It’s that time of the year again! Time to start preparing for your annual income tax return. Filing your taxes can be overwhelming, but it’s an important responsibility as a citizen. This year, the deadline for filing your income tax return in the Philippines is April 15, 2023.
In this blog, we will cover the most important questions you need answered to equip you with the right know-how to ace your Annual Income Tax Return filing:
What Is BIR Form 2316 and Should You Have This?
If you’re employed in the Philippines, you’ll likely receive a Form 2316 from your employer, which shows your gross pay, total taxable income and the amount that your employer withheld and remitted to the government for the year. If you are self-employed, you’ll need to gather all your income and expense records to calculate your taxable income. If you are a mixed income individual (meaning you earn salary from an employer and you are running a business or practicing a profession on the side), you will need both your BIR 2316 Form from your employer and you will also need to gather all your income and expense records for the year.
Because of the popularity of the Annual Income Tax Return in the Philippines, most taxpayers think that this is the only tax form that needs to filed. When you have a business, a freelancing career or practicing a profession, you will need to file specific forms on a quarterly or monthly basis. When you register with the BIR, they will give you a Certificate of Registration where you will see all the types of taxes you need to file and the due dates for each.
What to Do if You Switched Employers Within the Same Year?
Another thing to consider, for individuals who shifted or changed jobs last year (meaning 2 employers for 2022), you will need to file your own income tax return, too, in the form of BIR Form 1700. This form can be filled out by hand or online, and you’ll need to attach your supporting documents which is your BIR 2316 Form from your previous employer/s. Example, if you switched jobs in February 2022 and then switched jobs again in May 2022 and then switched again to your current job last November 2022, you will need to get your BIR 2316 Forms from the employer you left in February and the employer you left last May 2022.
It’s important to keep in mind that failing to file your income tax return or filing it late can result in penalties. So, make sure to file your return on time and accurately.
If you need assistance in preparing your annual income tax return and other BIR forms, you may want to consider using Taxumo (especially if you don’t have any accounting background and you’re not too familiar with computing your tax dues).
Taxumo is the perfect tool to help you file income tax return! It allows you to file and pay your taxes in 3 minutes or less, all within the convenience of your home. All you need to do is to type in your income and expenses, encode the 2307 forms that you have received (if any), the system automatically computes your tax dues. There’s no need to line up in the bank and spend money on transportation. You can pay your tax dues via the different payment channels available in Taxumo, such as, debit and credit cards, online / mobile banking, GCash, Maya, Grabpay, etc.
In conclusion, filing your annual income tax return may seem like a hassle, but it’s an important responsibility that contributes to the overall development of our country. So, make sure to take the time to prepare and file your return accurately and on time.
If you have other questions, feel free to join Taxumo’s weekly calls for customers using clicking this link: I Want to Know How Taxumo Works! or get in touch with our Customer Advocates via email@example.com
Remember to file your annual income tax early!