Hello, April! April is also one of the busiest months here at the Taxumo Headquarters. And, you probably know the reason why.
Everyone’s scrambling and asking us how to prepare, file and pay for their Annual Income Tax. With this, to help you understand the 101s on filing your Annual Income Tax Return, we created this guide / blogpost.
1.) What is the Annual Income Tax Return (ITR) for?
The Income Tax Return (ITR) that most people refer to is actually the annual tax form that an individual files every April 15th of the following year. This form summarizes all of the income (or loss) you have incurred for the past year. With the new Tax Reform Laws (TRAIN), there are now 3 types of forms available for you to file you annual ITR. Note that all these forms are NEW FORMS that were just recently launched.
- Form 1700 – Please use this form if you have no other sources of income other than employment income, and add all employment income and deduct all payroll taxes withheld by employer(s), and pay remaining tax due (if any). This is used by individuals who had two EMPLOYERS within a year thus, you are not qualified for substituted filing (substituted filing means that the Employer files taxes on your behalf).
- Form 1701 – Please use this form if the 1) income you are earning is purely from your business or profession and you’ve chosen the Itemized Deduction Method OR if 2) you are a mixed income individual, meaning you are an employee AND also earning from a business or side profession (ex. consultancy work, freelance writer, etc.)
- Form 1701A – Please use this form if you are earning purely business income or income from your profession. This is a new form released by the BIR for those who chose the Optional Standard Deduction Method (OSD) or opted in for 8% GRT in the previous year
You can also refer to this handy flowchart that we made:
* Note: The Annual Income Tax Return (regardless of form) is just one of a series of quarterly tax forms you have to file. It is highly recommended that you also make sure you file your Quarterly Income Tax Forms aside from your Annual. You can read more about how to do so via Taxumo here.
2.) Do I need to have a COR before I can use Taxumo?
- Taxumo does not require you to upload your COR. This means you can already start filing even without your COR on hand.
3.) When can I start using Taxumo for 1701/1701A/1700 Forms?
The 1701A and 1701 Preparation Service is already available in Taxumo!
For 1700, you may email firstname.lastname@example.org to request for this service. Kindly indicate 1700 Taxumo Service as the subject of your email.
4.) How do I fill out the Fields in Taxumo for these forms?
Make sure that you have created an account in Taxumo. Uploading of the Certificate of Registration and the Signature is not necessary. For those who are new to Taxumo, make sure the you encoded the income and expenses for Quarter 4 of last year, If you have been a customer of Taxumo since the time you started your business, then you’ll have the details automatically shown in the Annual Income Tax form. If you will shift to Taxumo, have your past Quarterly Income tax forms by by your side as you fill out the form.
For 1701A: You may refer to this instructional video on what fields and details are needed.
For 1701: Watch the video below! 🙂
*Note: For the “Portion of Tax Payable Allowed for Installment”, the 2nd payment (or installment) could be paid on or before October 2019.
For 1700: We will send you the information that we need via email. Once we receive it, we will prepare and send you back the form.
5.) Do I need to fill out the form in eBIR Forms?
If you are availing of the Prepare Only option in Taxumo, yes, you would have to fill out the form in eBIR Forms, print out a copy or your BIR Email confirmation and pay your tax dues via an Authorized Agent bank of your RDO or the city of your business address. If you have Zero or negative tax dues, you will just need to have the documents stamped at your Revenue District Office. In some cases, RDOs don’t require forms with zero or negative tax dues to be stamped. Better check with your RDO. https://www.bir.gov.ph/index.php/contact-us/directory/revenue-district-offices.html
***Update: Prepare Only is the only option available starting April 12 at 9:00am.
If you are availing of the Prepare + File option in Taxumo, we will be filing your tax form for you. All you have to do next is to pay your tax dues via an Authorized Agent Bank (AAB) of your RDO or the city of your business address. If you have Zero or negative tax dues, you will just need to have the documents (4 copies of the form with the BIR Email Confirmation and the other attachments) stamped at your Revenue District Office. In some cases, RDOs don’t require forms with zero or negative tax dues to be stamped. Better check with your RDO. https://www.bir.gov.ph/index.php/contact-us/directory/revenue-district-offices.html
6. Can Taxumo also process the payment for my Annual Income Tax Forms (1701/1701A/1700)?
For this year, since ALL THE FORMS are new, we highly recommend that you pay for it at an Authorized Agent Bank. Here is a list of the AABs. Next year, once all the dust has settled we plan to automate this process end-to-end.
7. How much is Taxumo’s ITR Preparation services?
- Prepare Only – Php 4500
- Prepare Only – Php 3500
- Prepare + File – Php 5000 (not available since April 12, 3:00 pm)
- Prepare Only – Php 5000
- Prepare + File – Php 6500 (For those who availed of our 1701 reservation rates, all of you will be given a Compute + File functionality); (not available since April 12, 3:00 pm)
8. I am a Taxumo Prepaid and Premium user. What do I need to do?
For Taxumo DIY Prepaid Plan / DIY Prepaid Plan+ Users:
- If you are filing a Form 1701A, simply log in to your Taxumo account and choose the “Prepare + File” option, as the processing fees for the Form 1701A has already been pre-paid when you subscribed.
- If you are filing a Form 1701, you will no longer see a “Reserve A Slot” button, because you are technically already pre-reserved and pre-paid when you subscribed. Once the form becomes available in Taxumo, you may choose the “Prepare + File” option.
For Taxumo Premium Users:
- Please expect a message from our team regarding your 1701A and 1701 filings. The instructions in this post is specifically for Taxumo DIY and Prepaid Plan and Prepaid Plan Plus users.
9. When do I get a BIR Confirmation?
You will get a BIR Confirmation one week after the Taxumo filing deadlines. Read HERE for more information about the confirmation that you will receive.
Here are the Taxumo deadlines you have to take note of:
- Prepare + File – April 13, 2019 (This is available until April 12, 2019 only since slots are full)
- Prepare Only – April 15, 2019
- To be clear, you can still file AFTER these dates — penalty calculations will be included though as Taxumo will assume the filing will happen after the April 15 deadline of the BIR.
(clarification: Taxumo will send the BIR confirmation to you only if you selected “Prepare + File”)
10.) When I get the Prepare and File option, when do I know that Taxumo has submitted or filed my form to the BIR?
After you have submitted your tax form via Taxumo, you will see the form’s progress in the “Past Filings” tab. This is where you will get the BIR Email Confirmation if you availed Compute + File option.
The status will be “Completed” within a week after the Taxumo deadline of filing.
If you have other questions about your Annual Income Tax, please do chat with us by pressing the chat button on the lower right side of this page. 🙂