FILING OF ANNUAL INCOME TAX RETURN FOR SELF-EMPLOYED INDIVIDUALS

Instructions:

1. Download BIR Forms 1701 Version 2018 at www.bir.gov.ph.
2. Input ALL the necessary information in the returns (see below).
3. Compute the income tax payable, if any for taxable year 2020.
4. Submit in Canvas BIR Form 1701.

Relevant information:

YOU are engaged in the merchandising business and at the same time employed by PA-MINE Corp. as an Accountant.

In compliance with the existing rules in doing business, you applied for your TIN where your home BIR RDO (select the BIR which has jurisdiction over the place of your residence) assigned you Taxpayer Identification No. 123-456-789-0000.

Additional information:

1. You chose graduated tax rate
2. You opted for itemized deduction
3. Your financial records showed the following:

• Gross Sales Php4,000,000
• Cost of Sales Php 2,000,000
• Expenses

• • • Salaries and wages of staff Php 360,000
    • Depreciation of car used in delivery Php 100,000

• • • Representation expense Php 10,000

• • • Office Rent expense Php 360,000
    • Rent expense on your condominium Php 240,000
    • Utilities in office Php 120,000

• • • Electricity expenses in condominium Php 60,000
    • Registration fees of delivery car and other taxes Php 5,000

• • • Gas and oil Php 120,000
    • Registration fees of personal car and other taxes Php 5,000
    • Gas and oil of personal Php 120,000

4. Your clients are Top Withholding Agents and thus withheld 1% on their purchases from you and given you Form 2307:

• • • 1^st quarter 2307 Php 10,000
    • 2^nd quarter 2307 Php 10,000

• • • 3^rd quarter 2307 Php 10,000

• • • 4^th quarter 2307 Php 10,000

5. PA-MINE Corp. reported your gross compensation income for the year in the amount of Php 600,000.00

6. The non-taxable compensation is composed of the following

• • 13^th month pay Php 50,000
  • Other benefits Php 30,000
  • SSS, Philhealth, Pagibig Php 20,000
  • De minimis benefits of Php 10,000

7. PA-MINE Corp. withheld tax on your compensation in the amount of Php 20,000

Disregard the penalty, if any.