BIR issues policy in filing of ITR, annual info return

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Tuesday, March 8, 2011


THE Bureau of Internal Revenue (BIR) has prescribed the filing of income tax returns (ITR) and/or annual information return (AIR) by certain individuals, including estates and trusts, resident aliens and non-resident aliens engaged in trade in the locality.

Revenue Regulations (RR) 2-2011 dated March 1, 2011 states that "starting with taxable year 2010, individuals, estates and trusts required to file an ITR should file this together with the AIR or BIR Form#1705, which shall include such income subject to final withholding tax and those exclusions from gross income."          

"Individuals not required to file an ITR or those qualified for substituted filing may file an ITR for purposes of loans or foreign travel requirements. However, if they file an ITR, they should likewise attach a duly-accomplished AIR," it added.       
  
An individual whose annual taxable income exceeds P500T are also now required to file an AIR provided that those deriving compensation concurrently from two or more employers at any time during the taxable year shall file an ITR.         

Individuals, estates and trusts whose sole income has been subjected to final withholding tax under Section 57 of the Tax Code, with aggregate final tax withheld exceeding P125T annually, whether or not remitted to the BIR, are also told to file an AIR, as well as those whose sole income is exempt from income tax and whose total annual income exempted exceeds P500T.        
 
"The term 'individual whose compensation income has been subjected to final withholding tax' shall include aliens or Filipino citizens occupying the same positions as the alien employees who are employed by regional or area operating headquarters, offshore banking units, petroleum service contractors and sub-contractors...including those subject to fringe benefit tax," RR2 added.
      
The filing of ITR and AIR shall be done in triplicate copies with the Revenue District Office (RDO) where the individual, including estates and trusts, is required to register or where the individual has his legal residence or place of business on or before April 15 preceding the taxable year. The filing of AIR only is on or before May 15.
      
“For those already availing of the BIR's electronic filing and payment system (eFPS) but who have now been required to attach an AIR, they shall continue filing electronically the ITR but shall submit the hard copy of the e-filed return together with the hard copy of the AIR to the concerned RDO within 10 days from the filing of the electronic return,” BIR explained. (CGC)

Published in the Sun.Star Bacolod newspaper on March 08, 2011.

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