PUT THE GIVEN DETAILS BELOW IN THE BIR FORM (1700 FOR mixed earner estates and trusts)
PHILIPPINE SETTING
(no need to input some personal information)
Percentage tax due on the non-VAT portion of the sales/receipts shall be collected without penalty, if timely paid on the due date immediately following the month/quarter when taxpayer ceases to be a non-VAT.* Taxpayer shall be allowed an income tax credit of quarterly payments initially made under the 3% income tax option computed net of the allowable deduction offl granted for purely business income. ' Taxpayer is likewise liable for business tastes}. in addition to income tax. For this purpose, the taxpayer is required to update his registration from non-VAT to VAT taxpayer. Percentage tait pursuant to Section I It? of the Tax Code. as amended. shall be imposed from the beginning of the year until taxpayer is liable to VAT. VAT shall be imposed prospectively. Illustration 4: Mr. JMLH signified his intention to be taxed at 8% income tax rate on gross sales in his Ist Quarter Income Tax Return. He has no other source of income. His total sales for the first three (3) quarters amounted to P3,000,000.00 with 4th quarter sales of P3,500,000.00. 1s Quarter 2nd Quarter 3rd Quarter 4th Quarter (8% Rate) (8% Rate) (8% Rate) Total Sales P 500,000.00 P 500,000.00 P 2,000,000.00 P 3,500,000.00 Less: Cost of Sales 300,000.00 300,000.00 1,200,000.00 1,200,000.00 Gross Income P 200,000.00 P 200,000.00 P 800,000.00 P 2,300,000.00 Less: Operating Expenses 120,000.00 120,000.00 480,000.00 720,000.00 Taxable Income P 80,000.00 80,000.00 P 320,000,00 P 1,580,000.00 Tax due shall be computed as follows: Total Sales P 6,500,000.00 Less: Cost of Sales 3.000.000.00 Gross Income P 3,500,000.00 Less: Operating Expenses 1.440.000.00 Taxable Income P 2,060,000.00 Income Tax Due Tax Due under the graduated rates P 509.200.00 Less: 8% income tax previously paid (Q1 to Q3) (P3,000,000.00 - P250,000.00) x 8% 220,000.00 Annual Income Tax Payable P 289,200.00 * The gross receipts exceeded the VAT threshold of P3,000,000.00. Taxpayer shall be liable to pay income tax under graduated rates pursuant to Section 24(A)(2)(a) of the Tax Code, as amended.Republic of the Philippines For BIR BCS/ Department of Finance Use Only Item: Bureau of Internal Revenue BIR Form No. 1701 Annual Income Tax Return Individuals (including MIXED Income Earner), Estates and Trusts January 2018 (ENCS) Enter all required information in CAPITAL LETTERS using BLACK ink. Mark applicable boxes with Page 1 an "X". Two copies must be filed with the BIR and one held by the Tax Filer. 1701 01/18ENCS P1 1 For the Year (YYYY) 2 Amended Return? Yes No 3 Short Period Return? Yes No PART I - Background Information of Taxpayer/Filer 4 Taxpayer Identification Number (TIN) 0 0 0 0 0 5 RDO Code 6 Taxpayer Type Single Proprietor Professional Estate Trust Compensation Eamer 7 Alphanumeric Tax Code (ATC) 110 12 Business Income-Graduated IT Rates 11014 Income from Profession-Graduated IT Rates 11013 Mixed Income-Graduated IT Rates 11011 Compensation Income 110 15 Business Income - 8%IT Rate 11017 Income from Profession - 8% IT Rate 110 16 Mixed Income - 8% IT Rate 8 Taxpayer's Name (Last Name, First Name, Middle Name)/ESTATE OF (First Name, Middle Name, Last Name)/ TRUST FAO: (First Name, Middle Name, Last Name) 9 Registered Address (Indicate complete address. If the registered address is different from the current address, go to the RDO to update registered address by using BIR Form No. 1905) L 9A ZIP Code 10 Date of Birth (MM/DD/YYYY) | 11 Email Address 12 Citizenship 13 Claiming Foreign Tax Credits?|14 Foreign Tax Number, if applicable IIIIIIII L Yes No 15 Contact Number (Landline/Cellphone No.) 16 Civil Status (if applicable) Single | Married Legally Separated Widow/er 17 If married, spouse has income? Yes |No 18 Filing Status Joint Filing Separate Filing 19 Income EXEMPT from Income Tax? | Yes No 20 Income subject to SPECIAL/PREFERENTIAL RATE? Yes No [If yes, fill out also consolidation of ALL activities per Tax Regime (Part X)] [If yes, fill out also consolidation of ALL activities per Tax Regime (Part X)] 21 Tax 21A Method of Deduction (choose one) Rate* Graduated Rates Itemized Deduction Optional Standard Deduction (OSD) (choose one) Choose Method of Deduction in Item 21A) [Sec. 34(A-J), NIRC] [40% of Gross Sales/Receipts/Revenues/Fees [Sec. 34(L), NIRC] 8% in lieu of Graduated Rates under Sec. 24(A) & Percentage Tax under Sec. 116 of NIRC [available if gross sales/receipts and other non-operating income do not exceed Three million pesos (P3M)] PART II - Total Tax Payable DO NOT enter Centavos, 49 Centavos or Less drop down 50 or more round up) Particulars A. Taxpayer/Filer B. Spous 22 Tax Due (From Part VI Item 5) 23 Less: Total Tax Credits/Payments (From Part Vil Item 10) 24 Tax Payable/(Overpayment) (Item 22 Less Item 23) 25 Less: Portion of Tax Payable Allowed for 2nd Installment to be paid on or before October 15 (50% or less of Item 22) 26 Amount of Tax Payable/(Overpayment) (Item 24 Less Item 25) Add: Penalties 27 Interest 28 Surcharge 29 Compromise 30 Total Penalties (Sum of Items 27 to 29 31 Total Amount Payable/(Overpayment) (Sum of Items 26 and 30) 32 Aggregate Amount Payable/(Overpayment) (Sum of Items 31A and 31B) If overpayment, mark one (1) box only. (Once the choice is made, the same is irrevocable) To be refunded To be issued a Tax Credit Certificate (TCC) To be carried over as a tax credit for next year/quarter I declare under the penalties of perjury that this retum, and all its attachments, have been made in good faith, verified by me, and to the best of my knowledge and belief, are true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority there of. Further, I give my consent to the processing of my information as contemplated under the "Data Privacy Act of 2012 (R.A. No. 10173) for legitimate and lawful purposes. (If signed by an Authorized Representative, indicate TIN and attach authorization letter) 33 Number of Attachments Printed Name and Signature of Taxpayer/Authorized Representative PART III - Details of Payment Particulars Drawee Bank/Agency Number Date (MM/DD/YYYY) Amount 34 Cash/Bank Debit Memo L 35 Check 36 Tax Debit Memo 37 Others (specify below) Machine Validation/Revenue Official Receipt Details (if not filed with an Authorized Agent Bank) Stamp of Receiving Office/AAB and Date of Receipt (RO's Signature/Bank Teller's Initial) *NOTE: The BIR Data Privacy Policy is in the BIR website (www.bir.gov.ph)BIR Form No 1701 Annual Income Tax Return January 2018 (ENCS) Individuals (including MIXED Income Earner), Estates and Trusts Page 2 1701 01/18ENCS P2 TIN Tax Filer's Last Name 0 0 0 0 0 PART IV - Background Information of Spouse 1 Spouse's Taxpayer Identification Number -0 0 0 0 0 2 RDO Code 3 Filer's Spouse Type Single Proprietor Professional Compensation Earner 4 Alphanumeric Tax Code (ATC) 11012 Business Income-Graduated IT Rates 11014 Income from Profession-Graduated IT Rates 1013 Mixed Income-Graduated IT Rates 11011 Compensation Income 11015 Business Income - 8%IT Rate 11017 Income from Profession - 8% IT Rate 11016 Mixed Income - 8%IT Rate 5 Spouse's Name (Last Name, First Name, Middle Name) 6 Contact Number 7 Citizenship 8 Claiming Foreign Tax Credits? Yes No 9 Foreign Tax Number (if applicable) 10 Income EXEMPT from Income Tax? Yes No 11 Income subject to SPECIAL/PREFERENTIAL RATE? | Yes No [If yes, fill out also consolidation of ALL Activities per Tax Regime (Part X)] [If yes, fill out also consolidation of ALL activities per Tax Regime (Part X)] 12 Tax 12A Method of Deduction (choose one) Rate* Graduated Rates Itemized Deduction Optional Standard Deduction (OSD) (choose one) Choose Method of Deduction in Item 12A) Sec. 34(A-J), NIRC 40% of Gross Sales/Receipts/Revenues/Fees [Sec. 34(L), NIRC] 8% in lieu of Graduated Rates under Sec. 24(A) & Percentage Tax under Sec. 116 of NIRC available if gross sales/receipts and other non-operating income do not exceed Three million pesos (23M)] PART V - Computation of Tax Schedule 1- Gross Compensation Income and Tax Withheld (Attach Additional Sheets, if necessary) On Items 1 and 2, enter the required information for each of your employers and mark (X) whether the information is for the Taxpayer orthe Spouse. On Item 3A, enter the Total Gross Compensation and Total Tax Withheld forthe Taxpayer and on Item 3B, for the Spouse. (DO NOT enter Centavos; 49 Centavos or Less drop down; 50 or more round up) a. Name of Employer Taxpayer Spouse b. Employer's TIN 2 H Taxpayer Spouse IL b. Employer's TIN (Continuation of Table Above) c. Compensation Income d. Tax Withheld 2 3A Gross Compensation Income and Total Tax Withheld for TAXPAYER (To Part V Schedule 2 Item 4A and Part VII Item 5A) 3B Gross Compensation Income and Total Tax Withheld for SPOUSE (To Part V Schedule 2 Item 4B and Part Vil Item 5B) IIIIL IL Schedule 2 - Taxable Compensation Income DO NOT enter Centavos; 49 Centavos or Less drop down; 50 or more round up) Particulars A. Taxpayer/Filer B. Spouse 4 Gross Compensation Income (From Part V Schedule 1 Item 3Ac/3Bc) 5 Less: Non-Taxable / Exempt Compensation 6 Taxable Compensation Income (Item 4 Less Item 5) 7 Tax Due-Compensation Income (Item 6 x applicable Income Tax Rate Schedule 3 - Taxable Business Income (If graduated rates, fill in items 8 to 24; if 8% flat income tax rate, fill in items 25 to 30) 3.A - For Graduated Income Tax Rates 8 Sales/Revenues/Receipts/Fees 9 Less: Sales Returns, Allowances and Discounts 10 Net Sales/Revenues/Receipts/Fees (Item 8 Less Item 9) Cost of Sales/Services (applicable only if availing Itemized Deductions) 12 Gross Income/(Loss) from Operation (Item 10 Less Item 11) Less: Deductions Allowable under Existing Laws 13 Ordinary Allowable Itemized Deductions (From Part V Schedule 4 Item 18) 14 Special Allowable Itemized Deductions (From Part V Schedule 5 Item 3 and/or Item 6) 15 Allowance for Net Operating Loss Carry Over (NOLCO) (From Part V Schedule 6 Item 8 and/or Item 13) L 16 Total Allowable Itemized Deductions (Sum of Items 13 to 15) OR 17 Optional Standard Deduction (OSD) (40% of Item 10) 18 Net Income/(Loss) (If Itemized: Item 12 Less Item 16; If OSD: Item 10 Less Item 17) Add: Other Non-Operating Income (specify below) 19 20 21 Amount Received/Share in Income by a Partner from General Professional Partnership (GPP) 22 Total Other Non-Operating Income (Sum of Items 19 to 21) 23 Taxable Income-Business (Sum of Items 18 and 22) 24 Total Taxable Income - Compensation & Business (Sum of Items 6 and 23) 25 Total Tax Due-Compensation and Business Income (under graduated rates) (Item 24 x applicable income tax rate ) (To Part Vi Item 1)BIR Form No. 1701 Annual Income Tax Return January 2018 (ENCS) Individuals (including MIXED Income Earner), Estates and Trusts Page 3 1701 01/18ENCS P3 TIN |Tax Filer's Last Name 0 0 0 0 0 3.B - For 8% Flat Income Tax Rate (DO NOT enter Centavos, 49 Centavos or Less drop down, 50 or more round up) Particulars A. Taxpayer/Filer B. Spouse 26 Sales/Revenues/Receipts/Fees (net of sales returns, allowances and discounts) Add: Other Non-Operating Income (specify below) 27 28 Total Income (Sum of Items 26 and 27) T 29 Less: Allowable reduction from gross sales/receipts and other non-operating income of purely self- employed individuals and/or professionals in the amount of P250,000 (not applicable if with compensation income) 30 Taxable Income/(Loss) (Item 28 Less Item 29) 31 Tax Due-Business Income (Item 30 x 8% Flat Income Tax Rate) 32 Total Tax Due-Compensation & Business Income (under flat rate) (Sum of Items 7and 31) (To Part VI Item 1) JIL Schedule 4 - Ordinary Allowable Itemized Deductions (attach additional sheet/s, if necessary) 1 Amortizations 2 Bad Debts TT ILL 3 Charitable and Other Contributions L 4 Depletion 5 Depreciation L 6 Entertainment, Amusement and Recreation 7 Fringe Benefits 8 Interest 9 Losses 10 Pension Trusts 11 Rental 12 Research and Development 13 Salaries, Wages and Allowances 14 SSS, GSIS, Philhealth, HDMF and Other Contributions 15 Taxes and Licenses 16 Transportation and Travel 17 Others (Deductions Subject to Withholding Tax and Other Expenses) (Specify below; Add additional sheet(s), if necessary] a Janitorial and Messengerial Services b| Professional Fees c Security Services 18 Total Ordinary Allowable Itemized Deductions (Sum of Items 1 to 17d) (To Part V Schedule 3.A Item 13) Schedule 5 - Special Allowable Itemized Deductions (attach additional sheet/s, if necessary) 5.A - Taxpayer/Filer Description Legal Basis Amount 1 JL 2 L 3 Total Special Allowable Itemized Deductions-Taxpayer/Filer (Sum of Items 1 and 2) (To Part V Schedule 3.A Item 14A) 5.B - Spouse 4 5 6 Total Special Allowable Itemized Deductions-Spouse (Sum of Items 4 and 5) (To Part V Schedule 3.A Item 14B) Schedule 6 - Computation of Net Operating Loss Carry Over (NOLCO) 6.A - Computation of NOLCO Description A. Taxpayer/Filer B. Spouse 1 Gross Income L JL 2 Less: Ordinary Allowable Itemized Deductions 3 Net Operating Loss (Item 1 Less Item 2) (To Schedule 6.A.1 Item 7A &/or Schedule 6.A.2 Item 12A) 6.A.1 - Taxpayer/Filer's Detailed Computation of Available NOLCO Net Operating Loss B. NOLCO Applied E. Net Operating Loss Year Incurred A. Amount Previous Year/s C. NOLCO Expired D. NOLCO Applied Current Year (Unapplied) (E) = A - (B+C+D) O UT 8 Total NOLCO - Taxpayer/Filer (Sum of Items 4D to 7D) (To Part V Schedule 3.A Item 15A)BIR Form No 1701 Annual Income Tax Return January 2018 (ENCS) Individuals (including MIXED Income Earner), Estates and Trusts Page 4 1701 01/18ENCS P4 TIN Tax Filer's Last Name 0 0 0 0 0 (Continuation of Schedule 6) 6.A.2 - Spouse's Detailed Computation of Available NOLCO Net Operating Loss B. NOLCO Applied C. NOLCO Expired D. NOLCO Applied E. Net Operating Loss Year Incurred . Amount Previous Year/s Current Year (Unapplied) (E)= A - (B+C+D)] 9 10 11 12 13 Total NOLCO - Spouse (Sum of Items 9D to 12D) (To Part V Schedule 3.A Item 15B PART VI - Summary of Income Tax Due Regular Rate-Income Tax Due (From Part V, Either Item 25 or Item 32 2 Special Rate-Income Tax Due (From Part X Item 17B/17F) 3 Less: Share of Other Government Agency, if remitted directly to the Agency 4 Net Special Rate-Income Tax Due/Share of National Govt. (Item 2 Less Item 3) 5 Total Income Tax Due (Sum of Items 1 & 4) (To Part II Item 22 PART VII - Tax Credits/Payments (attach proof) 1 Prior Year's Excess Credits 2 Tax Payments for the First Three (3) Quarters 3 Creditable Tax Withheld for the First Three (3) Quarters 4 Creditable Tax Withheld per BIR Form No. 2307 for the 4th Quarter 5 Creditable Tax Withheld per BIR Form No. 2316 (From Part V Schedule 1 Item 3Ad/3Bd) 6 Tax Paid in Return Previously Filed, if this is an Amended Return 7 Foreign Tax Credits, if applicable 8 Special Tax Credits, if applicable (To Part Vill Item 6) 9 Other Tax Credits/Payments (specify)_ 10 Total Tax Credits/Payments (Sum of Items 1 to 9) (To Part II Item 23) PART VIII - Tax Relief Availment VIII.A - Special Rate 1 Regular Income Tax Otherwise Due (Part X Item 16B &/or Item 16F X applicable regular income tax rate) 2 Tax Relief on Special Allowable Itemized Deductions Part X Item 7B and/or Item 7F X applicable regular income tax rate) 3 Sub-Total - Tax Relief (Sum of Items 1 and 2) 4 Less: Income Tax Due (From Part X Item 17B and/or Item 17F) 5 Tax Relief Availment Before Special Tax Credit (Item 3 Less Item 4) 6 Add: Special Tax Credit, if any (From Part VII Item 8 7 Total Tax Relief Availment- SPECIAL (Sum of Items 5 and 6) VIII.B - Exempt 8 Regular Income Tax Otherwise Due (Part X Item 16A &/or 16E X applicable regular income tax rate) 9 Tax Relief on Special Allowable Itemized Deductions Part X Item 7A and/or Item 7E X applicable regular income tax rate) IIIII 10 Total Tax Relief Availment- EXEMPT (Sum of Items 8 and 9) PART IX - Reconciliation of Net Income per Books Against Taxable Income (Attach additional sheet/s, if necessary) Particulars A. Taxpayer/Filer B. Spouse 1 Net Income/(Loss) per Books Add: Non-Deductible Expenses/Taxable Other Income 2 5 Total (Sum of Items 1 to 4) Less: A) Non-Taxable Income and Income Subjected to Final Tax 6 LL 7 B) Special/Other Allowable Deductions 8 9 10 Total (Sum of Items 6 to 9) 11 Net Taxable Income/(Loss) (Item 5 Less Item 10) TABLE 1- Tax Rates (effective January 1, 2018 to December 31, 2022) TABLE 2 - Tax Rates (effective January 1, 2023 and onwards) If Taxable Income is: Tax Due is: If Taxable Income is: Tax Due is: Not over P 250,000 0% Not over P 250,000 0% Over P 250,000 but not over P 400,000 20% of the excess over P 250,000 Over P 250,000 but not over P 400,000 15% of the excess over P 250,000 Over P 400,000 but not over P 800,000 P 30,000 + 25% of the excess over P 400,000 Over P 400,000 but not over P 800,000 P 22,500 + 20% of the excess over P 400,000 Over P 800,000 but not over P 2,000,000 P 130,000 + 30% of the excess over P 800,000 Over P 800,000 but not over P 2,000,000 P 102,500 + 25% of the excess over P 800,000 Over P 2,000,000 but not over P 8,000,000 P 490,000 + 32% of the excess over P 2,000,000 Over P 2,000,000 but not over P 8,000,000 P 402,500 + 30% of the excess over P 2,000,000 Over P 8,000,000 P 2,410,000 + 35% of the excess over P 8,000,000 Over P 8,000,000 P 2,202,500 + 35% of the excess over P 8,000,000
