Primer on BIR Form No. 1701 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts-Including those with both Business and Compensation Income) and BIR Form No. 1702 (Annual Income Tax Return for Corporation, Partnership and Other Non-Individual Taxpayer) November 2011 ENCS

March 8, 2013 REVENUE MEMORANDUM CIRCULAR NO. 026-13 SUBJECT : Primer on BIR Form No. 1701 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts-Including those with both Business and Compensation Income) and BIR Form No. 1702 (Annual Income Tax Return for Corporation, Partnership and Other Non-Individual Taxpayer) November 2011 ENCS TO : All Internal Revenue Officials, Employees and Others Concerned This Circular is issued to disseminate the use of the Primer that will be helpful in accomplishing the BIR Form Nos. 1701 and 1702. CHATEa Since the start of using the revised aforementioned BIR Forms last year, many of the taxpayers clamored on the difficulties they encountered and the tedious task in filling up these long forms because of the changes that were made with the previous forms. With these, the primer is made and developed primarily to cater taxpayers with accessible, efficient and easy filling up of the said two forms. Also, this primer serves as a reference guide on how to properly accomplish the forms and are listed line per line item with its corresponding explanation and supporting details while filling up the forms. The primer shall be available to all taxpayers and can be downloaded/viewed from the BIR website ( http://www.bir.gov.ph ). All revenue officials and employees are hereby enjoined to give this Circular as wide a publicity as possible. (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT BIR Form 1701 Primer Annual Income Tax Return for Self-Employed/Professionals, Estates and Trusts (Including Those with Both Business and Compensation Income) Individuals who are engaged in trade or business or the practice of profession including those mixed income earners ( i.e., those engaged in the trade/business or profession who are also earning compensation income) are required to file an annual income tax in accordance with Sec. 51 of the Code, as amended. The annual income tax return summarizes all the transactions covering the calendar year of the taxpayer. This Form is to be accomplished by the taxpayer in three (3) copies. The first two (2) copies upon filing will be submitted to BIR for its File and Encoding Copies, while the third copy is retained by the taxpayer for his/her/its File Copy. This Form is required to be filed, whether or not resulting in taxable income or loss or no operations/transactions. The following are the general instructions in accomplishing this Form: (1) All applicable spaces must be filled in; (2) All information required by the Form must be written in capital fonts (CAPITAL LETTERS); (3) Mark with an "X" all applicable circles. (A) Contents and Instruction/Description of the Fields of Information/Data Required by the Form . 54A/B Premium on Health and/or Indicate the amount of actual health and/or Hospitalization Insurance hospitalization insurance premium but not to (not to exceed P2,400/year) exceed P2,400.00 Provided, that, the family gross income is P250,000.00 or less in a taxable year. Provided, finally, that in case of married taxpayers, only the spouse claiming for additional exemption for dependents shall be entitled to this deduction. 54C/D Personal Exemption/ Indicate the amount of P50,000.00 allowed for Exemption for Estate each individual taxpayer, whether single or or Trust married. For Estate or Trust, the personal exemption is P20,000.00. 54E/F Additional Exemptions Indicate the amount claimed by individual, whether single or married, which shall be P25,000.00 for each qualified dependent child, not exceeding four (4). For example: with 1 qualified dependent child P25,000.00; with 5 qualified dependent children, only P100,000.00 is allowed (4 x P25,000.00). 54G/H Total Deductions Write the Sum of Items 54A, C & E/54B, D & F. 55 Total Compensation Indicate the amount which is Item 53A less Income/(Excess of 54G/Item 53B less 54H. Deductions) 56 Sales/Revenues/Receipts/ Write the amount of Sales/Revenues/Receipts/ Fees (net of sales returns, Fees (net of sales returns, allowances and allowances and discounts) discounts) of the taxpayer/spouse during the taxable year from trade/business or practice of profession segregated into corresponding columns of exempt, special rate or regular rate. For example: BMBE-exempt, PEZA-special rate. 57 Add: Other Taxable/Exempt Indicate the amount of other taxable/exempt Income from Operation, not income from operation, which was not subject to final tax subjected to final tax. For example: scrap sale. 58 Total Sales/ Indicate the amount of sales/receipts Revenues/ /revenues/fees and other taxable income Receipts/Fees which is the sum of Items 56A & 57M, 56B & 57N for exempt, 56C & 57O, 56D & 57P for special rate and 56E & 57Q, 56F & 57R for regular rate. 59 Less: Cost of Sales/ Indicate the amount of direct cost incurred in Services generating the sales from goods/services. 60 Net Write the amount of net sales/revenues/ Sales/Revenues/ receipts/fees which is Item 58A less 59A, 58B Receipts/Fees less 59B for exempt, 58C less 59C, 58D less 59D for special rate and 58E less 59E, 58F less 59F for regular rate. 61 Add: Non-Operating Indicate the amount of Non-operating Taxable Taxable Income Income. For example: Interest income from advances to employees. 62 Gross Income Write the amount of gross income which is the sum of Net sales/revenues/receipts/fees and non-operating taxable income (Item 60 plus Item 61). For ECOZONES 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 financial enterprises, gross income shall include interest income, gains from sales and other income net of costs of funds. 63 Less: Deductions Refers to allowable deductions. 63A/B Optional Standard Deduction Indicate the amount of computed OSD if the (OSD) option to use OSD is exercised. The amount of OSD is forty percent (40%) of the Total Sales/Revenues/Receipts/fees (Item 58E/58F x 40%). This type of deduction shall not be allowed for non-resident aliens engaged in trade or business. Once this option is availed OR of, the taxpayer need not submit the Account Information Form (AIF)/Financial Statements (FS). 63C/D/E/ Regular Allowable Itemized Indicate the amount of allowable expenses F/G/H Deductions incurred during the taxable year. This is the total amount reflected in the Mandatory Attachment to BIR Form No. 1701. 63I/J/K/ Special Allowable Write the amount of allowable deductions L/M/N Itemized Deductions provided under existing regular and special laws, rules and issuances such as but 63O/P/Q Description not limited to Rooming-in and Breastfeeding /R/S/T Practices under RA 7600, Adopt-a-School Legal Basis Program under RA 8525, Expanded Senior Citizens Discount under RA 9994, and Free Legal Assistance under RA 9999. 63U/V/W/ Allowance for NOLCO Write the amount of the applied portion of Net X/Y/Z (from Item 83) Operating Loss Carry Over (NOLCO) computed in Item 83 of Part VI, Schedule 2A. 63AA/ Total Allowable Indicate the sum of the regular and special AB/AC/ Itemized Deductions allowable itemized deductions, and allowance AD/AE/AF for NOLCO (Sum of Items 63C, I, O & U/63D, J, P & V/63E, K, Q & W/63F, L, R & X/63G, N, S & Y/63H, N, T & Z). 64 Net Income Indicate the amount of net income which is the difference between gross income and total deductions. (For taxpayers who opted to avail of OSD Item 62E less 63A/62F less 63B). For taxpayers who opted for itemized deductions Item 62A less 63AA/62B less 63AB/62C less 63AC/62D less 63AD/62E less 63AE/62F less 63AF.) 65 Less: Excess of Deductions Indicate the amount of excess of Deductions over Taxable Compensation over Taxable Compensation Income (from Income (from Item Item 55A/55B) OR the Total Deductions 55A/55B) OR the Total (from Item 54G/54H), if there is no Deductions (from Item Compensation Income. 54G/54H), if there is no Compensation Income 66 Taxable/Exempt Business Indicate the amount of Taxable/Exempt Income/Income from Business Income/Income from profession Profession which is Item 64 less Item 65. (Item 64 less 65) 67 Total Taxable Income Indicate the amount of Total Taxable Income (Sum of Items 55 and 66) which is the sum of Items 55 and 56. However, if Item 55 (Total Compensation Income/(Excess of Deductions) shows negative amount, simply copy the amount in Item 66. 68 Applicable Tax Rate For special rate, indicate special rate under (i.e., special rate/ existing laws. For example: PEZA 5% regular rate) For regular rate, indicate the applicable tax rate under Section 24 as shown below: If taxable income is: Not over P10,000 = 5% Over P10,000 but not over P30,000 = P500 + 10% in excess of P10,000 Over P30,000 but not over P70,000 = P2,500 + 15% in excess of P30,000 Over P70,000 but not over P140,000 = P8,500 + 20% in excess of P70,000 Over P140,000 but not over P250,000 = P22,500 + 25% in excess of P140,000 Over P250,000 but not over P500,000 = P50,000 + 30% in excess of P250,000 Over P500,000 = P125,000 + 32% in excess of P500,000 69 Income Tax Due Indicate the amount of tax due by multiplying the total taxable income (Item 67) by the applicable tax rate (Item 68). 70 Less: Share of Other Indicate the portion of the income tax Agencies computed under the special rate due to the other agencies. For example: 2% share of LGU for PEZA enterprise. 71 Income Tax Due to Indicate the difference between the income tax National Government due (Item 69) and share of other agencies under Special Rate (Item 70). Part VI Schedule 1 Gross Compensation Income and Tax Withheld (attach additional sheet/s, if necessary) 72 to 74 Names of Employer/s Write the name(s) of employer/s or employers if more than 1 during the taxable year. A/B/C/ Taxpayer Identification Write the TIN(s) of employer or employers if D/E Numbers (TINs) more than 1 during the taxable year. Compensation Income Write the compensation income or Taxpayer/Filer or Spouse compensation incomes of taxpayer/spouse, if more than 1 employers during the year. Tax Withheld Taxpayer/ Write the tax withheld or taxes withheld of Filer or Spouse taxpayer/spouse if more than 1 employers during the year. 75 Total Compensation Sum of the compensation income(s)/tax/es Income/Tax Withheld withheld of the taxpayer/spouse (Sum of Items 72 to 74). Schedule 2 Computation of Net Operating Loss Carry Over (NOLCO) 76 Gross Income Copy the amount of gross income in Item 60 77 Less: Total Deductions Copy the amount of regular allowable itemized Exclusive of NOLCO deductions in Item 63E/F/G/H & Deductions under Special Laws 78 Net Operating Loss Indicate the difference between Item 76 and Carry Over 77. Schedule 2A Computation of Available Net Operating Loss Carry Over (NOLCO) (attach additional sheet/s, if necessary) A schedule which is an integral part of the form detailing the computation of available NOLCO (applied and unapplied 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. 79 to 82 Net Operating Loss Indicate the year incurred in 79 to 82 and the Year Incurred amount in 79A to 82A for net operating loss. A/B/C/D/E A Amount Net Operating Loss Indicate the amount for net operating loss Carry Over carry over applied for the previous year (Items B Applied Previous Year 79B to 82B), applied for the current year C Applied Current Year (Items 79C to 82C) and the expired portion D Expired (Items 79D to 82D). E Net Operating Loss Indicate the unapplied amount of net operating (Unapplied) loss (Items 79E to 82E). Total (Sum of Items 79C, Write the sum of available net operating loss 83 80C, 81C & 82C) carry over applied to the current year (Sum of (to Item 63W/X/Y/Z) Items 79C, 80C, 81C & 82C) Schedule 3 Reconciliation of Net Income per Books Against Taxable Income (attach additional sheet/s, if necessary) 84 Net Income/(Loss) per Books Net Income(Loss) before Income Tax 85 Add: Other Taxable Indicate the amount of Non-operating Taxable Income/Non-deductible Income. For example: Interest income from Expenses advances to employees. Indicate the amount of non-deductible expenses. Example: Depreciation Expense arising from increase in valuation as a result of appraisal. Write the total amount of all non-deductible expenses and taxable other income under the appropriate column whether at the regular or special rate columns. For taxpayer subject to regular rate, fill up the regular/normal rate column with the non-deductible expenses such as: allowance for bad debts not actually written off, amortization and others which are not 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. For taxpayer subject to special rate, fill up the special rate column with the non-deductible expenses for tax purposes such as: administrative, marketing, selling, operating expenses or incidental losses during a given taxable period. Further, all other items considered as income for tax purposes should be added-back. 86 Total Item 84 less Item 85 = Item 86 87 Less: Total Non-taxable Example of non-taxable income: Retirement Income and Income benefits pursuant to Section 32(B)(6)(a). Subjected to Final Tax Example of income already subjected to final tax: Interest income from bank deposit wherein the 20% final tax was withheld by the bank. 88 Special Deductions Write the amount of special deductions such as deductions under the Adopt-a-School Program, free legal assistance, senior citizens discounts, etc. Indicate the sum of 63K & Q, 63L & R, 63M & S and/or 63N & T in the corresponding column of tax regime. 89 Total Sum of Items 87 and 88. 90 Net Income Indicate the resulting difference of the Total Income and Total Deductions (Item 86A less 89A/86B less 89B/86C less 89C/86D less 89D). This should equal the amount reflected as Net Income from Item 64C & 64D/64E & 64F. Part VII Details of Income Tax Incentives/Exemptions (attach additional sheet/s, if necessary) 91A to Certificate of Registration/ Write the registered activity/program as shown 97A BIR Ruling/MOA/Others in the registration certificate issued by the concerned IPA which granted the exemption/incentive/preferential tax rate, for example Board of Investment (BOI), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Cooperative Development Authority (CDA), Department of Foreign Affairs, etc. Indicate the registration number, if applicable. 91B to Legal Basis (Special Law/ Write the specific special law, international 97B R.A. No.) agreement or treaty which is the legal basis for the grant of the tax exemption/incentive/ preferential tax rate. For example, EO 226 Omnibus Investment Code, RA 7196 PEZA Law, in the case of regular/normal rate (special tax relief) RA 8525 Adopt-a-School Program or RA 9257 Senior Citizens Act, etc. 91C to Effectivity Date of Indicate the start date of the effectivity on the 97C Incentive Exemption grant of tax exemption/incentive/preferential From (MM/DD/YYYY) tax rate as shown in the certificate of registration issued by the concerned IPA by writing the month, day and year. For example: May 1, 2011 as the start date, write 05 01 2011. 91D to To (MM/DD/YYYY) Indicate the end date of the effectivity on the 97D grant of tax exemption/incentive/preferential tax rate as shown in the certificate of registration issued by the concerned IPA by writing the month, day and year. For example: April 30, 2014 as the end date, write 04 30 2014. 91E to Nature and Extent of For example: ITH 97E Incentive/Exemption 91F to Amount of Income Tax Indicate the regular income tax otherwise due 97F Payable under Regular by first getting the sum of special allowable 91G to Rate Taxpayer/Filer itemized deductions in Items 63I to 63T and 97G Spouse the net taxable income in Item 67, then multiply by the applicable tax rate (refer to tax table). 91H to Amount of Actual Income Copy the computed income tax due in Item 69. 97H Tax Paid 91I to Taxpayer/Filer 97I Spouse 91J to Amount of Tax Relief/ Difference between column F and column H/ 97J Savings Taxpayer column G and column I. 91K to Spouse 97K 98 Total Sum of Items 91J to 97J/91K to 97K which shall be forwarded to item 45 Part VIII For Estate and Trust (Engaged in Trade and Business) 99 to Name Indicate the Name/s of Heir/s or 101 Beneficiary/ies. 99A to Taxpayer Identification Indicate the TIN/s of Heir/s or Beneficiary/ies. 101A Number (TIN) 99B to Amount Write the amount of income payment/s to 101B heir/s or beneficiary/ies. 99C to Tax Withheld Write the amount of tax/es withheld from the 101C income payment/s to heir/s or beneficiary/ies. 102 Total Payment to Write the total income payment/s to the heir/s Heirs/Beneficiaries of the estate or to the beneficiaries of the trust. (Sum of Items 99B to 101B) Jurat Clause I declare under the penalties of perjury, that this annual return has been made in good faith, verified by me, and to the best of my knowledge and belief, is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof. 103 Name of the Taxpayer/ Portion requiring the signature of the taxpayer Authorized Representative/ or any person filing on his/her/its behalf such Accredited Tax Agent as his/her/its authorized representative or accredited tax agent (ATA) attesting to the truthfulness and correctness of the information contained in the return. Position and TIN of In case the return is filed by an authorized Authorized Representative/ representative, the TIN of the authorized ATA representative must be indicated and an authorization letter from the taxpayer must be attached. Tax Agent Accreditation All returns filed by an accredited tax agent on No./Atty's Roll No. behalf of a taxpayer shall bear the following (if applicable) Issue Date information: Date of Expiry A. For CPAs and others (individual practitioners and members of GPPs): a.1 TIN; and a.2 Certificate of Accreditation Number, Date of Issuance, and Date of Expiry (which is within three [3] years from date of expiry). B. For members of the Philippine Bar (individual practitioners and members of GPPs); a.1 TIN; and a.2 Attorney's Roll Number or Accreditation Number, if any. 104 to Community Tax Certificate Space to indicate the details of the Community 107 No. Place of Issue Tax Certificate issued by the Local Government Date of Issue Unit. Amount Part IX Supplemental Information (attached additional sheet/s, if necessary) Gross Income/Receipts Subjected to Final Withholding 108 Interest Refers to interest from any currency bank deposit and yield or any monetary benefit from deposit substitute and from trust funds and similar arrangements. 108A/ Actual Amount Write the actual amount of interest income. 108D 108B/ Final Tax Withheld/Paid Write the final tax withheld/paid. 108E 108C/ Exempt Write the amount of exempt interest income 108F which is the interest income from long-term deposit substitutes or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts and other investments evidenced by certificates prescribed by the BSP. 109 Royalties Refers to royalties, except on books, as well as other literary works and musical composition. 109A/ Actual Amount/Fair Market Write the actual amount of royalty 109C Value/Net Capital Gains income. 109B/ Final Tax Write the amount of tax withheld/paid 109D Withheld/Paid 110 Dividends Refers to Cash and/or Property Dividends actually or constructively received by an individual from a domestic corporation or from a joint stock company, insurance or mutual fund companies and regional operating headquarters of multinational companies, or on the share of an individual in the distributable net income after tax of a partnership (except GPP) of which he is a partner, or on the share of an individual in the net income after tax of an association, a joint account, or joint venture or consortium taxable as a corporation of which he is a member or co-venturer. 110A/ Actual Amount/Fair Market Indicate the actual amount of Cash Dividends 110C Value/Net Capital Gains or Fair Market Value of Property Dividends. 110B/ Final Tax Indicate the amount of final tax withheld/paid 110D Withheld/Paid based on zonal valuation of real property or FMV if goods or inventory. 111 Prizes and Winnings Refers to prizes [except P10,000 or less which is subject to the progressive rates under Section 24 (A) (1)] and winnings (except Philippine Charity Sweepstake and Lotto winnings) received by an individual. 111A/ Actual Amount/Fair Indicate the actual amount of prizes or 111C Market Value/ winnings, if the prize is cash or fair market Net Capital Gains value, if the prize is a real property like car or personal property like goods. 111B/ Final Tax Withheld/Paid Indicate the amount of final tax withheld/paid 111D based on zonal valuation of real property or FMV if goods or inventory. 112 Fringe Benefits Refers to any good, service or other benefit furnished or granted in cash or in kind by an employer to an individual employee (except rank-and-file employees). 112A/ Actual Amount/Fair Indicate the actual amount of the fringe 112C Market Value/ benefit, if the benefit is in cash or FMV of the Net Capital Gains fringe benefit, if the benefit is a real property like car or personal property like goods. 112B/ Final Tax Withheld/ Indicate the amount of final tax withheld based 112D Paid on zonal valuation of real property or FMV if goods or inventory. The formula of computing the final tax of Fringe Benefits Tax (FBT): Actual monetary value of expense account of P50,000.00 received by the CEO of the corporation, is to be divided by 68% to be multiplied by 32% in order to arrive to the Gross-up Monetary Value of the fringe benefit. 113 Compensation Subject Refers to Filipinos employed by Regional to 15% Preferential Operating Headquarters or Regional/Area Rate Headquarters in a managerial or technical position receiving an annual gross taxable compensation of at least P975,000.00. 113A/ Actual Amount/Fair Indicate the actual amount of the gross 113C Market Value/ compensation income (whether or not this Net Capital Gains actually received). 113B/ Final Tax Withheld/Paid Indicate the amount of final tax withheld/paid 113D Taxpayer/Filer on compensation income. 114 Sale/Exchange of Refers to the sale, exchange, or other Real Properties disposition of real property located in the Philippines, classified as capital assets, including pacto de retro sales and other forms of conditional sales, by individuals, including estates and trusts. 114A/ Description of Indicate whether the property is a land, 114H Property building and improvement, condominium. 114B/ OCT/TCT/CCT/ Indicate the OCT or TCT or CCT or the tax 114I Tax Declaration declaration number of the property issued by Number the city or municipal assessor. 114C/ Certificate Authorizing Indicate the CAR number issued by the BIR 114J Registration (CAR) who has jurisdiction over the real property Number sold/transferred. 114D/ Actual Amount/ Indicate the amount which is either the selling 114K Fair Market price or the current fair market value as 114F/ Value/Net Capital Gains determined in accordance with Section (6) of 114M the tax code, whichever is higher. 114E/ Final Tax Withheld/Paid Indicate the amount of final tax withheld/paid 114L (6% capital gains tax based on the selling price 114G/ or the zonal value whichever is higher). 114N 115 Sale/Exchange of Refers to the net capital gains realized during Shares of Stocks the taxable year from the sale, barter, exchange or other disposition of shares of stock in a domestic corporation, except shares sold, or disposed of through the PSE. 115A/ Kind of Stocks Indicate whether it is a common or preferred 115J or treasury stock. 115B/ Stock Certificate Indicate the Stock Certificate Series. 115K Series Number 115C/ Certificate Authorizing Indicate the CAR number issued by 115L Registration (CAR) Number the BIR who has jurisdiction over the seller of the stock certificate. 115D/ Number of Shares Indicate the number of Shares sold by a 115M corporation. 115E/ Date of Issue Indicate the date of the issuance of the shares 115N (MM/DD/YYYY) of stock sold by a corporation. 115F/ Actual Amount/Fair Market Indicate the actual amount of cash paid by the 115O Value/Net Capital Gains buyer while the FMV is the book value of the 115H/ shares of stock at the time of sale using the 115Q latest FS of the corporation. 115G/ Final Tax Withheld/Paid Indicate the amount of final tax withheld/paid. 115P 115I/ 115P 116 Other Income Subject to Refers to the income that cannot be Final Tax Under Sec. classified as cash/property dividend, interest 57 (A) of the Tax Code, on deposit substitute, royalty, prize or winning as amended (specify) that fall as Other Income subject to Final Tax under Section 57 (A). Example: Director's Fee. 116A Description Indicate the nature of income. 116B/ Actual Amount/ Indicate the actual amount of the income 116D Fair Market Value/ received. Net Capital Gains 116C/ Final Tax Withheld/Paid Indicate the final tax withheld/paid. 116E 117 Total Final Tax Write the total final tax withheld/paid by Withheld/Paid adding Items 108B-113B, 114E, 114L, 115G, 115P and 116C/108E, 109D-113D, 114G, 117A Taxpayer/Filer 114N, 115I, 115R and 116E. 117B Spouse Gross Income/Receipts Exempt from Income Tax 118 Proceeds of Life Insurance Refers to the proceeds of life insurance Policy policies paid to the heirs or beneficiaries upon the death of the insured, whether in a single sum or otherwise. Actual Amount/Fair Market Value Taxpayer/Filer 118A Spouse Indicate the actual amount received, as legal 118B heirs or beneficiaries, from the Insurance Company based on the Life Insurance 119 Return of Premium Refers to the amount received by the insured, as a return premiums paid by him under life insurance, endowment, or annuity contracts, either during the term or at the maturity of the term mentioned in the contract or upon surrender of the contract. 119A Actual Amount/Fair Indicate the actual amount received as a return Market Value of premium paid under the life insurance. 119B Taxpayer/Filer Spouse 120 Retirement Benefits, Refers to the retirement benefits received Pensions, Gratuities, etc. under RA 7641 or from the reasonable private benefit plan maintained by the employer; any amount received from the employer as a consequence of separation from the service because of death, sickness or other physical disability or for any cause beyond the control of the official/employee; benefits received from SSS or GSIS; benefits due or to become due to any person residing in the Philippines under the laws of the United States administered by the US Veterans Administration. 120A Actual Amount/Fair Indicate the actual amount received from 120B Market Value retirement benefits, pension and gratuities. Taxpayer/Filer Spouse 121 Personal/Real Refers to the property acquired by gift, Properties Received bequest, devise, or descent. thru Gifts, Bequests, and Devises 121A Description of Property Indicate whether the property is a land, building and improvement, condominium, car or cash 121B Mode of Transfer Indicate the mode of transfer either through donation or inheritance. 121C Certificate Authorizing Indicate the CAR number issued by Registration (CAR) the BIR who has jurisdiction over the Number real/personal property. 121D Actual Amount/Fair Indicate the actual amount received by the 121E Market Value donee in the case of gift and legal heirs in Taxpayer/Filer cases of bequests and devises, or the FMV/ Spouse book value of the shares of stock at the time of donation using the latest FS of the corporation or the zonal valuation of the real property at the time of donation or death of the decedent in case of bequests and devises. 122 Other Exempt Income/ Refers to exclusion from Gross Income pursuant Receipts Under Sec. 32 to Section 32 (B). They are compensation or (B) of the Tax Code, injuries, income exempt under Treaty like as amended (specify) the salary of a Filipino working in a foreign embassy based in the country. 122A Description Indicate the nature of exempt income/receipts. 122B Actual Amount/Fair Indicate the amount of income exempt under 122C Market Value Treaty like the salary of a Filipino working Taxpayer/Filer in a foreign embassy based in the country. Spouse 123 Total Income/Receipts Write the Total Income/Receipts Exempt from Exempt from Income by adding Items 118A-120A, 121D Income Tax and 122B/118B-120B, 121E and 122C). 123A Taxpayer/Filer 123B Spouse (A) Attachments . (1) Duly accomplished Account Information Form if the taxpayer's quarterly gross sales/earnings/receipts do not exceed P150,000.00; (2) Certificate of independent CPA and audited financial statements if the taxpayer's quarterly gross sales/receipts/earnings exceed P150,000.00; (3) Certificate of Income Tax Withheld on Compensation (BIR Form No. 2316); (4) Certificate of Income Payments not Subjected to Withholding Tax (BIR Form No. 2304); (5) Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307) issued by the income payor/s, on which basis the SAWT has been prepared; (6) Duly approved Tax Debit Memo (TDM) issued by the Bureau to be used for the payment of the tax due, if applicable; (7) Waiver of husband's right in favor of wife to claim additional exemptions, if applicable; (8) Proof of prior year's excess credits, if applicable; HacADE (9) Proof of foreign tax credits, if applicable; (10) Proof of payment and copy of previously filed return, if the return being accomplished is an amended return; (11) Authorization letter, in case the return is filed and signed by a representative on behalf of the taxpayer; (12) Proof of other payments/credits Waiver of husband in favor of wife to file consolidated income tax return; (13) Proof of tax payments in the first three (3) quarters; (14) Summary Alphalist Withholding Agents of Income Payments Subjected to Withholding Tax (SAWT) A summary list required to be submitted by the taxpayer in cases where tax credit is being claimed on the return. This summary list contains among others, total amounts of income/gross sales/gross receipts and claimed tax credits taken from all the Certificates of Creditable Withholding Tax at Source (BIR Form No. 2307) issued by the payors/withholding agents of the income. This summary list must contain all the information required and must be submitted in the format prescribed by Revenue Regulations No. 2-2006 and Revenue Memorandum Circular No. 3-2006; (15) Statement of Management's Responsibility (SMR) for Annual Income Tax Return; (16) Photocopy of the Tax Credit Certificate against which the TDM is drawn, if applicable; (17) Schedules of the following which must be part of the notes to the audited Financial Statements: (a) Sales/Receipts/Fees Nature of Sales Amount Sales from Goods/Properties Pxxxx Sales from Services Xxxx Lease from Properties Xxxx Fees from GPPs Xxxx Gross Sales/Receipts/Fees Pxxx Less: Sales returns and discounts (xxx) Sales/Receipts/Fees Pxxxx (b) Other Taxable Income Nature of Non-operating other Amount taxable income Xxxx Pxxxx Xxxx Xxxx Xxxx Total Other Taxable Income Pxxx (c) Cost of Sales (Trading/Manufacturing) Amount Beginning Inventory, Pxxxx Add: Purchases of Goods Xxxx Merchandise Available for Sale PXxxx Less: Ending Inventory (Xxxx) Cost of Sales Pxxx (d) Cost of Services Amount Direct charges on salaries, wages and Pxxx benefits Direct charges on materials, supplies, Xxx facilities Direct charges, on depreciation Xxx Direct charges on rental Xx Direct charges on outside services Xx Direct charges others Xx Cost of Services Pxxxx (e) Schedule of Taxes and Licenses Nature of Taxes and Licenses Amount xxxx Pxxxx xxx xxx xxx Total Taxes and Licenses Pxxxx (B) Deadline for Submission of Attachments . (1) Non-EFPS Taxpayers . For Non-EFPS taxpayers, these must submitted at the same time the return is filed. (2) EFPS Taxpayers . In the case of those EFPS taxpayers, these attachments must be submitted within fifteen (15) days from the filing of the return. Schedules 15 (a) to (e) shall be submitted using the e-submission facility of the Bureau. For those other attachments required to be physically submitted, the same shall be submitted with the printed copy of the e-filed return together with the Filing Reference Number in accordance with Revenue Memorandum Order No. 10-06. aETDIc (C) Penalty of Incomplete Submission of Attachments Failure to submit any of the attachments applicable to the taxpayer shall be imposed with a penalty in the amount/s provided for under the existing revenue issuances for each such failure provided that such failures during the calendar year shall not exceed P25,000 pursuant to Section 250 of the Code, as amended. BIR Form 1702 Primer Annual Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers Every corporation, partnership no matter how created or organized, joint stock companies, joint accounts, associations (except foreign corporation not engaged in trade or business in the Philippines and a joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations), government-owned or controlled corporations, agencies and instrumentalities shall render a true and accurate income tax return in accordance with the provisions of the Tax Code. The return shall be filed by the president, vice-president or other principal officer, and shall be sworn to by such officer and by the treasurer or assistant treasurer. Every general professional partnership (GPP) shall file this return setting forth the items of gross income and of deductions and the names, TINS, addresses and shares of each of the partners. As provided under Section 52 of the Tax Code, juridical persons mentioned above shall file an annual income tax return summarizing its gross income and deductions during the taxable year (calendar or fiscal) upon which income tax as provided in Title II of the Tax Code, as amended, shall be imposed which computed tax shall be decreased by the amount of tax previously paid or assessed during the preceding quarters. This Form is to be accomplished by the taxpayer in three (3) copies. The first two (2) copies upon filing will be submitted to BIR for its File and Encoding Copies while the third copy is retained by the taxpayer for its File Copy. This Form is required to be filed, whether or not, based on computation done in the return, the same results to an amount still due and payable to the Government. The following are the general instructions in accomplishing this Form: (1) All applicable spaces must be filled in; DTIACH (2) All information required by the Form must be written in capital fonts (CAPITAL LETTERS); (3) Mark with an "X" all applicable circles. (A) Contents and Instruction/Description of the Fields of Information/Data Required by the Form. Field Information/Data Instruction/Description No. Part I Background Information 1-2 For the O Calendar Mark the applicable circle with an "X". This O Fiscal refers to the accounting year (calendar or Year Ended fiscal year) employed by the taxpayer covering (MM/YYYY) the taxable year on which basis the annual income tax return is being accomplished. Calendar year means the twelve-month period beginning the month of January ending the month of December. Fiscal year means the twelve-month period beginning with any month other than the month of January. Indicate the month and the year covered by the return being filed. 3 Amended Return? Mark the applicable circle with an "X". This O Yes O No item shall indicate whether or not the tax return being accomplished and filed for the year is a correction or an amendment to a previously filed income tax return covering the same year. 4 Short Period Return? Mark the applicable circle with an "X". Short O Yes O No period return refers to return that is required to be filed by a juridical person whose period of filing is shorter than the expected 12-month period covered by the return either because that person has commenced operations during the interim period or is retiring from business with due notice given to the BIR. 5 Alphanumeric Tax Write the alphanumeric tax code which is Code (ATC) assigned by the Bureau upon registration IC 055 Minimum based on the tax type/tax rate and the nature Corporate Income of the business of the taxpayer. This ATC Tax (MCIT) O (refer to page 3) is required to be _____ ________ accomplished as this serves as a tool in the O Integrated Tax System (ITS) of the Bureau to sort data/information stored in the ITS database necessary to come up with statistical data and reports. Mark the applicable circle with an "X" if the taxpayer is subject to MCIT for this taxable period covered by this Form. A minimum MCIT of two percent (2%) of the gross income is imposed upon any domestic corporation and resident foreign corporation beginning on the fourth (4th) taxable year (whether calendar or fiscal year, depending on the accounting period employed) immediately following the taxable year in which such corporation commenced its business operation. The MCIT shall be imposed whenever the corporation has zero or negative taxable income or whenever the amount of MCIT is greater than the normal income tax due from such corporation. Any excess of the MCIT over the normal income tax shall be carried forward and credited against the normal income tax for the three (3) immediate succeeding taxable years. The computation and the payment of MCIT shall apply each time a corporate income tax return is filed, whether quarterly or annual basis. If the taxpayer is not subject to the MCIT, mark the applicable circle with an "X" and fill the space indicating the applicable ATC (refer to page 3) of the juridical person. 6 Taxpayer Identification Fill in the Taxpayer Identification Number Number (TIN) (TIN) issued to the taxpayer evidencing its registration with the Bureau. The TIN comprises of a nine to thirteen (9 to 13) digit numeric code where the first nine (9) digits is the TIN proper and the last four (4) digits is the branch code. The branch code shall always be 0000. 7 RDO Code Indicate the Revenue District Office Code, comprising of three (3) digits numeric or alphanumeric code, where the taxpayer's head office is registered. For example: 001 for Laoag City, 43A for East Pasig. 8 Date of Incorporation Write the taxpayer's date of incorporation (MM/DD/YYYY) indicating the month, day and year when the corporation has been incorporated as per Certificate of Registration issued by the Securities and Exchange Commission (SEC) and other regulatory agencies like Cooperative Development Authority, National Electrification Authority, etc. For example, if the date of incorporation is October 3, 2000, write 10 03 2000. 9 Taxpayer's Name Write the name of the taxpayer based on the Certificate of Registration (BIR Form No. 2303) issued by the BIR. 10 Registered Address Write the registered address of the principal Unit/Room Number/Floor place of business of the taxpayer. All Building Name applicable spaces must be filled in. Lot/Block/Phase/ Building Number Street Name Subdivision/Village Barangay Municipality/City Province Zip Code 11 Contact Number Write the telephone or cell phone number of the taxpayer where the taxpayer can be contacted in case there is a need to validate certain information/data contained in the return filed. 12 Email Address Write the official email address of the taxpayer wherein BIR will be able to communicate electronically in case there is a need to validate certain information/data contained in the return filed. 13 Line of Business Indicate the nature of the business the taxpayer is engaged in as indicated in the Certificate of Registration (BIR Form No. 2303). 14 Method of Deduction Mark the applicable circle with an "X" the O Itemized Deduction method of deduction employed by the O Optional Standard taxpayer in claiming the deductions for the Deduction (OSD) taxable year whether itemized or optional standard deduction. The chosen method of deduction used in the first quarter of the year shall be consistently applied throughout the year. NOTE: Accomplish Supplemental Form (Schedule 4 Tax Relief Under Special Law/International Tax Treaty), if taxpayer has multiple activities. Show the details of each and every registered activity and/or program on Section 1 of said Supplemental Form. In Section 2, indicate the type of tax regime per column (Exempt, Special Rate, Regular/Normal Rate) on page 1 and on the first three (3) columns of page 2. The sum of each tax regime shall be indicated in the appropriate total column of the concerned tax regime. Use additional sheet/s as needed. The aggregate sum for each tax regime of Schedule 4 (columns J, K and L) shall be forwarded/copied to applicable fields (columns A, B and C) in Part II and III of the Form. If there is only one activity per tax regime, fill in only Items 15, 15A to 15P, Part II and Part III of the Form. 15 Are you availing of Mark the applicable circle with an "X". The Tax Relief under yes circle is applicable to those who are Special or International availing of preferential tax rates/incentives Tax Treaty? and privileges/exemptions granted by special O No law, international agreement or treaty. If O Yes the answer to this query is yes, the taxpayer is required to fill in the specific details to indicate the required information/data to which the particular incentive/exemption/preferential tax rate is being availed. If yes, fill out All applicable spaces must be filled in under spaces below: the appropriate column whether Exempt, Special Rate, and/or Regular/Normal Rate (Special Tax Relief). 15A/B Investment Promotion Write the name of the investment promotion Agency (IPA) agency (IPA) which granted the exemption/ incentive/preferential tax rate. For example, Board of Investment (BOI), Philippine Economic Zone Authority (PEZA), Subic Bay Metropolitan Authority (SBMA), Cooperative Development Authority (CDA), Department of Foreign Affairs (DFA), etc. 15C/D/E Legal Basis Write the specific special law, international agreement or treaty which is the legal basis for the grant of the tax exemption/incentive/ preferential tax rate. For example, EO 226 Omnibus Investment Code, RA 7196 PEZA Law, in the case of regular/normal rate (special tax relief) RA 8525 Adopt-a-School Program or RA 9257 Senior Citizens Act, etc. 15F/G/H Registered Activity/ Write the registered activity/program as shown Program (Registration in the registration certificate issued by the Number) concerned IPA. Indicate the registration number, if applicable. 15I/J Special Tax Rate Write the preferential tax rate provided by specific special law, international agreement or treaty. Indicate 0.00% if exempt from tax and/or the special tax rate in the appropriate fields, for example, 5.00%, etc. 15K/L/M Effectivity Date of Indicate the start date of the effectivity on the Tax Relief grant of tax exemption/incentive/preferential From (MM/DD/YYYY) tax rate as shown in the certificate of registration issued by the concerned IPA by writing the month, day and year. For example: May 1, 2011 as the start date, write 05 01 2011. 15N/O/P To (MM/DD/YYYY) Indicate the end date of the effectivity on the grant of tax exemption/incentive/preferential tax rate as shown in the certificate of registration issued by the concerned IPA by writing the month, day and year. For example: April 30, 2014 as the end date, write 04 30 2014. Part II Computation of Tax (NOTE: The tax shall be computed per tax regime.) A Exempt; B Special Rate; C Regular/Normal Rate 16A/B/C Sales/Revenues/Receipts/ Write the amount of Sales/Revenues/ Fees (from Item 80J/K/L) Receipts/Fees (net of Sales Returns, Allowances and Discounts) during the taxable year from trade/business. 17A/B/C Less: Cost of Sales/ Indicate the amount of direct cost incurred in Services (from Item generating the sales from goods/services. 81J/K/L) 18A/B/C Gross Income from Write the difference between the Operation (Item 16 Sales/Revenues/Receipts/Fees and the Cost less Item 17) (from of Sales/Services which is Item 16A less 17A Item 82J/K/L) for Exempt, 16B less 17B for Special Rate and/or 16C less 17C for Regular/Normal Rate. For ECOZONES 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 financial enterprises, gross income shall include interest income, gains from sales and other income net of costs of funds. 19A/B/C Add: Other Taxable Indicate the amount/s of non-business income Income not Subjected which has not been subjected to final tax. to Final Tax (from Item 83J/K/L) 20A/B/C Total Gross Income Write the sum of gross income from operations (Sum of Items 18 and 19) and other taxable income not subjected to final (from Item 84J/K/L) tax which is Item 18A and 19A for Exempt, 18B and 19B for Special Rate, and 18C and 19C for Regular/Normal Rate. Less: Allowable A corporation shall choose either the itemized Deductions or optional standard deduction. Indicate the amount of allowable deductions pursuant to Section 34 of the Tax Code. Corporations may elect a standard deduction in an amount not exceeding forty percent (40%) of its gross income. Taxpayer shall signify its intention to elect the optional standard deduction (OSD) by marking with "X" the circle pertaining to OSD as the method of deduction chosen in Item 14. Such election when made in the first quarter shall be irrevocable for the taxable year for which the return is made. 21C Optional Standard Write the amount of computed OSD if the Deduction (40% from option to use OSD is exercised. The amount Item 20) (from Item of OSD is forty percent (40%) of the Gross 85J/K/L) Income. OR A corporation who availed of and claimed the OSD is still required to submit its financial statements when it files its annual tax return and to keep such records pertaining to its gross income. 22A/B/C Regular Allowable Indicate the amount of the allowable expenses Itemized Deduction incurred during the taxable year, if the method (from Item 86J/K/L) of deduction chosen is the itemized deduction method in Item 14. The regular allowable itemized deductions refer to 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, operations and/or conduct of trade and business. Itemized deductions also include interest, taxes, losses, bad debts, depreciation, depletion, charitable and other contributions, research and development and pension trust. 23A/B/C Special Allowable Indicate the amount of special allowable 23D/E/F Itemized Deduction itemized deduction as provided under the (specify) (from existing regular and special laws, rules and Item 87J/K/L/V/W/X) issuances such as, but not limited to, Rooming-in and Breastfeeding Practices under RA 7600, Adopt-a-School Program under RA 8525, Senior Citizen Act under RA 9257, Free Legal Assistance under RA 9999. 24B/C Allowance for NOLCO Write the amount of the applied portion of Net (from Item 57) Operating Loss Carry Over (NOLCO) computed in Item 57 of Part VI, Schedule 1A. 25A/B/C Total Itemized Deductions Indicate the sum of the regular and special (Sum of Items 22, 23 & allowable itemized deductions, and allowance 24) (from Item 89J/K/L) for NOLCO (Sum of Items 22A, 23A & 23D/ 22B, 23B, 23E, & 24B/22C, 23C, 23F & 24C) . 26A/B/C Net Taxable Income Indicate the amount of the net taxable income (Item 20 less Item 21 which is the difference between the total gross OR Item 25) (from income and optional standard deduction OR Item 90J/K/L) the difference between the total gross income and total itemized deductions. (For taxpayers who opted to avail of OSD Item 20C less 21C). For taxpayers who opted for itemized deductions Item 20A less 25A/20B less 25B/20C less 25C.) 27A/B/C Applicable Income For Exempt, indicate 0.00%. Tax Rate (i.e., special rate or regular/normal rate) For Special Rate, indicate special rate under existing laws. For example: PEZA 5.00% For Regular/Normal Rate, indicate the income tax rate of 30.00% 28A/B/C Income Tax Due Indicate the amount of tax due by multiplying other than MCIT the total taxable income (Item 26A/26B/26C) (Item 26 x Item 27) by the applicable tax rate (Item 27A/27B/27C). 29 Less: Share of Indicate the portion of the income tax Other Agencies computed under the special rate due to the other agencies. For example: 2% share of LGU for PEZA enterprise. 30 Net Income tax Due Indicate the difference between income tax to National Government due other than MCIT (Item 28B) and share of (Item 28B less Item 29) other agencies (Item 29). This refers to the share of the National Government in the income tax due under the Special Rate after deducting the share of other agencies i.e. , Local Government Unit. 31 MCIT Write the amount of MCIT computed at two (2% of Gross Income percent (2%) based on the Gross Income in Item 20C) written/indicated in Item 20C. 32 Income Tax Due Indicate whichever is higher between the (MCIT in Item 31 or MCIT in Item 31 and the normal income tax Normal Income Tax in other than MCIT in Item 28C. Item 28C, whichever is higher) 33 Less: Tax Credits/Payments This refers to the amount of tax credits/ (attach proof) payments during the year allowed to be deducted from the tax due. Proof is required to be attached. 33A Prior Years' Excess Indicate the excess payments/withholding in Credits Other than MCIT prior year/s which are carried forward in the current year and allowed to be applied against the income tax due other than MCIT. 33B Income Tax Payment Write the MCIT payments from the previous under MCIT from taxable quarter/s of the current year. Previous Quarter/s 33C Income Tax Payment under Write the amount of the regular income tax Regular/Normal Rate payments from the previous quarter/s of the from Previous Quarter/s current year. 33D Excess MCIT Applied Indicate the amount of the unapplied portion of this Current Taxable Year the MCIT payments from the previous year/s which can only be deducted if the normal income tax for the current year is higher than the computed MCIT for the same year. 33E/F Creditable Tax Write the amount of the creditable income tax Withheld from withheld by payor/s on the income payments Previous Quarter/s made to the taxpayer in the previous taxable quarter/s of the current year. 33G/H Creditable Tax Withheld Write the creditable income tax withheld by per BIR Form No. payor/s on the income payments made to the 2307 for the Fourth taxpayer in the fourth (4th) quarter of the Quarter current year. Attach BIR Form No. 2307 issued by the payor/s. 33I/J Foreign Tax Credits, Indicate the amount of income tax payments if applicable to foreign government/s on income earned abroad reported in this Form in Item 16 or Item 19. Attach proof of income tax payments to foreign government/s. 33K/L Tax Paid in Return Indicate the amount of income tax paid in the Previously Filed, if this previous return filed. Attach the previous is an Amended Return return filed and proof of income tax payment. 33M Income Tax Payment Write the income tax payments in the previous under Special Rate quarter/s under the tax regime of Special Rate. from Previous Quarter/s 33N Special Tax Credits Write the special tax credit granted to taxpayer (from Item 44) by virtue of a specific special law, (from Item 103J/K/L) international agreement or tax treaty. For example: 50% of training expenses under RA 7916. 33O/P Other Credits/ Indicate the amount/s of any other payments/ Payments, specify tax credits allowed to be applied against the _____ tax due. 33Q/R Total Credits/Payments Write the amount of the total of all the (Sum of Items 33E, G, I, payments/credits claimed. (Sum of Items 33E, K, M, N & O/33A, G, I, K, M, N & O/33A, B, C, D, F, H, J, L & P) B, C, D, F, H, J, L & P) 34A/B Net Tax Payable/ Indicate the difference between the tax due (Overpayment) (Item 30 (Item 30/32) and the total payments/credits less Item 33Q/Item (Item 33Q/33R). 32 less Item 33R) 35 Aggregate Tax Payable/ Indicate the sum of income tax payable for (Overpayment) (Sum Special (34A) and Regular/Normal (34B) of Item 34A & 34B) Rates. 36 Add: Penalties Indicate the amounts which are additions to the tax that serve as civil penalties imposed 36A Surcharge upon the taxpayer in cases of violations committed with respect to the filing of the 36B Interest income tax return and/or payment of the tax due thereon. 36C Compromise 36D Total Penalties (Sum of Items 36A, 36B & 36C) There shall be imposed and collected as part of the tax: 1. A surcharge of twenty five percent (25%) for each of the following violations: a) Failure to file 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 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 assessment. 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 of a false or fraudulent return is filed. 3. 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. 4. Compromise Penalty, pursuant to existing/applicable revenue issuances. 37 Total Amount Payable/ Write the total amount of tax payable/ (Overpayment) (Sum (overpayment) after adding the penalties of Item 35 and 36D) enumerated in Item 36, if any. If overpayment, mark An excess of the total tax credits/payments X one circle only over the actual income tax due computed in (once the choice is made, the final adjusted return may be refunded or the same is irrevocable) with the Tax or issued with the Tax Credit O To be refunded issued Certificate to the taxpayer or credited O To be issued against its estimated income tax liabilities for a Tax Credit the quarters of the succeeding taxable years. Certificate (TCC) The taxpayer shall exercise its option by o To be carried over marking with an "X" the appropriate circle, as tax credit which option shall be considered irrevocable for next year/quarter for that taxable period. Thus, once the taxpayer opted to carry-over 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. Part III Tax Relief Availment per Tax Regime 38A/B/C Regular Income Tax Indicate the regular income tax otherwise due Otherwise Due by first getting the sum of special allowable (30% of the Total itemized deductions in Item 23 and the net of Item 23 & 26) taxable income in Item 26, then multiply by (from item 97J/K/L) the normal corporate tax rate of 30.00%. 39A/B/C Less: Income Tax Due Copy the computed income tax due in Item 28. (from Item 28) (from Item 98J/K/L) 40A/B/C Tax Relief Availment Indicate the difference between regular Before Special Tax Credit income tax otherwise due in Item 38 and (Item 38 less Item 39) income tax due in Item 39. (from Item 99J/K/L) Breakdown of Item 40 The sub-total (Item 43) should equal to Item 40 41A/B/C Tax Relief Availment Indicate the resulting tax relief availment on on Gross/Net Income gross/net income by first multiplying the net (Item 26 x 30% less taxable income in Item 26 by the normal Item 28) (from corporate tax rate of 30.00% and then, Item 100J/K/L) deducting the computed income tax due in Item 28. 42A/B/C Tax Relief on Special Indicate the resulting tax relief on special Allowable Itemized allowable itemized deductions by multiplying Deductions the total special allowable itemized deductions (Item 23 x 30%) in Item 23 by the normal corporate tax rate of (from Item 101J/K/L) 30.00%. 43A/B/C Sub Total on Item 41 Indicate the sum of Items 41 and 42. & 42 which is equal to Item 40 (from Item 102J/K/L) 44B/C Special Tax Credit Copy the amount in Item 33N. (from Item 103J/K/L) 45A/B/C Total Tax Relief Indicate the sum of Items 43 and 44. Availment (Sum of Items 43 & 44) (from Item 104J/K/L) Part IV Details of Payment A Drawee Bank/Agency Space to indicate the details of the payment B Number and the mode of payment (whether by C Date (MM/DD/YYYY) cash/bank debit memo, check, TDM, others) D Amount identifying the drawee bank/agency; number, if any; date; and amount. Only the applicable spaces must be filled in. 46 Cash/Bank Debit Memo For cash payment, indicate the amount in column 46D and write "N/A" (Not Applicable) in columns A, B and C. For Bank Debit Memo (BDM), indicate the name of the bank, number, date of BDM and amount in the appropriate columns (A, B, C and D). 47 Check Indicate the name of drawee bank, check number, date of check and amount in the appropriate columns (A, B, C and D). 48 Tax Debit Memo Indicate the Tax Debit Memo (TDM) number, date and amount in the appropriate columns (A, B and C). 49 Others Specify other modes of payment. Indicate N/A or fill in appropriate columns, if applicable. Ex. Special Allotment Release Order (SARO) Tax Subsidy Debit Memo (TSDM) Tax Remittance Advice (TRA) Tax Subsidy Availment Certificate (TSAC) Direct Crediting Receiving Portion Space provided only for stamping and affixing the initials of the revenue officer or Stamp of Receiving Office/ bank teller, as the case may be, evidencing the AAB and Date of Receipt date of receipt of the return from the (RO's Signature/Bank taxpayer/authorized representative. Teller's Initial) Schedule 1 Computation of Net Operating Loss Carry Over A schedule which is an integral part of the form detailing the computation of Net Operating Loss Carry Over (NOLCO) and the amount of NOLCO claimed in the taxable year. 50 Gross Income Copy the amount of gross income in Item 18B/C. 51 Less: Total Deductions Copy the amount of regular allowable itemized exclusive of NOLCO & deductions in Item 22B/C. Deductions under Special Laws 52 Net Operating Loss Indicate the difference between Item 50 and 51. Carry Over (to Schedule 1A) Schedule Computation of A schedule which is an integral part of the 1A Available Net form detailing the computation of available Operating Loss Carry NOLCO (applied and unapplied portion). Only Over (NOLCO) net operating losses incurred by the qualified (attach additional sheet/s, taxpayer may be carried over to the next three if necessary) (3) immediately succeeding taxable years following the year of such loss. 53-56 Net Operating Loss Indicate the year incurred (Items 53-56) and A/B/C/D/ Year Incurred the amount (53A-56A) for net operating loss. E A Amount Net Operating Loss Indicate the amounts for net operating loss Carry Over carry over applied for the previous year (Items B Applied Previous Year 53B-56B), applied for the current year (Items C Applied Current Year 53C-56C) and the expired portion (Items 53D- D Expired 56D). E Net Operating Loss Indicate the unapplied amount of net operating (Unapplied) loss (Items 53E-56E). 57 Total (Sum of Items 53C, Write the sum of available net operating loss 54C, 55C & 56C) carry over applied to the current year (Sum of (to Item 24) Items 53C, 54C, 55C & 56C). Schedule 2 Computation of Excess Minimum Corporate Income Tax (MCIT) of Previous Year A schedule which is an integral part of the form detailing the computation of Excess Minimum Corporate Income Tax (MCIT) of previous year. 58-61 Year Indicate the taxable year covered by the MCIT. Normal Income Write the amount of normal income tax (as Tax as adjusted adjusted) for the appropriate taxable year. MCIT Write the amount of MCIT for the appropriate taxable year. Excess MCIT over Indicate the amount of excess MCIT which is Normal Income the difference between normal income tax (as Tax as adjusted adjusted) and MCIT for the appropriate taxable year. Balance MCIT still Write the amount of the balance MCIT still allowable as allowable as tax credit for the appropriate Tax Credit taxable year. Expired/Used Portion of Excess MCIT Excess MCIT Applied Write the amount of the expired/used portion this Current of excess MCIT for the appropriate taxable Taxable Year year. Indicate the amount of excess MCIT applied this current taxable year. Schedule 3 Reconciliation of Net Income Per Books Against Taxable Income (attach additional sheet/s, if necessary) A schedule which is an integral part of the form showing 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. A Special Rate B Regular/Normal Rate 62A/B Net Income/(Loss) Indicate the net income (loss) per books of per Books accounts for the current year. 63A/B Add: Non-deductible Write the total amount of all non-deductible 64A/B Expenses/Taxable expenses and taxable other income under the Other Income appropriate column whether at the regular or special rate columns. For taxpayer subject to regular rate, fill up the regular/normal rate column with the non- deductible expenses such as: allowance for bad debts not actually written off, amortization and others which are not 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. For taxpayer subject to special rate, fill up the special rate column with the non-deductible expenses for tax purposes such as: administrative, marketing, selling, operating expenses or incidental losses during a given taxable period. Further, all other items considered as income for tax purposes should be added-back. 65A/B Total (Sum of Items Indicate the total of Item 62 and 63. 62, 63 & 64) 66A/B Less: Non-taxable Write the total amount of all non-taxable 67A/B Income and Income income and income already subjected to final Subjected to Final Tax Withholding Tax, including those income which are specifically considered not taxable under special laws and Tax Code. 68A/B Special Deductions Write the amount of special deductions such 69A/B as additional deductions under the "Adopt-a- School Program." 70A/B Total (Sum of Items Indicate the total of Items 66, 67, 68 and 69. 66, 67, 68 & 69) 71A/B Net Taxable Income/(Loss) Indicate the difference between Item 65 and (Item 65 less Item 70) 70. Jurat Clause We declare under the penalties of perjury, that this annual return has been made in good faith, verified by us, and to the best of our knowledge and belief, is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority thereof. 72 President/Vice President/ Portion requiring the signature of the taxpayer Principal Officer/ or any person filing on his/her/its behalf such Accredited Tax Agent as his/her/its authorized representative or (Signature over Printed accredited tax agent (ATA) attesting to the Name) truthfulness and correctness of the Title/Position of Signatory information contained in the return. TIN of Signatory The return shall be filed by the president, vice- Tax Agent Accreditation president or other principal officer, and shall No./Atty's Roll be sworn to by such officer and by the No. (if applicable) treasurer or assistant treasurer. Date of Issuance In case the return is filed by an authorized Date of Expiry representative, the TIN of the authorized representative in the organization or business 73 Treasurer/Assistant of the taxpayer must be indicated. All returns Treasurer (Signature filed by an accredited tax agent on behalf of a over Printed Name) taxpayer shall bear the following information: Title/Position of Signatory A. For CPAs and others (individual practitioners and members of GPPs): TIN of Signatory a.1 TIN; and a.2 Certificate of Accreditation Number, Date of Issuance, and Date of Expiry (which is within three [3] years from date of expiry). B. For members of the Philippine Bar (individual practitioners and members of GPPs); a.1 TIN; and a.2 Attorney's Roll Number or Accreditation Number, if any. Community Tax Certificate Space to indicate details of Community Tax Number Certificate issued by the Local Government Place of Issue indicating the place and date of issue, and the amount. Date of Issue (MM/DD/YYYY) Amount LIST OF ATTACHMENTS (1) Certificate of Independent CPA duly accredited by the BIR (The CPA Certificate is required if the quarterly gross sales, earnings, receipts or output exceed P150,000). ETHIDa (2) Supplemental Form (Schedule 4) for taxpayers with multiple activities/programs per tax regime (exempt, special, regular/normal rate). (3) Duly Accomplished Account Information Form (AIF) and/or Financial Statements (FS) including the following schedules prescribed under existing revenue issuances which must form part of the Notes to the Audited FS: a) Sales/Receipts/Fees Schedule of Sales/Receipts/Fees Nature of Sales Amount Sales from Goods/Properties Pxxxx Sales from Services xxxx Lease from Properties xxx Fees from GPPs xxxx Gross Sales/Receipts/Fees Pxxxx Less: Sales returns and discounts (xxx) Sales/Receipts/Fees Pxxxx b) Cost of Sales/Services Schedule of Cost of Sales (Trading/Manufacturing): Nature of Cost of Sales Amount Beginning Inventory, Pxxxx Add: Purchases of Goods xxx Merchandise Available for Sale Pxxxx Less: Ending Inventory (xxxx) Cost of Sales Pxxxx Schedule of Cost of Services: Nature of Cost of Services Amount Direct charges on salaries, wages and Pxxx benefits Direct charges on materials, supplies, xxx facilities Direct charges on depreciation xxx Direct charges on rental xx Direct charges on outside services xx Direct charges others xx Cost of Services Pxxxx c) Non-Operating and Taxable Other Income Schedule of Non-Operating and Other Taxable Income: Nature of Non-Operating and Taxable Amount Other Income xxxx Pxxxx xxx xxx xxx Total Non-Operating and Other Taxable Pxxxx Income d) Taxes and Licenses Schedule of Taxes and Licenses Nature of Taxes and Licenses Amount xxxx Pxxxx xxx xxx xxx Total Taxes and Licenses Pxxxx e) Other information prescribed to be disclosed in the Notes to FS. (4) Statement of Management's Responsibility (SMR) for Annual Income Tax Return. (5) Certificate of Income Payments Not Subjected to Withholding Tax (BIR Form No. 2304). (6) Certificate of Creditable Withholding Tax at Source (BIR Form No. 2307). (7) Duly approved Tax Debit Memo (TDM) issued by the Bureau to be used for the payment of the tax due, if applicable. Attach photocopy of the Tax Credit Certificate against which the TDM is drawn, if applicable. (8) Proof of prior years' excess credits, if applicable. Attach prior year's tax return, if applicable. (9) Proof of Foreign Tax Credits, if applicable. (10) For amended return, proof of tax payment and copy of previously filed return. Proof of other payments/credits. (11) Certificate of Tax Treaty Relief/Entitlement issued by the concerned Investment Promotion Agency (IPA). (12) Summary Alphalist Withholding Agents of Income Payments Subjected to Withholding Tax (SAWT), if applicable. A summary list required to be submitted by the taxpayer in cases where tax credit is being claimed on the return. This summary list contains among others, total amounts of income/gross sales/gross receipts and claimed tax credits taken from all the Certificates of Creditable Withholding Tax at Source (BIR Form No. 2307) issued by the payors/withholding agents of the income. This summary list must contain all the information required and must be submitted in the format prescribed by Revenue Regulations No. 2-2006 and Revenue Memorandum Circular No. 3-2006. TCADEc (13) Proof of other tax payment/credit, if applicable. Attach proof of tax payments in the first three (3) quarters, if any. (14) Schedule of returns filed by General Professional Partnership (GPP). Name of Partner TIN Address Share in the Net Income of the GPP Deadline for Submission of Attachments (1) Non-EFPS Taxpayers . For Non-EFPS taxpayers, these must be submitted at the same time the return is filed. (2) EFPS Taxpayers . In the case of those EFPS taxpayers, these attachments must be submitted within fifteen (15) days from the filing of the return. Schedules 15 (a) to (e) shall be submitted using the e-submission facility of the Bureau. For those other attachments required to be physically submitted, the same shall be submitted with the printed copy of the e-filed return together with the Filing Reference Number in accordance with Revenue Memorandum Order No. 10-06. Penalty of Incomplete Submission of Attachments Failure to submit any of the attachments applicable to the taxpayer shall be imposed with a penalty in the amount/s provided for under the existing revenue issuances for each such failure provided that such failures during the calendar year shall not exceed P25,000 pursuant to Section 250 of the Code, as amended. <ftp://ftp.bir.gov.ph/webadmin1/pdf/69395RMC%20No%2026-2013.pdf> last visited April 2, 2013.