What to Prepare for Filing Your Annual Income Tax Return?

Here are some items you should get ready if you intend to file your Annual Income Tax Return (AITR) with the Bureau of Internal Revenue (BIR) in the Philippines:

1. Filing Deadline

Be aware of the deadline to ensure that you file and pay your annual income tax returns on time. The AITR is typically submitted on or before April 15 of each year for most taxpayers. The deadline is instead extended to April 17, 2023 (Monday), as April 15, 2023 is a weekend.

2. Income Documents

Collect all the essential records, such as paychecks, bank statements, and receipts, that demonstrate your annual revenue. Some receipts, such as those from charitable contributions and medical costs, may be deducted.

3. Tax Forms

Depending on his or her source of income and job position, each taxpayer is obliged to file a certain annual income tax return. The BIR Form 1700 (For Individuals Earning Purely Compensation Income), the BIR Form 1701 (For Individuals Including Mixed Income Earners, Estates and Trusts), and the BIR Form 1701A (For Individuals Earning Income Purely from Business/Profession) are now all available as a result of the new TRAIN Law.

Fill out the appropriate tax form completely. The forms are available for download on the BIR website, and you can use the eFPS facility to submit them online.

4. Required Attachment

Along with the properly completed BIR Forms, you must also prepare and send the following attachments when filing your AITR.

1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable.

2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304), if applicable.

3. Duly approved Tax Debit Memo, if applicable.

4. Previously filed return, if an amended return is filed for the same quarter.

5. Tax Identification Number (TIN)

As it is necessary to file your tax return, be sure you have your TIN. You can apply for a TIN at the BIR if you don't already have one.

Reminder:

Even though people who make less than P250,000 a year are excused from paying income taxes, they still need to file their tax compliance paperwork with the BIR.

To avoid any fines or legal troubles, it's crucial to make sure all the information on your tax return is true and complete. You can speak with us if you need advice or if you have any questions.

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