New BIR ITR Forms-A A +A
Monday, September 19, 2011
WITH the issuance of Revenue Memorandum Circular (RMC) No. 40-2011, the Bureau of Internal Revenue (BIR) has released the June 2011 versions of the following annual income tax returns:
BIR Form 1700 - for use of individuals earning purely compensation income
BIR Form 1701 - for self-employed individuals, individuals with mixed income, and estates and trusts
BIR Form 1702 - for corporations and partnerships
Except for the inclusion of two new sections on taxpayer activity profile and tax relief availment, no significant changes were introduced in BIR Form 1702.
On the other hand, the revised BIR Forms 1700 and 1701 now require disclosure of additional information such as income subjected to final tax, income exempt from tax, and exclusions from gross income under Section 32(B) of the Tax Code.
Under the guidelines and instructions of the enhanced BIR Form 1700, pure compensation income earners whose income tax has been correctly withheld (hence previously qualified for substituted filing) shall now be required to file an income tax return if their annual taxable exceeds P500,000. Hence, they should also accomplish Part IV of enhanced BIR Form 1700.
Filing of enhanced BIR Form 1700 will also be mandatory for individual taxpayers whose sole income has been subjected to final withholding tax with aggregate final tax withheld exceeding P125,000 annually (whether remitted or not remitted to the BIR) and individuals whose sole income is exempt from income tax and whose total annual income (exempt) exceeds P500,000. However, they will accomplish only Part I and Part IV of the return.
The new returns shall be used for the annual income tax filing covering calendar year 2011, which is due on or before April 15, 2012. The new versions shall also be required for juridical entities following fiscal year of reporting starting with fiscal year ending Jan. 31, 2012.
(Source: Punongbayan & Araullo)
Published in the Sun.Star Cebu newspaper on September 20, 2011.