What an income tax return is
An income tax return summarises how much you earned in a year and how much income tax you owe, after credits for taxes already withheld. Most people who earn income are expected to account for it through a return, unless a specific rule exempts them.
Which form applies to you
The right return depends on your income type:
- Employees earning purely compensation income generally use BIR Form 1700, though many qualify for substituted filing and do not file their own.
- Self-employed individuals and professionals use BIR Form 1701, or the simpler Form 1701A for those on certain tax options.
- Mixed-income earners, who have both a job and a business, generally use Form 1701.
- Corporations and partnerships use BIR Form 1702.
How filing works
Most taxpayers prepare returns through the BIR's eBIRForms or, for larger filers, the eFPS system. Self-employed taxpayers also file quarterly returns during the year, not just one annual return.
Recent reforms have made it possible to file and pay through more channels rather than only at your home RDO. Ask AskOnward for the current forms, deadlines, and channels for your situation.