1. Enter all the required information in CAPITAL LETTERS using BLACK INK. Mark applicable boxes with an "X". Two copies MUST be filed with the BIR and one held by the taxpayer.
2. Indicate Taxpayer Identification Number (TIN) and registered name on each page.
3. For all questions wherein an appropriate box is provided for a possible answer, mark the applicable box corresponding to the chosen answer with an "X"; and
4. Required information wherein the space provided has a letter separator, the same must be supplied with CAPITAL LETTERS where each character (including comma or period) shall occupy one box and leave one space blank for every word. However, if the word is followed by a comma or period. Do Not write "NONE" or make any other marks in the boxes.
| PART NO. | PARTS | PAGE NO. |
| I | Background Information | 1 |
| II | Total Tax Payable | 1 |
| III | Details of Payment | 1 |
| IV | Computation of Income Tax-REGULAR RATE | 2 |
| V | Summary of Income Tax Due | 3 |
| VI | Tax Relief Availment | 3 |
| VII | Other Relevant Information - SPOUSE | 4 |
| VIII | Information - External Auditor/Accredited Tax Agent | 4 |
| IX | Consolidated Computation by Tax Regime | 5 |
| X | Mandatory
attachments for Exempt/Special Tax Regime per Activity USE
THIS IF THERE ARE MORE THAN ONE EXEMPT AND/OR SPECIAL TAX
REGIME. Consolidate the amounts of all Mandatory Attachments PER TAX REGIME and reflect the same to the corresponding schedules and columns of Part IX. |
1 to 4M |
| SCHED NO. | SCHEDULES | PAGE NO. |
| 1 | Gross Compensation and Tax Withheld | 6 |
| 2 | Sales/Revenues/Receipts/Fees | 6 |
| 3 | Other Taxable Income Not Subjected to Final Tax | 6 |
| 4A | Cost of Sales (For those Engaged in Trading) | 6 |
| 4B | Cost of Sales (For those Engaged in Manufacturing) | 7 |
| 4C | Cost of Services | 7 |
| 5 | Non-Operating Income | 7 |
| 6 | Ordinary Allowable Itemized Deductions | 7-8 |
| 7 | Special Allowable Itemized Deductions | 9 |
| 8 | Computation of Net Loss Carry Over (NOLCO) | 9 |
| 9 | Tax Credits/Payments-Attach proof | 10 |
| 10 | Balance Sheet | 10 |
| 11A | Tax
Filer's-Reconciliation of Net Income per Books Against Taxable Income |
11 |
| 11B | Spouse's-Reconciliation
of Net Income per Books Against Taxable Income |
11 |
| 12 | Supplemental Information | 12 |
Item 1 Indicate the taxable year covered by the return being filed;
Item 2 Choose "Yes" if the tax return is one amending the previous return filed, "No" if not;
Item 3 Choose "Yes" if the return is made for a fractional part of a year (e.g. commencement or retirement); and
Item 4 Indicate the appropriate Alphanumeric Tax Code(ATC).
Item 5 Taxpayer Identification Number (TIN): Enter your TIN. Your Spouse's TIN is entered in Item 95. If you do not have a TIN, apply for one before filing using Application for Registration-For Self-Employed and Mixed Income Individuals, Estates and Trusts (BIR Form No 1901).
Item 6 RDO Code: Enter the appropriate code for your RDO per BIR Form No.1901 and/or Certificate of Registration (BIR Form No. 2303).
Item 7 Tax Filer Type: Mark applicable boxes with an "X".
Item 8 - Tax filer's Name: Enter your Last Name, First Name, Middle Name for individuals/ ESTATE of Fist Name, Middle Name, Last Name/ TRUST FAO First Name, Middle Name, Last Name as it was entered on your BIR Form Nos. 1901/1905/2303.
Item 9 - Trade Name: Indicate trade name as shown in the Department of Trade and Industry's Certificate of Registration, Mayor's Permit etc.
Item 10 - Registered Adress: Enter Registered Address as indicated in your BIR Form No. 2303. If you have moved since your previous filing and have NOT updated your registration, you must update your registration by filing filing BIR Form No. 1905. In the meantime, accomplish Part VIIB on page 4 of this ITR.
Item 17 - Main Line of Business: Indicate the nature of the business the taxpayer is engaged in as indicated in the BIR Form 2303.
Item 18-19 PSIC/PSOC Code: Indicate the Philippine Standard Industrial Classification (PSIC) Code and/or Philippine Standard Occupational Classification (PSOC) Code. Refer to www.bir.gov.ph for your applicable PSIC/PSOC or visit the local BIR Office.
Item 20- Method of Deduction: Choose either Itemized Deduction under Section 34(A-J), NIRC or Optional Standard Deduction (OSD), which 40% of Gross Sales/Receipts/Revenues/Fees/ under Section 34(L), NIRC as amended by RA 9504.The chosen method of deduction used in the first quarter of the year shall be consistently applied throughout the year.
Item 21-23: Mark applicable boxes with an "X".
Item 24-25 - Claiming Additional Exemption: An individual shall be allowed an additional exemption of P25,000 for each qualified dependent child, but not exceeding four (4). The additional exemption for dependents shall be claimed by the husband, who is deemed the proper claimant unless he explicitly waives his right in favor of his wife. In the case of legally separated spouses, additional exemption may be claimed only by the spouse who has custody of the child or children; Provided, that the total amount of additional excemptions that may be claimed by both shall not exceed the maximum additional exemption allowed by the Tax Code.
"Qualified Dependent Child" means a legitimate, illegitimate or legally adopted child chiefly dependent upon and living with the taxpayer if such dependent is not more than twenty-one (21) years of age, unmarried and not gainfully employed or if such dependent, regardless of age, is incapable of self-support because of mental or physical defect. If you mark "yes" for Item 24, you must enter the number of Dependent Children you are claiming in Item 25, and then provide the required information for each child in Part VIIA.
Should you have additional dependent(s) during the taxable year, you may claim the corresponding additional exemption, as the case may be, in full for such year. If the taxpayer dies during the taxable year, his estate may still claim the personal and additional exemptions for himself and his dependent(s) as if he died at the close of such taxable year.
If the spouse or any of the dependents dies or if any of such dependents marries, become twenty-one (21) years old or becomes gainfully employed during the taxable year, the taxpayer may still claim the same exemptions as if the spouse or any of the dependents died, or as if such dependents married, become twenty-one (21) years old or became employed at the close of such year.
Complete first Part IV - Computation of Income Tax on Page 2 before accomplishing these items. Then transfer the information from Part IV to each of the items. Individual instructions as to the source of the information and the necessary calculations are provided on each line item.
Overpayment Line: An excess of the total tax credits/payments over the actual income tax due computed in the final adjusted return may be refunded or issued with the Tax Credit Certificate to the taxpayer or credited against its estimated income tax liabilities for the quarters of succeeding taxable years. The taxpayer shall exercise its option by placing an "X" in the appropriate box, which option shall be considered irrevocable for that taxable period. Thus, once the taxpayer opted to carryover and apply the excess income tax against income tax due for the succeeding taxable year, no application for cash refund or issuance of a tax credit certificate shall be allowed. In case the taxpayer fails to signify its choice, the excess payment shall be automatically carried-over to the next taxable period.
Signature Line: When all pages of the return are complete, sign the return in the place indicated, enter the number of pages filed in Item 33. In Items 34-37, provide the required information about your Government Issued ID and its details.
Enter the information required and then file your original ITR plus two(2) copies to any AAB within RDO where registered. Refer to www.bir.gov.ph for your applicable AAB or visit the local BIR Office.
For no payment returns, proceed with filing your ITR with the RDO where the taxpayer is registered or the concerned RCO under the same RDO.
At the top of this page and in all succeeding pages that you are filing, enter your TIN and Last Name. The requirement for entering centavos on your ITR has been eliminated. If the amount of centavos id 49 or less, drop down the centavos(e.g. P100.49=P100.00). If the amount is 50 centavos or more, round up to the next peso (P100.50=P101.00).
Generally, for all the lines in this part you need to complete the appropriate scheduled and then transfer the sub-totals to the appropriate line. On the other lines make the appropriate calculations as directed and enter the totals.
Item 44 Premium Payment on Helth and/or Hospitalization Insurance: The amount of premiums not to exceed Two Thousand Four Hundred Pesos (P2,400) per family or Two Hundred Pesos (P200) a month paid during the taxable year for health and/or hospitalization insurance taken by the tax filer for himself, including his family, shall be allowed as a deduction from his gross income; Provided that the said family has a gross income of not more than Two Hundred Fifty Thousand Pesos (P250,000) for the taxable year; Provided, finally that in the case of married tax filers, only the spouse claiming the additional exemption for dependents shall be entitled to thid deduction.
Item 45 and 46 Personal and Additional Exemption:
An individual tax filer shall be allowed a basic personal exemption of Fifty Thousand Pesos (P50,000). In the case of married individuals where only one of the spouses is deriving income, only such spouse shall be allowed the personal exemption.
An individual shall be allowed an additional exemption of P25,000 for each qualified dependent child, not exceeding four(4). The additional exemption for dependents shall be claimed by the husband, who is deemed the proper claimant unless he explicitly waives his right in favor of his wife.
An Estate or Trust shall be allowed an exemption of Twenty Thousand Pesos (P20,000).
Item 57 to 59 Deductions Allowed under Existing Laws: May choose either the itemized or optional optional standard deduction, subject to REGULAR TAX RATES only. It shall indicate the choice by marking the with an "X" the appropriate box, otherwise, it shall be considered as having availed of the itemized deduction. Such choice made in the initial quarterly return during the taxable year is irrevocable for the said year for which the return is made. The ordinary and special deductions are discussed further under the appropriate schedule. Itemized deductions only, if subject to REGULAR and SPECIAL/EXEMPT Tax Regime.
Item 61 Optional Standard Deduction (OSD): A maximum of 40% of the Total sales/Revenue Receipts/Fees in Item 52 shall be allowed as deduction in lieu of the itemized deduction if the subject to REGULAR Income Tax Regime Only. However, individuals who availed and claimed this deduction is no longer required to submit its financial statements when it files its annual tax return and to keep such records pertaining to its gross income.
Item 67 The regular/normal graduated rate of income tax is 5-32% of net taxable income.
Complete the appropriate schedules and then transfer the sub-totals to the appropriate line from Part IV - Computation of Income Tax- Regular Rate, and Part IX- Consolidated Computation by Tax Regime.
Penalties shall be imposed and collected as part of the tax
Item 81 - Surcharge:
1) A surcharge of twenty five percent (25%) for each of the following voilations:
a)Failure to file any return any return and pay the amount of tax or installment due on or before the due dates;
b) Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed;
c) Failure to pay the full or part of the amount of the tax shown on the return, or the full amount of tax due for which no return is required to be filed, on or before the due date;
d) Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assesment.
2) A surcharge of fifty percent (50%) of the basic tax or of the deficiency tax shall be imposed in case of willful neglect to file the return within the period prescribed by the Tax Code and/or by rules and regulations or in case a false or fraudaulent return is filed.
Item 82 - Interests: Interest at the rate of twenty percent (20%) per annum on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid.
Item 83 - Compromise: This penalty is pursuant to existing/ applicable revenue issuances.
Taxpayer availing of any tax relief under the Tax Code must fill-up Items 86-94.
For ECONOZONES: Gross Income shall refer to gross sales or gross revenue derived from registered business activity within the zone, net of sales discounts, sales returns and allowances minus cost of sales or direct costs but before any deductions for administrative, marketing, selling, operating expenses or incidental losses during a given taxable period.
For BCDA: Gross Income shall refer to gross sales or gross revenue derived from registered business activity within the zone, net of sales discounts, sales returns and allowances minus cost of sales or direct costs but before any deductions for administrative, marketing, selling, operating expenses or incidental losses during a given taxable period. For those engaged in financial enterprises, gross income shall include interest income, gains from sales and other income net of costs of funds.
Item 89 Other Special Tax Credit refers to tax credit allowed under special laws, rules and issuances.
SPOUSE: Follow similar procedures as that of the tax filer, if any.
Part VIIA - Qualified Dependent Children: if wife is claiming for additional exemption, please attach waiver of the husband.
Part VIIB - Current Address: Accomplish if current address is different from registered address in Item 10.
All returns filed by an accredited tax agent on behalf of a taxpayer shall bear the following information:
a) For CPAs and others (individual practitioners and members of GPPs);
Items 112 & 114: Name and Taxpayer Identification Number(TIN):
Items 116-118: BIR Accreditation Number, Date of Issuance, and Expiry Date.
b) For members of the Philippine Bar(individual practitioners, members of GPPs);
Items 112 & 114: Name and Taxpayer Identification Number(TIN):
Items 116-118: BIR Accreditation Number, Date of Issuance, and Expiry Date.
If you are under regular rate only, do not accomplish Part IX, instead, proceed directly to Schedules-Regular Rate(Schedules 1 to 12B).
Part X - is applicable only for those with income subject to multiple tax regimes. However, you must first complete appropriate schedules from part X-Mandatory Attachments for Exempt/Special Tax Regimes per Activity pages1m to 5m, including the schedules - Regular Rate (Schedules 1 to 12B), if applicable. Accomplish as many PART X as there are activities/programs per TAX REGIME. Consolidate the amounts PER TAX REGIME under EXEMPT and/or SPECIAL from all of PART X-Mandatory Attachments which shall be reflected in the appropriate items of columns B and/or Cfor the Tax filer, and columns F and/or G for the spouse, if applicable.
Subsequently, transfer the applicable Items to Part V, and finally to Part II [Back]
The information provided in all of the schedules must be supported by the appropriate documents.
Schedule 1 - Gross Compensation Income and Tax Withheld of tax filer and/or Spouse.
Schedule 2-5 - Fill-up the information provided in the appropriate schedules and must be supported by the appropriate documents.
Schedule 6 - Ordinary Allowable Itemized Deductions (Attach additional sheets, if necessary): There shall be allowed as deduction from gross income all the ordinary and necessary trade and business expenses paid or incurred during the taxable year in carrying on or which are directly attributable to the development, management, operation and/or conduct of the trade and business. Itemized deduction includes also intersest, taxes, losses, bad debts, depreciation, depletion, charitable and other contributions, research and development and pension trust.
Schedule 7 - Special Allowable Itemized Deductions: There shall be allowable deduction from gross income in computing taxable income, in addition to the regular allowable itemized deduction, as provided under the existing regular allowable and special laws, rules and issuances such as, but not limited to, Rooming-in and Breast-feeding Practices under R.A. 7600, Adopt-A-School Program under R.A. 8525, Expanded Senior Citizens Act under R.A. 9257, Free Legal Assistance under R.A. 9999.
Schedule 8 - Computation of Net Loss Carry Over: Detailing the computation of available NOLCO (applied, unapplied and expired portion). Only net operating losses incurred by the qualified taxpayer may be carried over to the next three (3) immediately succeeding taxable years following the year of such loss.
Schedules 9 - Tax Credits/Payments: Indicate the amounts as shown in the Audited Financial Statements.
Schedule 10 - Balance Sheet: Indicate the amounts as shown in the Audited Financial Statements.
Schedule 11 - Reconciliation of Net Income per Books Against Taxable Income Tax Filer/Spouse: Indicate all the reconciling items in the financial statements added or subtracted from the net income reported in the financial statements which is to arrive at the taxable income reported in the income tax return. For the taxpayer subject to regular rate, fill up the non-deductible expenses such as: allowance for bad debts not actually written off, amortization and others which are non-deductible for taxation purposes Also, add other taxable income such as: recovery of bad debts previously written off, adjustment to retained earnings, and other adjustments that are considered as income for tax purposes.
Schedule 12A - Gross Income/Receipts Subjected to Final Withholding: Indicate the income/receipt of interests; royalties; dividends; prizes and winnings; fringe benefits; compensation subject to 15% preferential rate; sale/ exchange of real property; sale/exchange of shares of stock; other income and the corresponding final tax withheld/paid, if applicable.
Schedule 12B - Gross income/Receipts Exempt from Income Tax - Indicate personal/real properties received thru gifts, bequests, and devises; and other exempt income and receipts under Sec. 32(B) of the NIRC, as amended.