Revenue bureau releases new ITR forms-A A +A
Monday, September 19, 2011
THE Bureau of Internal Revenue has released new income tax return (ITR) forms for individual and corporate taxpayers covering taxable year 2011.
Released under Revenue Memorandum Circular (RMC) 40-2011 were enhanced versions of BIR Form No. 1700 for annual ITR for individuals earning purely compensation income; Form No. 1701 for annual ITR for self-employed individuals, estates and trusts; and Form No. 1702 for corporation, partnership and other non-individual taxpayers.
“All juridical entities following the fiscal year of reporting are likewise required to use the new BIR Form No. 1702 starting with those covered by fiscal year ending January 31, 2012,” stated RMC 40 dated September 5, 2011.
Form 1700 is filed by employees except those expressly exempted by law from filing the same and except employees qualified under the “substituted filing scheme.” With the issuance of the new Form 1700, however, pure compensation income earners whose annual taxable income derived from within the Philippines exceeds P500,000 and on which income the correct income tax has been correctly withheld are now required to file.
Employees earning compensation income concurrently from two or more employers at any time during a taxable year shall likewise file said return, including filling up Part IV, which refers to supplemental information on gross income/receipts subject to final withholding tax and gross income/receipts exempt from income tax.
Also required to file the return “but only Part I and Part IV thereof are individuals, estates and trusts whose sole income has been subjected to final withholding tax in excess of P125,000 annually, whether remitted or not to the BIR, and individuals whose sole income is exempt from income tax where the total annual (exempt) income exceeds P500,000.”
For BIR Form 1701, those required under the law to file the same should also fill out Part VIII or the supplemental information on gross income/receipts subject to final withholding tax and gross income/receipts exempt from income tax.
The new BIR Form 1702, meanwhile, includes a section on taxpayer activity profile and on tax relief availment. (Cheryl G. Cruz)
Published in the Sun.Star Bacolod newspaper on September 19, 2011.