There is a misconception that you only have to file your income tax returns annually in the Philippines, but this is not the case. Both individuals (e.g., sole proprietors, freelancers, etc.) and non-individuals (corporations, partnerships, etc.) have to file quarterly returns as well. And, in this guide, we’ll discuss how to go about filing BIR Form 1702Q for your business.
What is BIR Form 1702Q
This form is also known as the Quarterly Income Tax Return for Corporations, Partnerships, and Other Non-Individual Taxpayers.
This is the standard form used by non-individual taxpayers in the Philippines to file their quarterly income tax returns. The form contains sections that require taxpayers to declare their income and expenses for the quarter to determine how much tax dues they owe.
Who Are Required to File?
This form is to be filed by non-individual taxpayers specifically:
- Joint Stock Companies
- Joint Accounts
- Associations (except foreign corporations not engaged in trade or business in the Philippines)
- Government-owned or controlled corporations, agencies, and instrumentalities.
So, if any of the above-mentioned classifications apply to you, you will need to file BIR Form 1702Q.
For individual taxpayers like freelancers and sole proprietors, you will be filing BIR Form 1701Q instead.
When Are The Deadlines For Filing 1702Q
According to the BIR, the corporate quarterly income tax return shall be filed with or without payment within sixty (60) days following the close of each of the first three (3) quarters of the taxable year whether calendar or fiscal year.
This means that you will have different dates for filing depending if you’re on the calendar year or fiscal year.
|Calendar Year||Fiscal Year|
|1st Quarter||May 29||60 days after the end of each quarter|
|2nd Quarter||August 29|
|3rd Quarter||November 29|
If you’re looking for the 4th Quarter filing deadline, this will be included when you file your annual income tax returns.
How To Fill Out BIR Form 1702Q
This section will show you how each section of the Quarterly Corporate Income Tax Return works.
You can access a copy of the form on BIR’s website.
In this section, you need to fill up your taxpayer information exactly as it appears on your BIR Certificate of Registration.
Total Tax Payable
This section will help you calculate how much you need to pay for your income tax dues. Certain items in this section, such as the Income Tax Due (Item 14), will need to be referenced from Part IV – Schedules.
Part IV of BIR Form 1702Q will help you calculate your income tax due which will be referenced in Part III or the Total Tax Payable portion of the form.
Schedule 1 is meant to be used for the Computation of Tax Due for Exempt and Special Rate. So if you’re company is exempted from filing corporate income tax (like in the case of non-profit organizations) or is eligible for special rates, you will need to fill out this section.
Schedule 2 is what most non-individual taxpayers use as this is used for businesses that don’t have income tax exemption or special income tax rates applicable to them.
Schedule 3 may be used if your Corporate Income Tax at 25% is less than 2% of the Minimum Corporate Income Tax on gross income.
If you are unsure which schedule to use, we advise that you seek the advice of a tax professional. You can book a consultation session with Taxumo’s Partner Accountants here.
Details of Payment
This section simply requires you to add in your payment details.
When filing your tax return, don’t forget to file the attachments applicable to you. Below is the list of attachments that you may need to file together with Form 1702Q:
- Certificate of Income Payments not Subject to Withholding Tax (BIR Form No. 2304), if applicable;
- Certificate of Creditable Tax Withheld at Source (BIR Form No. 2307), if applicable;
- Duly approved Tax Debit Memo, if applicable;
- Certificate of Tax Treaty relief, if any;
- Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source (SAWT), if applicable; and
- Proof of other payment/s, if applicable.
How To File
There are multiple ways you can file your Quarterly Corporate Income Tax Returns:
You can file and pay BIR Form 1702Q at an Accredited Agent Bank (AAB) within your local Revenue District Office’s (RDO) jurisdiction. You will need to file this form in triplicate (3 copies).
If your area does not have any AAB, then you can file and pay directly to the Revenue Collection Officer of your RDO.
eFPS is one of BIR’s electronic filing facilities. However, not everyone is eligible to use this system.
The eFPS system is only available for the top 5,000 individual taxpayers, top 20,000 private corporations, large companies, government bidders, insurance companies, stockbrokers, and national government agencies.
If you’re bummed that you’re not eligible for eFPS, don’t be. BIR also has eBIRForms which also allows you to file your tax returns electronically.
Easier Option to File 1702Q: Taxumo
Even if the channels mentioned above allow you to file electronically, preparing your quarterly income tax returns is still difficult.
The computations and filling up of forms are more complicated on 1702Q than individual taxpayers’ tax returns. The submission of attachments is a nightmare too (since we need to input it one by one)!
Taxumo, our web-based tax filing app certified by the BIR, lets you skip the manual computing of tax dues and accomplishing BIR form 1702Q. Instead, you would only need to enter your income and expenses, and you get your tax dues auto-calculated in real-time.
The BIR form 1702Q is also auto-generated, so there’s no need to manually fill out and print forms. The best part is that with a click of a button, you could submit your taxes automatically to the BIR.
If you want stress-free and fast corporate income tax filing, you can sign up for a free Taxumo account.