New Income Tax Forms

January 24, 2014 REVENUE REGULATIONS NO. 02-14 SUBJECT : New Income Tax Forms TO : All Revenue Officials, Employees and Others Concerned SECTION 1. Objective . These Revenue Regulations are issued to prescribe the new BIR forms that will be used for income tax returns (ITRs) filing covering and starting the taxable year ended December 31, 2013. SECTION 2. Scope . Pursuant to Section 244, in relation to Sections 6 (H), 51 (A) (1) and 51 (A) (2) of the National Internal Revenue Code of 1997 (Tax Code), as amended, these Regulations are issued to prescribe the use of revised income tax forms with bar codes, and to reflect the changes in information required from said forms. This will also enable the said forms to be read by an optical character reader (OCR) for ease in scanning. SECTION 3. Filing of New ITR Forms . All taxpayers required to file their ITRs under Section 51 (A) (1) of the Tax Code and those not required to file under Section 51 (A) (2) but who opted to do so, covering and starting taxable year ended December 31, 2013 shall use the applicable forms as follows: EcHAaS 1. BIR Form No. 1700 version June 2013 (Annual Income Tax Return for Individuals Earning Purely Compensation Income); 2. BIR Form No. 1701 version June 2013 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts); 3. BIR Form No. 1702-RT version June 2013 (Annual Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers Subject Only to the REGULAR Income Tax Rate); 4. BIR Form No. 1702-EX version June 2013 (Annual Income Tax Return for Use Only by Corporations, Partnerships and Other Non-Individual Taxpayers EXEMPT Under the Tax Code, as amended, [Sec. 30 and those exempted in Sec. 27 (C) ] and Other Special Laws, with NO Other Taxable Income); and 5. BIR Form No. 1702-MX version June 2013 (Annual Income Tax Return for Corporations, Partnerships and Other Non-Individuals with Mixed Income Subject to Multiple Income Tax Rates or with Income Subject to Special/Preferential Rate) SECTION 4. Rounding Off to the Nearest Peso in the ITR . The requirement for entering centavos in the ITR has been eliminated. If the amount of centavos is 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 ( e.g. , P100.50 = P101.00). EACIaT SECTION 5. Mandatory Itemized Deductions . A. Corporations, partnerships and other non-individuals are mandated to use the itemized deductions in the following cases: 1. Those exempt under the Tax Code, as amended [Section 30 and those exempted under Section 27 (C)] and other special laws, with no other taxable income; 2. Those with income subject to special/preferential tax rates; and 3. Those with income subject to income tax rate under Sections 27 (A) and 28 (A) (1) of the Tax Code, as amended, and also with income subject to special/preferential tax rates. Juridical entities whose taxable base is the gross revenue or receipts ( e.g. , non-resident foreign international carriers) are not entitled to the itemized deductions nor to the optional standard deduction (OSD) under Section 34 (L) of the Tax Code, as amended. B. Individual taxpayers who are not entitled to avail of the OSD and thus use only the itemized deduction method are as follows: 1. Those exempt under the Tax Code, as amended, and other special laws with no other taxable income [ e.g., Barangay Micro Business Enterprise (BMBE)]; 2. Those with income subject to special/preferential tax rates; and CEaDAc 3. Those with income subject to income tax rate under Section 24 of the Tax Code, as amended, and also with income subject to special/preferential tax rates. SECTION 6. Transitory Provisions . Taxpayers who filed using old forms for their 2013 ITRs (manual and/or electronic) must re-file using the new income tax forms upon their availability. SECTION 7. Repealing Clause . All existing regulations and other issuances or portions thereof which are inconsistent with the provisions of these Regulations are hereby repealed, amended, or modified accordingly. SECTION 8. Effectivity . These Regulations shall take effect starting the taxable year ended December 31, 2013 and after fifteen (15) days following publication in two (2) newspapers of general circulation. (SGD.) CESAR V. PURISIMA Secretary of Finance Recommending Approval: (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue ATTACHMENT BIR Form No. 1700 - Annual Income Tax Return For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Income) Guidelines and Instructions for BIR Form No. 1700 June 2013 (ENCS) Annual Income Tax Return For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Income) These instructions are designed to assist tax filers, or their representatives, with the preparation of the annual income tax return (ITR). If there are questions which are not adequately covered, please consult the local BIR office. If there appears to be any discrepancies between these instructions and the applicable laws and regulations, the laws and regulations take precedence. CTacSE Who Shall File This return shall be filed by every resident citizen deriving compensation income from all sources, or resident alien and non-resident citizen with respect to compensation income from within the Philippines, except the following: 1. An individual whose gross compensation income does not exceed his total personal and additional exemptions. 2. An individual with respect to pure compensation income, as defined in Section 32 (A) (1) derived from sources within the Philippines, the income tax on which has been correctly withheld (tax due equals tax withheld) under the provisions of Section 79 of the Code: Provided, that an individual deriving compensation concurrently from two or more employers at any time during the taxable year shall file an income tax return. 3. An individual whose income has been subjected to final withholding tax (alien employee as well as Filipino employee occupying the same position as that of the alien employee of regional or area headquarters and regional operating headquarters of multinational companies, petroleum service contractors and sub-contractors, and offshore banking units; non-resident alien not engaged in trade or business). 4. A minimum wage earner or an individual who is exempt from income tax. Married individuals shall file a single return for the taxable year to include the income of both spouses, separately computing their individual income tax based on their respective taxable income, which return shall be signed by the tax filer or the spouse, or their authorized representative. Where it is impracticable for the spouses to file one return, each spouse may file a separate return. aHSAIT Individuals not required to file an ITR or those qualified for substituted filing may voluntarily file this return for purposes of loans, foreign travel requirements, and for other purposes they may deem proper. Employers are required to submit Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) to the Revenue District Office (RDO) where registered on or before February 28 of the following year. However, individuals other than those solely earning income as Overseas Filipino Workers (OFWs) as defined in RR No. 1-2011 availing of the benefits of special laws, such as, but not limited to the Personal Equity and Retirement Account Act (PERA Act) under RA 9505, are required to file an ITR. This return shall likewise be used by individuals earning other taxable income from non-business/non-profession. "Minimum Wage Earner" shall refer to a worker in the private sector paid the statutory minimum wage or to an employee in the public sector with compensation income of not more than the statutory minimum wage in the non-agricultural sector where he/she is assigned. The term "individual whose compensation income has been subjected to final withholding tax" shall include aliens or Filipino citizens occupying the same positions as the alien employees, as the case may be, who are employed by regional operating headquarters, regional or area headquarters, offshore banking units, petroleum service contractors and sub-contractors, pursuant to pertinent provisions of Sections 25 (C), (D), (E) and 57 (A), including those subject to Fringe Benefits Tax (FBT) under Section 33 of the Tax Code, as amended, Republic Act No. 8756, Presidential Decree No. 1354, and other pertinent laws. HAaDcS When and Where to File and Pay A. For Electronic Filing and Payment System (eFPS) Tax Filers : The return shall be e-filed and the tax shall be e-paid on or before the 15th day of April of each year covering income of the preceding taxable year using the eFPS facilities thru the BIR website www.bir.gov.ph . B. For Non-Electronic Filing and Payment System (Non-eFPS) Tax Filers : The return shall be filed and the tax shall be paid on or before the 15th day of April of each year covering income of the preceding taxable year with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the RDO where the tax filer is registered. In places where there are no AABs, the return shall be filed and the tax shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO. Non-eFPS tax filer may opt to use the electronic format under "eBIRForms" (refer to www.bir.gov.ph ) for the preparation, generation and submission and/or payment of this return with greater ease and accuracy, upon availability of the same in the system. FOR NO PAYMENT RETURNS: This shall be filed with the RDO where the tax filer is registered or with the concerned RCO under the same RDO. FOR INSTALLMENT PAYMENT: When the tax due exceeds P2,000, the tax filer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment, on or before July 15 of the same year. FOR NON-RESIDENT TAX FILER: In case tax filer has no legal residence or place of business in the Philippines, the return shall be filed with the Office of the Commissioner thru RDO No. 39, South Quezon City. CAIaHS How to Accomplish the Form 1. Enter all 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 tax filer; 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, there is no need to leave blank after the comma or period. Do NOT write "NONE" or make any other marks in the box/es. For Items 1 to 4 Item 1 Indicate the taxable year covered by the return being filed; Item 2 Choose "Yes" if the tax return is one amending previous return filed, "No" if not; cDAISC Item 3 Indicate whether the tax filer and spouse are filing jointly or not; and Item 4 Indicate whether the source of income is compensation income or other income (non-business/non-profession). Part I Background Information Item 5 Taxpayer Identification Number (TIN) : Enter the tax filer's TIN. Spouse's TIN is entered in Item 17. If no TIN, apply for one before filing using Application for Registration-For Individuals Earning Purely Compensation Income and Non-Resident Citizens/Resident Alien Employee (BIR Form No. 1902). Item 6 RDO Code : Enter the appropriate code for RDO per BIR Form No. 1902 and/or Certificate of Update of Exemption and of Employer's and Employee's Information (BIR Form No. 2305). Item 7 Philippine Standard Occupational Classification (PSOC) Code : Refer to www.bir.gov.ph for applicable PSOC or visit the local BIR Office. Item 8 Tax Filer's Name : Print name as it was entered on the registration forms. Item 9 Registered Address : This refers to the preferred address ( i.e., residence or employer's business address) provided by the tax filer upon registration with the BIR. If tax filer has moved since the previous filing and has NOT updated the registration, accomplish Table 1 on the last page of this ITR. Items 10-12 : Enter the requested information. If no email address, leave the space blank. Item 13 Civil Status : Indicate civil status. CIETDc Items 14 & 15 Additional Exemption for Qualified Dependent Children : 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 exemptions 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 tax filer 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 "yes" is marked for Item 14, enter the number of Dependent Children in Item 15, and then provide the required information for each child in Table 2. Should there be additional dependent(s) during the taxable year, tax filer may claim the corresponding additional exemption, as the case may be, in full for such year. If the tax filer 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, becomes twenty-one (21) years old or becomes gainfully employed during the taxable year, the tax filer may still claim the same exemptions as if the spouse or any of the dependents died, or as if such dependents married, became twenty-one (21) years old or became employed at the close of such year. Items 16-22 Spouse's Background Information : Enter the appropriate information using the same guidelines as above. aDSTIC Part II Total Tax Payable Items 23-31 : Accomplish first Part IV Computation of 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. Signature Line : When all pages of the return are complete, sign the return in the place indicated, enter the number of pages filed. In Items 32-35, provide the required information about tax filer's Government Issued ID and its details. Part III (Item 36) Details of Payment Enter the information required and then file the original ITR plus two (2) copies to any AAB within the RDO where registered. Refer to www.bir.gov.ph for the applicable AAB or visit the local BIR Office. For no payment returns, proceed with filing the ITR with the RDO where the tax filer is registered or the concerned RCO under the same RDO. Part IV Computation of Tax At the top of this page and in all succeeding pages that are to be filed, enter tax filer's TIN and Last Name. The requirement for entering centavos on the ITR has been eliminated. If the amount of centavos is 49 or less, drop down centavos ( e.g., P100.49 = P100.00). If the amount is 50 centavos or more, round up to the next peso ( e.g., P100.50 = P101.00) IHCSTE Items 1-4 : Enter the required information for each of the employers and mark whether the information is for the Tax filer or the Spouse. Attach additional sheets, if necessary. On Item 4A, enter the Total Gross Compensation and Total Tax Withheld for the Tax Filer. On Item 4B, enter the appropriate information for the Spouse. Item 5 Non-Taxable/Exempt Income : This includes enumerations under Sections 32B of the NIRC, as amended, and other applicable rules and regulations, including De Minimis Benefits within the limitations prescribed under existing revenue issuances. Item 6 Gross Taxable Compensation Income : This refers to Item 4A.1 or 4B.1 less the Non-Taxable/Exempt Income in Item 5. The Gross Taxable Compensation Income does not include employees' contributions to SSS, GSIS, HDMF, PHIC and Union Dues. Refer to BIR Form No. 2316 issued by the employer/s. Item 7 Premium Payment on Health 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 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 this deduction. Items 8 & 9 Personal and Additional Exemptions : 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. HCTAEc 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. Items 10, 11, 13 & 14 : Calculate as indicated on the form. Item 12 Other Taxable Income : Any non-business/non-profession related income reported under "other taxable income" should reflect only the taxable amount. Example: Honorarium received not in the practice of business or profession by an employee other than from his employer . Items 15-20 Computation of Tax Credits/Payments : Enter the applicable amounts in the Tax filer and/or Spouse column. On Item 20 calculate the Net Tax Payable. Attach proof on income received and credits claimed, e.g., BIR Form No. 2316. Over withholding of income tax on compensation shall be refunded by the employer, except if the over withholding is due to the employee's failure or refusal to file BIR Form No. 2305, or supplies false or inaccurate information, the excess shall not be refunded but shall be forfeited in favor of the government. Item 21 Net Tax Payable (Overpayment) for Tax Filer and Spouse : This is the aggregate amount of Tax Payable (Overpayment) for both Tax Filer and Spouse. Item 22 Portion of Tax Payable Allowed for 2nd Installment : Indicate the amount applicable. Items 23, 27 & 28 : Calculate as indicated in the form. EIAHcC Penalties shall be imposed and collected as part of the tax Item 24 : A surcharge of twenty five percent (25%) for each of the following violations: 1. Failure to file any return and pay the amount of tax or installment due on or before the due date; 2. 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; 3. 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; 4. Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment. A surcharge of fifty percent (50%) of the 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 fraudulent return is filed. Item 25: Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid. Item 26: Compromise penalty pursuant to existing/applicable revenue issuances. EcTDCI Part V Supplemental Information Fill-up applicable fields. "Fair Market Value" as determined in accordance with the Tax Code, as amended, and existing revenue issuances shall be used in reporting the non-cash income and receipts in the Supplemental Information. Required Attachments : 1. Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316). 2. Waiver of the husband's right to claim additional exemption, if applicable. 3. Duly approved Tax Debit Memo, if applicable. 4. Proof of Foreign Tax Credits, if applicable. 5. For amended return, proof of tax payment and the return previously filed. 6. Proof of other tax payment/credit, if applicable. 7. Authorization letter, if filed by authorized representative. ACDTcE Tax Table If Taxable Income is: Tax Due is: If Taxable Income is: Tax Due is: Not over P10,000 5% Over P10,000 P500 + 10% of the Over P140,000 P22,500 + 25% of the but not over P30,000 excess over P10,000 but not over P250,000 excess over P140,000 Over P30,000 P2,500 + 15% of the Over P250,000 P50,000 + 30% of the but not over P70,000 excess over P30,000 but not over P500,000 excess over P250,000 Over P70,000 P8,500 + 20% of the Over P500,000 P125,000 + 32% of the but not over P140,000 excess over P70,000 excess over P500,000 BIR Form No. 1701 - Annual Income Tax Return For Self-Employed Individuals, Estates and Trusts Guidelines and Instructions for BIR Form No. 1701 June 2013 (ENCS) Annual Income Tax Return For Self-Employed Individuals, Estates and Trusts These instructions are designed to assist taxpayers, or their representatives, with the preparation of the annual income tax return (ITR). If there are questions which are not adequately covered, please consult the local BIR office. If there appears to be any discrepancies between these instructions and the applicable laws and regulations, the laws and regulations take precedence. Who Shall File BIR Form No. 1701 shall be filed by individuals who are engaged in trade/business or the practice of profession including those with mixed income ( i.e. , those engaged in the trade/business or profession who are also earning compensation income) 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 return shall be filed by the following individuals regardless of amount of gross income: 1. A resident citizen engaged in trade, business, or practice of profession within and without the Philippines. 2. A resident alien, non-resident citizen or non-resident alien individual engaged in trade, business or practice of profession within the Philippines. cAaDCE 3. A trustee of a trust, guardian of a minor, executor/administrator of an estate, or any person acting in any fiduciary capacity for any person, where such trust, estate, minor, or person is engaged in trade or business. 4. An individual engaged in trade or business or in the exercise of their profession and receiving compensation income as well. All individuals, estates and trusts above required under the law and existing issuances to file this return should also fill up Part IX hereof. Said individuals, estates and trusts shall declare such income subject to final tax and those exclusions from gross income under Section 32 (B) of the Tax Code, as amended. Married individuals shall file a return for the taxable year to include the income of both spouses, computing separately their individual income tax based on their respective total taxable income. Where it is impracticable for the spouses to file one return, each spouse may file a separate return of income. If any income cannot be definitely attributed to or identified as income exclusively earned or realized by either of the spouses, the same shall be divided equally between the spouses for the purpose of determining their respective taxable income. The income of unmarried minors derived from property received from a living parent shall be included in the return of the parent except (1) when the donor's tax has been paid on such property, or (2) when the transfer of such property is exempt from donor's tax. If the taxpayer is unable to make his own return, the return may be made by his duly authorized agent or representative or by the guardian or other person charged with the care of his person or property, the principal and his representative or guardian assuming the responsibility of making the return and incurring penalties provided for erroneous, false or fraudulent returns. HSaIET When and Where to File and Pay A. For Electronic Filing and Payment System (eFPS) Taxpayer : The return shall be e-filed and the tax shall be e-paid on or before the 15th day of April of each year covering income of the preceding taxable year using the eFPS facilities thru the BIR website www.bir.gov.ph . B. For Non-Electronic Filing and Payment System (Non-eFPS) Taxpayer : The return shall be filed and the tax shall be paid on or before the 15th day of April of each year covering income of the preceding taxable year with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the RDO where the taxpayer is registered. In places where there are no AABs, the return shall be filed and the tax shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO. Non-eFPS taxpayers may opt to use the electronic format under "eBIRForms" (refer to www.bir.gov.ph ) for the preparation, generation and submission and/or payment of this return with greater ease and accuracy, upon availability of the same in the system. FOR NO PAYMENT RETURNS: This shall be filed with the RDO where the taxpayer is registered or with the concerned RCO under the same RDO. FOR INSTALLMENT PAYMENT: When the tax due exceeds P2,000, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment, on or before July 15 of the same year. DSHTaC FOR NON-RESIDENT TAXPAYER: In case taxpayer has no legal residence or place of business in the Philippines, the return shall be filed with the Office of the Commissioner thru RDO No. 39, South Quezon City. How to Accomplish the Form 1. Enter all 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, there is no need to leave blank after the comma or period. Do NOT write "NONE" or make any other marks in the box/es. cIHSTC This return is divided into Parts I to X with accompanying Schedules 1 to 12. Individual instructions as to the source of the information and the necessary calculations are provided on each line item . Part Parts Page No. 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 12 X Mandatory Attachments for Exempt/Special Tax 1m Regime per Activity-USE THIS IF THERE ARE to MORE THAN ONE EXEMPT AND/OR 5m 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. Sched Schedules Page No. No. 1 Gross Compensation and Tax Withheld 5 2 Sales/Revenues/Receipts/Fees 5 3 Other Taxable Income Not Subjected to Final Tax 5 4A Cost of Sales (For those Engaged in Trading) 5 4B Cost of Sales (For those Engaged in Manufacturing) 6 4C Cost of Services 6 5 Non-Operating Income 6 6 Ordinary Allowable Itemized Deductions 6-7 7 Special Allowable Itemized Deductions 8 8 Computation of Net Loss Carry Over (NOLCO) 8 9 Tax Credits/Payments-Attach proof 9 10 Balance Sheet 9 11A Tax Filer's-Reconciliation of Net Income per Books 10 Against Taxable Income 11B Spouse's-Reconciliation of Net Income per Books 10 Against Taxable Income 12 Supplemental Information 11 For Items 1 to 4 : Item 1 Indicate the taxable year covered by the return being filed; Item 2 Choose "Yes" if the tax return is one amending 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). Part I (Items 5 to 25) Background Information on Tax Filer Item 5 Taxpayer Identification Number (TIN) : Enter tax filer's TIN. Spouse's TIN is entered in Item 95. If no 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 the 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". HEDCAS Item 8 Tax filer's Name : Enter the Last Name, First Name, Middle Name for individuals/ESTATE of First Name, Middle Name, Last Name/TRUST FAO First Name, Middle Name, Last Name as it was entered on the 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 Address : Enter Registered Address as indicated in BIR Form No. 2303. If tax filer has moved since the previous filing and has NOT updated the registration, update the registration by filing BIR Form No. 1905. In the meantime, accomplish Part VIIB on page 4 of this ITR. Items 11 to 16 : Fill-up required information. Item 17 Main Line of Business : Indicate the nature of the business the taxpayer is engaged in as indicated in BIR Form No. 2303. Items 18 to 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 the 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 is 40% of Gross Sales/Receipts/Revenues/Fees under Section 34 (L), NIRC as amended by RA 9504. The option to choose applies only to individuals subject to Sec. 24 of the Tax Code, as amended, and with no special/preferential tax rates applied. The chosen method of deduction used in the first quarter of the year shall be irrevocable and consistently applied throughout the year. AEIDTc Individual taxpayers with mixed income subject to income tax rates other than the income tax rates prescribed under Sec. 24 of the Tax Code, as amended, are not included among those individuals with option to elect the Optional Standard Deductions under Sec. 24 (L) of the same Tax Code. Hence, they are allowed to use only the itemized deductions method. Items 21 to 23 : Mark applicable box with an "X". Items 24 to 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 exemptions 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 "yes" is marked for Item 24, enter the number of Dependent Children in Item 25, and then provide the required information for each child in Part VIIA. Should there be additional dependent(s) during the taxable year, tax filer 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, becomes 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, became twenty-one (21) years old or became employed at the close of such year. SDTIaE Part II (Items 26 to 32) Total Tax Payable 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 the 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 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. 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 tax filer's Government Issued ID and its details. Part III (Items 38 to 40) Details of Payment Enter the information required and then file the original ITR plus two (2) copies to any AAB within the RDO where registered. Refer to www.bir.gov.ph for the applicable AAB or visit the local BIR Office. For no payment returns, proceed with filing the ITR with the RDO where the taxpayer is registered or the concerned RCO under the same RDO. cDaEAS Part IV (Items 41 to 67) Computation of Income Tax-Regular Rate At the top of this page and in all succeeding pages that are to be filed, enter the tax filer's TIN and Last Name. The requirement for entering centavos on the ITR has been eliminated. If the amount of centavos is 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 there is a need to complete the appropriate schedules 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 Health 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 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 this deduction. Items 45 & 46 Personal and Additional Exemptions : 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). Items 47 to 56 : Fill-up and/or compute required information. Items 57 to 59 Deductions Allowed under Existing Laws : May choose either the itemized or optional standard deduction, subject to REGULAR TAX RATES only. It shall indicate the choice by marking 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. SHAcID 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 subject to REGULAR Income Tax Regime Only . However, individuals who availed and claimed this deduction is no longer required to submit the financial statements when filing the annual tax return but required to keep such records pertaining to the gross sales or receipts. Items 62 to 66 : Compute to arrive at the total taxable income. Item 67 : The regular/normal graduated rate of income tax is 5-32% of net taxable income. Part V (Items 68 to 80) Summary of Income Tax Due 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 violations: HIACEa 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 a false or fraudulent return is filed. Item 82 Interest : 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. Part VI Tax Relief Availment Taxpayer availing of any tax relief under the Tax Code must fill-up Items 86-94. SEcTHA 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 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. Part VII (Items 95 to 111) Other Relevant Information 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. CIScaA Part VIII (Items 112 to 118) Information External Auditor/Accredited Tax Agent 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 to 115 : Name and Taxpayer Identification Number (TIN); Items 116 to 118 : BIR Accreditation Number, Date of Issuance, and Expiry Date. b) For members of the Philippine Bar ( i.e., individual practitioners, members of GPPs); Items 112 to 115 : Name and Taxpayer Identification Number (TIN); Items 116 to 118 : Attorney's Roll Number or Accreditation Number, Date of Issuance, and Expiry Date. Schedules : The information provided in all of the schedules must be supported by appropriate documents. Schedule 1 Gross Compensation Income and Tax Withheld of tax filer and/or Spouse. Schedules 2 to 5 Fill-up the information provided in appropriate schedules and must be supported by 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 interest, 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 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, etc. aAcDSC 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. Schedule 9 Tax Credits/Payments : Indicate claimed Tax Credits/Payments and attach necessary proof/s. 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 to be added or subtracted from the net income reported in the financial statements to arrive at the taxable income reported in the income tax return. For 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 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. 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. For Tax Filers with Multiple Tax Regimes : Accomplish only Part IX and X if with Exempt/Special Tax Regime. Accomplish Part X Mandatory Attachments for Exempt/Special per tax Regime per Activity and consolidate to Part IX together with Part IV for Regular Tax Regime. TCAScE Part IX Consolidated Computation by Tax Regime Accomplish required consolidated information per tax regime and reflect the total for the tax filer and the spouse. If under regular rate only, do not accomplish Part IX, instead, proceed directly to Schedules-Regular Rate (Schedules 1 to 12B). cAaDCE Part X Mandatory Attachments for Exempt/Special Tax Regime per Activity Part X is applicable only for those with income subject to multiple tax regimes. However, tax filer must first complete appropriate schedules from Part X-Mandatory Attachments for Exempt/Special Tax Regimes per Activity pages 1m 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 C for 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 . Required Attachments : 1. Certificate of independent CPA duly accredited by the BIR (The CPA Certificate is required if the gross quarterly sales, earnings, receipts or output exceed P150,000). 2. 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) Taxes and Licenses AcaEDC b) Other information prescribed to be disclosed in the notes to FS 3. Statement of Management's Responsibility (SMR) for Annual Income Tax Return. 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). 6. Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316). 7. Duly approved Tax Debit Memo, if applicable. 8. Proof of prior years' excess credits, if applicable. 9. Proof of Foreign Tax Credits, if applicable. 10. For amended return, proof of tax payment and the return previously filed. 11. Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source (SAWT), if applicable. 12. Proof of other tax payment/credit, if applicable. 13. Authorization Letter, if filed by an authorized representative. 14. Waiver of husband's right to claim additional exemption, if applicable. DSEIcT BIR Form No. 1702-RT For Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to Regular Income Tax Rate Guidelines and Instructions BIR Form No. 1702-RT (June 2013) For Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR INCOME TAX RATE These instructions are designed to assist tax filers, or their representatives, with the preparation of the annual income tax return (ITR). If there are questions which are not adequately covered, please consult the local BIR office. If there appears to be any discrepancies between these instructions and the applicable laws and regulations, the laws and regulations take precedence. DIETcC What Form to Use : BIR Form No. Description 1702-RT Corporation, Partnership and other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate 1702-EX Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT under the Tax Code, as amended [Sec. 30 and those exempted in Sec. 27 (C)] and other Special Laws, with NO Other Taxable Income 1702-MX For Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE Who Shall File BIR Form No. 1702-RT This return shall be filed by Corporation, Partnership and other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate of 30% . 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. DTEScI When and Where to File and Pay 1) For Electronic Filing and Payment System (eFPS) Taxpayer : The return shall be e-filed and the tax shall be e-paid on or before the 15th day of the fourth month following the close of the taxpayer's taxable year using the eFPS facilities thru the BIR website www.bir.gov.ph . 2) For Non-Electronic Filing and Payment System (Non-eFPS) Taxpayer : The return shall be filed and the tax shall be paid on or before the 15th day of the fourth month following the close of the taxpayer's taxable year with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer's principal office is registered. In places where there are no AABs, the return shall be filed and the tax shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO. Non-eFPS tax filer may opt to use the electronic format under "eBIRForms" (refer to www.bir.gov.ph ) for the preparation, generation and submission and/or payment of this return with greater ease and accuracy, upon availability of the same in the system. For NO PAYMENT RETURN: The return shall be filed with the RDO where the taxpayer's principal office is registered or with the concerned RCO under the same RDO on or before the 15th day of the fourth month following the close of the taxpayer's taxable year. How to Accomplish the Form 1. Enter all 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; ESTDcC 2. Indicate 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"; 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, there is no need to leave blank after the comma or period. Do NOT write "NONE" or make any other marks in the box/es; and CTHDcE 5. Accomplish first the applicable schedules before accomplishing Parts II to V. This return is divided into Parts I to VI with accompanying Schedules 1 to 13. Individual instructions as to the source of the information and the necessary calculations are provided on each line item . Part Parts Page No. No. I Background Information 1 II Total Tax Payable 1 III Details of Payment 1 IV Computation of Tax 2 V Tax Relief Availment 2 VI Information External 2 Auditor/Accredited Tax Agent Sched Schedules Page No. No. 1 Sales/Revenues/Receipts/Fees 3 2A Cost of Sales (For those Engaged in Trading) 3 2B Cost of Sales (For those Engaged in 3 Manufacturing) 2C Cost of Services 3 3 Other Taxable Income Not Subjected to 4 Final Tax 4 Ordinary Allowable Itemized Deductions 4-5 5 Special Allowable Itemized Deductions 5 6 Computation of Net Operating Loss Carry 5 Over (NOLCO) 7 Tax Credits/Payments-Attach proof 6 8 Computation of Minimum Corporate 6 Income Tax (MCIT) 9 Reconciliation of Net Income per Books 6 Against Taxable Income 10 Balance Sheet 7 11 Stockholders/Partners/Members 7 Information 12 Supplemental Information 8 13 Gross Income/Receipts Exempt from 8 Income Tax For Items 1 to 5 Item 1 Mark the applicable box with an "X". This refers to the accounting period (Fiscal or Calendar year) upon the basis of which the annual income tax return is being accomplished; Item 2 Indicate the taxable year ended covered by the return being filed; Item 3 Choose "Yes" if the tax return is one amending previous return filed, "No" if not; Item 4 Choose "Yes" if the return is made for a fractional part of a year ( e.g., commencement, retirement or change in accounting period). Item 5 Indicate the appropriate ATC as shown in the Certificate of Registration (BIR Form No. 2303). If subject to Minimum Corporate Income Tax (MCIT) for this taxable period, mark the applicable box with an "X". HEcTAI Part I (Items 6-15) Background Information Item 6 Taxpayer Identification Number (TIN) : Enter the TIN for the corporation, partnership or other non-individual taxpayer. Item 7 RDO Code : Enter the appropriate code for the RDO per BIR Form Nos. 1903/2303. Item 8 Date of Incorporation/Organization : Enter the date as shown in BIR Form No. 2303. It is the date when the corporation has been incorporated as per Certificate of Registration issued by the Securities and Exchange Commission (SEC)/other regulatory agencies like the Cooperative Development Authority, National Electrification Authority, etc. Item 9 Registered Name : Enter the name as it was entered on the Certificate of Registration (BIR Form No. 2303). Item 10 Registered Address : Enter Registered Address as indicated in the BIR Form No. 2303. If taxpayer has moved since the previous filing and has NOT updated the registration, the taxpayer must update its registration by filing BIR Form No. 1905. Item 13 Main Line of Business : Indicate the nature of the main line of business the company is engaged in per BIR Form No. 2303. Item 14 PSIC Code: Philippine Standard Industrial Classification (PSIC) Code : Refer to www.bir.gov.ph for the applicable PSIC or visit the local BIR Office. Item 15 Method of Deduction : Choose either Itemized Deduction under Section 34 (A-J), NIRC, as amended, or Optional Standard Deduction (OSD) which is 40% of Gross Income 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 irrevocable and consistently applied throughout the year. ASHICc Part II (Items 16-21) Total Tax Payable Accomplish first Part IV Computation of Tax on page 2 and other schedules before accomplishing these items. Then transfer the applicable 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. Signatory Lines : When all pages of the return are complete, sign the return in the place indicated, enter the number of pages filed. In Items 23-26, provide the required information and its details. Part III (Items 26-29) Details of Payment Enter the information required and then file the original ITR plus two (2) copies to any AAB within the RDO where registered. Refer to www.bir.gov.ph for the applicable AAB or visit the local BIR Office. For no payment returns, proceed with filing the ITR with the RDO where the tax filer is registered or the concerned RCO under the same RDO. Part IV (Items 30-51) Computation of Tax Enter taxpayer's TIN and Registered Name at the top of this page and in all succeeding pages. The requirement for entering centavos on the ITR has been eliminated. If the amount of centavos is 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 ( e.g. , P100.50 = P101.00). Accomplish first Schedules 1 to 9 before transferring these items to the applicable information required in Part IV Computation of Tax. EDcIAC Item 41 : The regular/normal rate of income tax is 30% of net taxable income. Penalties shall be imposed and collected as part of the tax: Item 47 : A surcharge of twenty-five percent (25%) for each of the following violations: 1. Failure to file any return and pay the amount of tax or installment due on or before the due date; 2. 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; 3. 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; 4. Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment. A surcharge of fifty percent (50%) of the 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 fraudulent return is filed. Item 48 : Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid. Item 49 : Compromise penalty pursuant to existing/applicable revenue issuances. cEAIHa Part V (Items 52-54) Tax Relief Availment Accomplish first Schedules 5 and 7 before entering these items in Part V. Descriptions are defined in the applicable schedules. Part VI (Items 55-61) Information External Auditor/Accredited Tax Agent 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 55 to 58 : Name and TIN; Items 59 to 61 : BIR Accreditation Number, Date of Issuance and Expiry Date. B. For members of the Philippine Bar ( i.e., individual practitioners, members of GPPs); Items 55 to 58 : Name and TIN; Items 59 to 61 : Attorney's Roll Number or Accreditation Number, Date of Issuance, and Expiry Date. Schedules 1-3 : List down the amounts of sales/revenues/receipts/fees, cost of sales/revenue and other taxable income not subjected to Final Tax ( e.g., Interest Income from affiliates, sale of scraps, etc.) DacASC Schedule 4 Ordinary Allowable Itemized Deductions : 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 also includes interest, taxes, losses, bad debts, depreciation, depletion, charitable and other contributions, research and development and pension trust. Schedule 5 Special Allowable Itemized Deductions : These refer to special allowable deductions from gross income in computing taxable income, in addition to the regular allowable itemized deduction, as provided under the existing regular 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, Free Legal Assistance under R.A. 9999, etc. Schedule 6 Computation of Net Operating Loss Carry Over (NOLCO) : 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 three (3) immediately succeeding taxable years following the year of such loss. Schedule 7 Tax Credits/Payments : Indicate claimed Tax Credits/Payments and attach necessary proof/s. Schedule 8 Computation of Minimum Corporate Income Tax (MCIT) : 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 minimum corporate income tax 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. EDIHSC Schedule 9 Reconciliation of Net Income per Books Against Taxable Income : Indicate all the reconciling items to be added or subtracted from the net income reported in the financial statements to arrive at the taxable income reported in the income tax return. Fill up 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. (Provide additional sheet/s, if necessary.) Schedule 10 Balance Sheet : Indicate the amounts as shown in the Audited Financial Statements. Schedule 11 Stockholders/Partners/Members Information : Indicate only the Top 20 stockholders, partners or members showing the Registered Name, TIN, amount of capital contribution and the percentage to the total ownership/equity. Schedule 12 Supplemental Information : Indicate gross income subject to final tax: sale/exchange of real property; sale/exchange of shares of stocks; other income and the corresponding final withholding tax, if applicable. Schedule 13 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. Required Attachments 1. Certificate of independent CPA duly accredited by the BIR (The CPA Certificate is required if the gross quarterly sales, earnings, receipts or output exceed P150,000). 2. 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: AIaHES a. Taxes and Licenses b. Other information prescribed to be disclosed in the notes to FS 3. Statement of Management's Responsibility (SMR) for Annual Income Tax Return. 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). 6. Duly approved Tax Debit Memo, if applicable. 7. Proof of prior years' excess credits, if applicable. 8. Proof of Foreign Tax Credits, if applicable. 9. For amended return, proof of tax payment and the return previously filed. 10. Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source (SAWT), if applicable. 11. Proof of other tax payment/credit, if applicable. BIR Form No. 1702-EX For Use only by Corporation, Partnership and Other Non-Individual Taxpayer Exempt under the Tax Code, as Amended [Sec. 30 and those exempted in Sec. 27 (C)] and other Special Laws, with No Other Taxable Income Guidelines and Instructions BIR Form No. 1702-EX (June 2013) For Use only by Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT under the Tax Code, as amended [Sec. 30 and those exempted in Sec. 27 (C)] and other Special Laws, with NO Other Taxable Income These instructions are designed to assist tax filers, or their representatives, with the preparation of the annual income tax return (ITR). If there are questions which are not adequately covered, please consult the local BIR office. If there appears to be any discrepancies between these instructions and the applicable laws and regulations, the laws and regulations shall take precedence. EHCaDS What Form to Use : BIR Form No. Description 1702-RT Corporation, Partnership and other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate 1702-EX Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT under the Tax Code, as amended [Sec. 30 and those exempted in Sec. 27 (C)] and other Special Laws, with NO Other Taxable Income 1702-MX For Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE Who Shall File BIR Form No. 1702-EX This return shall be filed by a Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT under the Tax Code, as amended [Sec. 30 and those exempted in Sec. 27 (C)] and other Special Laws WITH NO OTHER TAXABLE INCOME such as but not limited to foundations, cooperatives, charitable institutions, non-stock and non-profit educational institutions, General Professional Partnership (GPP) etc., otherwise use BIR Form No. 1702-MX. Every GPP shall file this return setting forth the items of gross income and of deductions and the names, TINs, addresses and share of its partners. 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. llcd When and Where to File and Pay 1) For Electronic Filing and Payment System (eFPS) Taxpayer : The return shall be e-filed and the tax shall be e-paid on or before the 15th day of the fourth month following the close of the taxpayer's taxable year using the eFPS facilities thru the BIR website www.bir.gov.ph . 2) For Non-Electronic Filing and Payment System (Non-eFPS) Taxpayer : The return shall be filed and the tax shall be paid on or before the 15th day of the fourth month following the close of the taxpayer's taxable year with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer's principal office is registered. In places where there are no AABs, the return shall be filed and the tax shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO. Non-eFPS tax filer may opt to use the electronic format under "eBIRForms" (refer to www.bir.gov.ph ) for the preparation, generation and submission and/or payment of this return with greater ease and accuracy, upon availability of the same in the system. For NO PAYMENT RETURN: The return shall be filed with the RDO where the taxpayer's principal office is registered or with the concerned RCO under the same RDO on or before the 15th day of the fourth month following the close of the taxpayer's taxable year. How to Accomplish the Form 1. Enter all 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; CIAcSa 2. Indicate 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"; 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, there is no need to leave blank after the comma or period. Do NOT write "NONE" or make any other marks in the box/es; and 5. Accomplish first the applicable schedules before accomplishing Parts II to V. This return is divided into Parts I to VI with accompanying Schedules 1 to 10. Individual instructions as to the source of the information and the necessary calculations are provided on each line item . Part Parts Page No. No. I Background Information 1 II Total Tax Payable 1 III Details of Payment 1 IV Computation of Tax 2 V Tax Relief Availment 2 VI Information External 2 Auditor/Accredited Tax Agent Sched Schedules Page No. No. 1 Sales/Revenues/Receipts/Fees 3 2A Cost of Sales (For those Engaged in Trading) 3 2B Cost of Sales (For those Engaged in Manufacturing) 3 2C Cost of Services 3 3 Other Taxable Income Not Subjected to 4 Final Tax 4 Ordinary Allowable Itemized Deductions 4-5 5 Special Allowable Itemized Deductions 5 6 Reconciliation of Net Income per Books 5 Against Taxable Income 7 Balance Sheet 6 8 Stockholders/Partners/Members Information 6 9 Supplemental Information 7 10 Gross Income/Receipts Exempt from 7 Income Tax For Items 1 to 5 Item 1 Mark the applicable box with an "X". This refers to the accounting period (Fiscal or Calendar year) upon the basis of which the net income is computed by the tax filer. Item 2 Indicate the taxable year ended covered by the return being filed. Item 3 Choose "Yes" if the tax return is one amending previous return filed, "No" if not. Item 4 Choose "Yes" if the return is made for a fractional part of a year ( e.g., commencement, retirement or change in accounting period). Item 5 Mark the appropriate ATC as shown in the Certificate of Registration (BIR Form No. 2303). ATC IC 011 for Exempt Corporation on Exempt Activities ATC IC 021 for General Professional Partnership DCcSHE Part I (Items 6-19) Background Information Item 6 Taxpayer Identification Number (TIN) : Enter the TIN for the corporation, partnership or other non-individual taxpayer. Item 7 RDO Code : Enter the appropriate code for the RDO per BIR Form Nos. 1903/2303. Item 8 Date of Incorporation/Organization : Enter the date as shown in BIR Form No. 2303. It is the date when the corporation has been incorporated as per Certificate of Registration issued by the Securities and Exchange Commission (SEC)/other regulatory agencies like the Cooperative Development Authority, National Electrification Authority, etc. Item 9 Registered Name : Enter the registered name as it was entered in BIR Form No. 2303. Item 10 Registered Address : Enter registered address as indicated in BIR Form No. 2303. If taxpayer has moved since the previous filing and has NOT updated the registration, the taxpayer must update its registration by filing BIR Form No. 1905. Item 13 Main Line of Business : Indicate the nature of the main line of business the company is engaged in per BIR Form No. 2303. Item 14 PSIC Code: Philippine Standard Industrial Classification (PSIC) Code : Refer to www.bir.gov.ph for the applicable PSIC or visit the local BIR Office. Item 15 Method of Deduction : Itemized Deduction under Section 34 (A-J), NIRC, as amended. aASEcH Item 16 Legal Basis of Tax Relief/Exemption : Indicate 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, RA 9520 Cooperative Law, etc. Item 17 Investment Promotion Agency (IPA)/Government Agency : Indicate the IPA that granted exemption/incentive/preferential tax rate. For example, Cooperative Development Authority (CDA), National Electrification Administration (NEA), etc. Item 18 Registered Activity/Program/Registration Number : Indicate the registered activity/program Registration Number as shown in the registration certificate issued by the concerned IPA. Item 19 Effectivity Date of Tax Relief/Exemption : Indicate the effectivity date of the relief/exemption from start date to end date 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: From start date: May 31, 2012 shown as 05/31/2012 to end date May 31, 2015 shown as 05/31/2015. Part II (Items 20-22) Total Tax Payable Total Income Tax Due amounts to Zero (O). Only the compromise penalty, if any, shall be paid for violations under the NIRC, as amended, and other issuances. Part IV Computation of Tax on page 2 and other schedules must also be accomplished. Signatory Lines : When all pages of the return are complete, sign the return in the place indicated, enter the number of pages filed. In Items 23-26, provide the required information and its details. IEAacT Part III (Items 27-30) Details of Payment Enter the information required and then file the original ITR plus two (2) copies to any AAB within the RDO where registered. Refer to www.bir.gov.ph for the applicable AAB or visit the local BIR Office. For no payment returns, proceed with filing the ITR with the RDO where the tax filer is registered or the concerned RCO under the same RDO. Part IV (Items 31-35) Computation of Tax Enter taxpayer's TIN and Registered Name at the top of this page and in all succeeding pages. The requirement for entering centavos on the ITR has been eliminated. If the amount of centavos is 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 ( e.g. , P100.50 = P101.00). Accomplish first Schedules 1 to 5 before transferring these items to the applicable information required in Part IV Computation of Tax. Items 36-38 Deductions Allowed under Existing Law : Only Itemized Deduction is allowed under Sec. 34 (A-J), of the Tax Code, as amended, consistently applied throughout the year for taxpayers under Sec. 30 and those exempted in Sec. 27 (C) of the same Code, as amended, and other Special Laws with NO Other Taxable Income. Item 40 : The Income Tax Rate is 0% of net taxable income. ISDCaT Part V (Items 42-44) Tax Relief Availment Taxpayer availing of any tax relief under the Tax Code must completely fill-up Items 42-44. Part VI (Items 45-51) Information External Auditor/Accredited Tax Agent 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 45 & 46 : Name and Taxpayer Identification Number (TIN); Items 49-51 : BIR Accreditation Number, Date of Issuance, and Expiry Date. B. For members of the Philippine Bar ( i.e., individual practitioners, members of GPPs); Items 45 & 46 : Name and Taxpayer Identification Number (TIN); Items 49-51 : Attorney's Roll Number or Accreditation Number, Date of Issuance, and Expiry Date. Schedules : Schedules 1-3 : List down the amounts sales/revenues/receipts/fees, cost of sales/revenue and other taxable income not subjected to Final Tax ( e.g., Interest Income from affiliates, sale of scraps, etc. ). SDHETI Schedule 4 Ordinary Allowable Itemized Deductions : 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 interest, taxes, losses, bad debts, depreciation, depletion, charitable and other contributions, research and development and pension trust. Schedule 5 Special Allowable Itemized Deductions : These refer to special allowable deductions from gross income in computing taxable income, in addition to the regular allowable itemized deduction, as provided under the existing regular 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, Free Legal Assistance under R.A. 9999, etc. Schedule 6 Reconciliation of Net Income per Books Against Taxable Income : Indicate all the reconciling items to be added or subtracted from the net income reported in the financial statements to arrive at the taxable income reported in the income tax return. Fill up 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. (Provide additional sheet/s, if necessary.) Schedule 7 Balance Sheet : Indicate the amounts as shown in the Audited Financial Statements. Schedule 8 Stockholders/Partners/Members Information : Indicate only the Top 20 stockholders, partners or members showing the Registered Name, TIN, amount of capital contribution and the percentage to the total ownership/equity. aHTcDA Schedule 9 Supplemental Information : Indicate gross income subject to final tax; sale/exchange of real property; sale/exchange of shares of stocks; other income and the corresponding final withholding tax, if applicable. Schedule 10 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. Required Attachments 1. Certificate of independent CPA duly accredited by the BIR (The CPA Certificate is required if the gross quarterly sales, earnings, receipts or output exceed P150,000). 2. 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. Taxes and Licenses b. Other information prescribed to be disclosed in the notes to FS 3. Statement of Management's Responsibility (SMR) for Annual Income Tax Return. 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). 6. Duly approved Tax Debit Memo, if applicable. 7. Proof of prior years' excess credits, if applicable. aEcADH 8. Proof of Foreign Tax Credits, if applicable. 9. For amended return, proof of tax payment and the return previously filed. 10. Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source (SAWT), if applicable. 11. Proof of other tax payment/credit, if applicable. 12. Schedule of returns filed by General Professional Partnership. Distributive Share Registered Received by Each Name Registered Partner for the (Partner) TIN Address Taxable Year _________ _____________ _____________ ___________ _________ _____________ _____________ ___________ BIR Form No. 1702-MX For Corporation, Partnership and Other Non-Individual Taxpayer with Mixed Income Subject to Multiple Income Tax Rates or with Income Subject to Special/Preferential Rate Guidelines and Instructions BIR Form No. 1702-MX (June 2013) For Corporation, Partnership and Other Non-Individual Taxpayer with Mixed Income Subject to MULTIPLE INCOME TAX RATES These instructions are designed to assist tax filers, or their representatives, with the preparation of the annual income tax return (ITR). If there are questions which are not adequately covered, please consult the local BIR office. If there appears to be any discrepancies between these instructions and the applicable laws and regulations, the laws and regulations take precedence. IcHTED What Form to Use : BIR Form No. Description 1702-RT Corporation, Partnership and other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate 1702-EX Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT under the Tax Code, as amended [Sec. 30 and those exempted in Sec. 27 (C)] and other Special Laws, with NO Other Taxable Income 1702-MX Annual Income Tax Return for Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE Who Shall File BIR Form No. 1702-MX This return shall be filed by every Corporation, Partnership and Other Non-Individual Taxpayer with MIXED Income subject to MULTIPLE INCOME TAX RATES or with income subject to SPECIAL/PREFERENTIAL RATE . 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. When and Where to File and Pay 1) For Electronic Filing and Payment System (eFPS) Taxpayer : The return shall be e-filed and the tax shall be e-paid on or before the 15th day of the fourth month following the close of the taxpayer's taxable year using the eFPS facilities thru the BIR website www.bir.gov.ph . TAaEIc 2) For Non-Electronic Filing and Payment System (Non-eFPS) Taxpayer : The return shall be filed and the tax shall be paid on or before the 15th day of the fourth month following the close of the taxpayer's taxable year with any Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District Office (RDO) where the taxpayer's principal office is registered. In places where there are no AABs, the return shall be filed and the tax shall be paid with the concerned Revenue Collection Officer (RCO) under the jurisdiction of the RDO. Non-eFPS tax filer may opt to use the electronic format under "eBIRForms" (refer to www.bir.gov.ph ) for the preparation, generation and submission and/or payment of this return with greater ease and accuracy, upon availability of the same in the system. For NO PAYMENT RETURN: The return shall be filed with the RDO where the taxpayer's principal office is registered or with the concerned RCO under the same RDO on or before the 15th day of the fourth month following the close of the taxpayer's taxable year. How to Accomplish the Form 1. Enter all 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 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"; IaHDcT 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, there is no need to leave blank after the comma or period. Do NOT write "NONE" or make any other marks in the box/es; and 5. Accomplish first the applicable schedules before accomplishing Parts II to V. This return is divided into Parts I to VIII with accompanying Schedules 1 to 14. Individual instructions as to the source of the information and the necessary calculations are provided on each line item . Part Parts Page No. No. I Background Information 1 II Total Tax Payable 1 III Details of Payment 1 IV Basis of Tax Relief 2 V Computation of Amount Payable per Tax 2 Regime VI Information External Auditor/Accredited Tax Agent 2 VII Schedules 1-14 3-14 VIII Mandatory Attachments per Activity-Use 1m this if there are MORE THAN ONE Exempt and/or to SPECIAL Tax Regime. Accomplish as many Part 4m VIII as there are activities/programs per tax regime. Consolidate the amounts of all Mandatory Attachments PER TAX REGIME and reflect the same to the corresponding schedules and columns under Schedules 1-8 of Part VII. Sched Schedules Page No. No. 1 Computation of Tax per Regime 3 2 Tax Relief Availment 3 3 Sales/Revenues/Receipts/Fees 4 3A Cost of Sales (For those Engaged in Trading) 4 3B Cost of Sales (For those Engaged in Manufacturing) 4 3C Cost of Services 4 4 Other Taxable Income Not Subjected to Final 5 Tax 5 Ordinary Allowable Itemized Deductions 5-6 6 Special Allowable Itemized Deductions 6 7 Computation of Net Operating Loss Carry 6 Over (NOLCO) 8 Tax Credits/Payments-Attach proof 6 9 Computation of Minimum Corporate Income 7 Tax (MCIT) 10 Reconciliation of Net Income per Books 7 Against Taxable Income 11 Balance Sheet 8 12 Stockholders/Partners/Members Information 8 13 Supplemental Information 9 14 Gross Income/Receipts Exempt from Income 9 Tax For Items 1 to 5 Item 1 Mark the applicable box with an "X". This refers to the accounting period (Fiscal or Calendar year) upon the basis of which the net income is computed by the tax filer. cESDCa Item 2 Indicate the taxable year ended covered by the return being filed. Item 3 Choose "Yes" if the tax return is one amending previous return filed, "No" if not. Item 4 Choose "Yes" if the return is made for a fractional part of a year ( e.g., commencement, retirement or change in accounting period). Item 5 Indicate the appropriate ATC as shown in the Certificate of Registration (BIR Form No. 2303). If subject to Minimum Corporate Income Tax (MCIT) for this taxable period, mark the applicable box with an "X". Part I (Items 6-15) Background Information Item 6 Taxpayer Identification Number (TIN) : Enter the TIN for the corporation, partnership or other non-individual taxpayer. Item 7 RDO Code : Enter the appropriate code for the RDO per filed BIR Form Nos. 1903/2305. Item 8 Date of Incorporation/Organization : Enter the date as shown in BIR Form No. 2303. It is the date when the corporation has been incorporated as per Certificate of Registration issued by the Securities and Exchange Commission (SEC)/other regulatory agencies like the Cooperative Development Authority, National Electrification Authority, etc. DHECac Item 9 Registered Name : Enter taxpayer's name as it was entered on BIR Form No. 2303 (Certificate of Registration). Item 10 Registered Address : Enter Registered Address as indicated in BIR Form No. 2303. If taxpayer has moved since the previous filing and has NOT updated the registration, the taxpayer must update the registration by filing BIR Form No. 1905. Item 13 Main Line of Business : Indicate the nature of the main line of business the company is engaged in per BIR Form No. 2303. Item 14 PSIC Code: Philippine Standard Industrial Classification (PSIC) Code : Refer to www.bir.gov.ph for the applicable PSIC or visit the local BIR Office. Item 15 Method of Deduction : Itemized Deduction under Section 34 (A-J), NIRC, as amended. AIHDcC Part II (Items 16-21) Total Tax Payable Accomplish first Part V Computation of Amount Payable per Tax Regime on page 2 and other schedules before accomplishing these items. Then transfer the applicable information from Part V to each of the items in Part II. Individual instructions as to the source of the information and the necessary calculations are provided on each line item. Signatory Lines : When all the pages of the return are complete, sign the return in the place indicated, enter the number of pages filed. In Items 22-25, provide the required information and its details. Part III (Items 26-29) Details of Payment Enter the information required and then file the original ITR plus two (2) copies to any AAB within the RDO where registered. Refer to www.bir.gov.ph for the applicable AAB or visit the local BIR Office. For no payment returns, proceed with filing the ITR with the RDO where the tax filer is registered or the concerned RCO under the same RDO. Part IV (Items 30-36) Basis of Tax Relief If there is only one activity/program per tax regime (exempt and/or special rate) fill up the required information in the applicable columns of Items 31 to 36. SDIaHE If the taxpayer has more than one activities/programs per tax regime (exempt and/or special), put an "X" in the box in item 30 and accomplish only column C of Items 31 to 36 (Special Tax Relief under Regular/Normal Rate). Additionally, accomplish for each and every registered activity/program Part VIII Mandatory Attachments per Activity. Thus, there shall be as many Part VIII Mandatory Attachments per Activity, as necessary. Part V (Items 37-44) Computation of Amount Payable per Tax Regime Complete first the appropriate schedules and then transfer the applicable amounts as instructed. Make the necessary calculations as directed and enter the totals. If the amount of centavos is 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 ( e.g. , P100.50 = P101.00). Penalties shall be imposed and collected as part of the tax. Item 40 A surcharge of twenty-five percent (25%) for each of the following violations: 1. Failure to file any return and pay the amount of tax or installment due on or before the due date; 2. 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; 3. 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; CTDacA 4. Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assessment. A surcharge of fifty percent (50%) of the 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 fraudulent return is filed. Item 41 Interest at the rate of twenty percent (20%) per annum, or such higher rate as may be prescribed by rules and regulations, on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid. Item 42 Compromise penalty pursuant to existing/applicable revenue issuances. Part VI (Items 45-51) Information External Auditor/Accredited Tax Agent 1) 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 45 & 46 : Name and Taxpayer Identification Number (TIN); Items 49-51 : BIR Accreditation Number, Date of Issuance, and Expiry Date. aDECHI b) For members of the Philippine Bar ( i.e., individual practitioners, members of GPPs); Items 45 & 46 : Name and Taxpayer Identification Number (TIN); Items 49-51 : Attorney's Roll Number or Accreditation Number, Date of Issuance, and Expiry Date. Part VII Schedules Start filling-up column C for the transactions subject to Regular Tax Rate, if any. If there is only one activity/program per tax regime (exempt and/or special rate) accomplish columns A and/or B. If there are more than one activities/programs per tax regime (exempt and/or special rate) , accomplish columns A and/or B only after accomplishing Part VIII Schedules per Tax Regime. Accomplish as many Part VIII as there are activities/programs per tax regime . Consolidate the amounts PER TAX REGIME under EXEMPT and/or SPECIAL from all of Part VIII Mandatory Attachments which shall be reflected in columns A and/or B corresponding to the appropriate schedules and columns (Total Exempt/Total Special) under Schedules 1-8 of Part VII. HTDcCE Finally, transfer the applicable Items in Part VII to Part II. Schedule 1 (Items 1-17) Computation of Tax per Tax Regime : Accomplish first the applicable schedules before accomplishing these items. Follow the necessary calculations as provided on each line item. Schedule 2 (Items 1-7) Tax Relief Availment : Taxpayer availing of any tax relief under the Tax Code must completely fill-up Items 1-7. 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. Item 6: Special Tax Credit refer to tax credits allowed under special laws, rules and issuances. Schedule 5 Ordinary Allowable Itemized Deductions (Attach additional sheets, if necessary) : Corporation, Partnership and Other Non-Individual with Mixed Income Subject to Multiple Income Tax Rates or with Income Subject to Special/Preferential Rate are mandated to use the itemized deduction . However, the use of itemized deductions shall not apply to juridical entities not allowed to claim any deductions ( e.g. , non-resident foreign international carriers). DCcAIS 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 also includes interest, taxes, losses, bad debts, depreciation, depletion, charitable and other contributions, research and development and pension trust. Schedule 6 Special Allowable Itemized Deductions : These refer to special allowable deductions from gross income in computing taxable income, in addition to the regular allowable itemized deduction, as provided under the existing regular 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, Free Legal Assistance under R.A. 9999, etc. Schedule 7 Computation of Net Operating Loss Carry Over (NOLCO) : 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 three (3) immediately succeeding taxable years following the year of such loss. Schedule 8 Tax Credits/Payments : Indicate claimed Tax Credits/Payments and attach necessary proof. IcHTAa Schedule 9 Computation of Minimum Corporate Income Tax (MCIT) : 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 minimum corporate income tax 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. Schedule 10 Reconciliation of Net Income per Books Against Taxable Income : Indicate all the reconciling items to be added or subtracted from the net income reported in the financial statements to arrive at the taxable income reported in the income tax return. Fill-up 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. (Provide additional sheet/s, if necessary.) Schedule 11 Balance Sheet : Indicate the amounts as shown in the Audited Financial Statements. Schedule 12 Stockholders/Partners/Members Information : Indicate only the Top 20 stockholders, partners or members showing the Registered Name, TIN, amount of capital contribution and the percentage to the total ownership/equity. Schedule 13 Supplemental Information: Indicate gross income subject to final tax: sale/exchange of real property; sale/exchange of shares of stocks; other income and the corresponding final withholding tax, if applicable. Schedule 14 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. AECacT Part VIII Mandatory Attachments per Activity (Schedules per Tax Regime) Use as many Part VIII Mandatory Attachments per Activity, as necessary, if there are more than one activities/programs under EXEMPT and/or SPECIAL Tax Regime. Accomplish as many Part VIII as there are activities/programs per tax regime . Consolidate the amounts of all Mandatory Attachments PER TAX REGIME and reflect the same to the corresponding schedules and columns under Schedules 1-8 of Part VII. Required Attachments 1. Certificate of independent CPA duly accredited by the BIR (The CPA Certificate is required if the gross quarterly sales, earnings, receipts or output exceed P150,000). 2. 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. Taxes and Licenses b. Other information prescribed to be disclosed in the notes to FS 3. Statement of Management's Responsibility (SMR) for Annual Income Tax Return. 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). TSEcAD 6. Duly approved Tax Debit Memo, if applicable. 7. Proof of prior years' excess credits, if applicable. 8. Proof of Foreign Tax Credits, if applicable. 9. For amended return, proof of tax payment and the return previously filed. 10. Certificate of Tax Treaty Relief/Entitlement issued by the concerned Investment Promotion Agency (IPA). 11. Summary Alpha list of Withholding Agents of Income Payments Subjected to Withholding Tax at Source (SAWT), if applicable. 12. Proof of other tax payment/credit, if applicable. Published in Manila Bulletin and The Philippine Star on February 6, 2014.