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How to File Your Annual ITR (1701 or 1701A or 1700) Using Taxumo

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.

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 individuals file 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 your 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. With this form, you’ll need to add all employment income and deduct all payroll taxes withheld by your employer(s) and pay the remaining tax due (if any). Since this is used by individuals who had two or more employers within a year, they are no longer qualified for substituted filing (substituted filing means that the employer files taxes on your behalf).
  • Form 1701 – Use this form if the 1) you are a mixed-income individual, meaning you are an employee AND also earning income from a business or side profession (ex. consultancy work, freelance writer, etc.) or 2) if you’ve chosen Graduated Tax rate with an Itemized Deduction Method
  • Form 1701A –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.

I’m earning less than ₱250,000 annually

Under the new TRAIN law, those who earn less than ₱250,000 annually are exempt from paying income tax returns.  So if you fall under this bracket, you don’t have to pay your annual ITR — BUT you still have to file.

My annual income is more than ₱250,000

The TRAIN law gives you two options for filing and computing your taxes. You can either follow the 3% percentage + income tax (use the graduated income tax table) or use the new 8% Gross Receipt Tax.

Now, the 8% Gross Receipt Tax might sound easier for you, but keep in mind that it’s not for everyone. To know if you’re making the right choice, check out this tax calculator that we made for you.

How to compute your Annual Income Tax dues

Before you begin, you’ll need to check whether you’re on the 8% Income Tax Rate or the Graduated Income Tax Rate. The easiest way to do this is to check your Certificate of Registration from the BIR. This will indicate which tax schedule you’re on.

I’m on the 8% Income Tax Rate

The first thing you’ll need to know is whether your earnings come solely from your business or profession, or if your earnings come from both compensation (basically, if you have an employer) and business/profession.  After which, you can apply the formula below applicable to you:

Income Solely from Business / Profession

Total Income Tax Due = 0.08 * (Gross Sales - ₱250,000)

Mixed Income Earner

Total Income Tax Due = (0.08 * Gross Sales) + Tax Due on Compensation

As you can see, the ₱250,000 deduction is NOT applied for Mixed-Income Earners. The reason for this is because the ₱250,000 has already been deducted from the tax due based on compensation so it no longer applies to the tax from your business

I’m on the Graduated Income Tax Rate

If you’re on the Graduated Income Tax Rate, you’ll need to check first whether you’re on Itemized Deduction or Optional Standard Deduction (OSD).

Here’s the difference between the two if you’re confused:

  • OSD – This allows you to claim a deduction of 40% from your gross sales or receipts for the quarter.
  • Itemized Deduction – You have to identify and deduct all the ordinary and necessary expenses from your gross income. These expenses must attribute to the development, management, and operation of your business like travel and salaries.

Take note that neither of these options is available for you if you opt for the 8% IT rate

Now, both of the deductions have different formulas for computing your taxable income so check your Certificate of Registration to confirm which one applies to you.

With that being said, calculating your tax payable for Graduated Income Tax Rate takes two steps:

  1. Compute your taxable income
  2. And, based on the taxable income, refer to the tax table for how much tax you’ll need to pay

Formulas for Taxable Income

Itemized Deduction
Taxable Income = Gross Sales - Gross Purchases
Optional Standard Deduction
Taxable Income = Gross Sales * 60%

Computing for Tax Payable

After calculating your taxable income, you will need to refer to the tax table below for your tax dues.

Deadlines for filing BIR Form 1701, 1701A and 1700

The BIR requires that your Annual Income Tax Return must be filed on or before the 15th day of April each year.

However, since April 15, 2023 falls on a weekend, the deadline has been extended to April 17, 2023.

We do recommend that you file your annual ITR as soon as possible to avoid any unforeseen problems.

What are the attachments required for filing

Here are the documents you’ll need to prepare:

  1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable.
  2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable.
  3. Duly approved Tax Debit Memo, if applicable.
  4. Previously filed return, if an amended return is filed for the same quarter.

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.

When can I start using Taxumo for 1701/1701A/1700 Forms?

1701A  and 1701 forms are in the system already.

 For 1700, you may email customercare@taxumo.com to request for this service. Kindly indicate 1700 Taxumo Service as the subject of your email.

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. What is necessary though is for you to have a subscription with Taxumo. Check out our plans and inclusions here: https://taxumo.com/pricing

For those who are new to Taxumo, make sure the you encoded the income and expenses for Quarter 4 of last year. Don’t worry, the form will ask you for income and expenses prior to that, too, if you don’t want to encode each and every entry in Taxumo.

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 just shifted or will shift  to Taxumo, have your past Quarterly Income tax forms by by your side as you fill out the form.

Here is a guide on how to file 1701A:

Here is a guide on how to file 1701:

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.

Do I need to fill out the form in eBIR Forms?

If you use Taxumo, no need to fill out the forms in eBIR Forms. You will be able to access your BIR confirmation in your past filings tab. You will also be able to pay for your taxes using the different payment channels that we have provided. You can then access the copy of your payment record in your past filings tab.

If you have Zero or negative tax dues, no need to pay for anything obviously.

So again, these are the things that you can download and keep a copy of which you can get from your TAX DUES >> PAST FILINGS Tab:

  • Copy of your filled out tax form (1701A or 1701)
  • Copy of your BIR Confirmation
  • Copy of your payment record (if you had tax dues to pay for 1701A or 1701

Do I need to have the form stamped?

It is not required (if you are not submitting an Audited Financial Statement or AFS) along with your forms. However, if you really really want to have a “Stamped Form”, print out a copy of these forms:

  • Copy of your filled out tax form (1701A or 1701)
  • Copy of your BIR Confirmation
  • Copy of your payment record (if you had tax dues to pay for 1701A or 1701
  • Request for the SAWT confirmation (from Taxumo) via customercare@taxumo.com and print it out
  • Collate all 2307 or Creditable withheld tax certificates that you have received

How much is Taxumo’s  ITR Preparation service? 

For 1700

  • The service fee is Php2,000 (VAT-inclusive). This covers computation, filing, and remittance of your tax dues (if any). Get your quote here.

For 1701A and 1700

  • Preparation, filing and payment is included in all subscription plans

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. Note that for “peak seasons” for tax filing, the BIR may send us delayed confirmations, but rest assured that Taxumo will always help follow this up with them. We go the extra mile for our subscribers!

Here are the Taxumo deadlines you have to take note of:

  • 1701 and 1701A – Taxumo’s deadline is on April 13, 2023
  • To be clear, you can still file AFTER these dates — penalty calculations of the BIR will be included though as Taxumo will assume the filing will happen after the April 17 deadline of the BIR.
  • 1700 – Taxumo’s deadline for submission of requests and payments is on April 13, 2023

When I use Taxumo for filing and paying for my 1701 and 1701A, 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 and the Payment record.

The status will be “Completed” within a week after the Taxumo deadline of filing. We highly encourage you to FILE EARLY 🙂

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. 🙂

Happy Filing!

File your Annual ITR now by subscribing to a Taxumo subscription plan today:

40 thoughts on “How to File Your Annual ITR (1701 or 1701A or 1700) Using Taxumo”

  1. Hi. I’m a property specialist(agent) and I’m a non vat sales personnel. I already have 2307 from my company and planning to get ITR for 2019. Kindly send me all the documents needed and fees for the said ITR processing.thanks

  2. Can I ask how to properly fill out the 1700 form. I have my 2 previous employer. And upon filling out the form by the downloaded eBIR form, there are fields there that should only be filled out. What should I do? one of my colleagues says that it should be 0.

  3. ask ko lang po. 1) last year ang gamit ko is 1701 this year 2020 ang file na ng accountant para sa akin is form 1701A. does it make differece, although tama din na naman na purely sa negosyo lang ung tax (non vat single prop) 2) may problem kaya un sa COR kasi nakalagay sa COR ko is 1701 and 1701Q ang mga activities. 3) paano po kaya iyon. salamat po sa reply

    1. Baka nag opt yung accountant mo ng 8% in lieu kaya naging 1701a na yung in-file nya. Sa akin kasi pina-8% ko pero hindi nila binago yung cor ko. May note nalang sa baba ng cor ko na nag avail ako ng 8%.. ask mo sa iyong accountant..

  4. Pingback: May 2020 Annual ITR (1701 and 1701A) Filing, Now More Affordable & Easier with Taxumo | Taxumo - File & Pay Your Taxes in Minutes!

  5. Pingback: Guide for BIR Form 2307 for Tax Computation in the Philippines | Taxumo Blog

  6. Pingback: How To File BIR Form 1701Q (A Complete Guide For 2020)

  7. Greetings! I am a student and I need my parent’s non filling income tax return to apply for a scholarship. We have sa sari-sari store. How can I get a certificate?Thanks you!

    1. Hi, after filling my 1701A using eBIR and getting the stamp at my RDO, do I still need to upload it somewhere allong with the required attachments. Where should I upload it in case it is needed?

  8. I’m a household worker here in the Philippines and i need an ITR to for my application abroad. Ano po ang mga kailangan kong i-file?

  9. Hello Taxumo Team!

    I hope you are doing well and safe.

    If we choose to avail the “Portion of Tax Payable Allowed for Installment” option when filing the 1701A form, how do we pay for the second installment, or what form should we use?

    Thank you for your time.

    Best Regards,
    Filipino Tax Payer

    1. Yes, when you file for your 2021 Annual ITR you need to indicate that you are a mixed-income earner. Then for 2022, you may file as purely earning from business/profession.

  10. Pingback: (2022 Updated) BIR Form 1701: How To File & Pay Annual Income Tax

  11. hi po. what could be the consequences if incorrectly filled out the BIR form 1701 that instead to have a zero tax due, it resulted to an overpayment?

  12. I have a question, If I’m a mix income earner will there be issues or updates that my main employer will see or need to update if I file 1701 voluntarily?

  13. Hi I’m a freelancer and I just received my COR last January 23. Can I still file my taxes for 2022 of there will be a penalty if it exceeds 250k?

    1. Hello Jen,

      Yes you can still file for late filings for the year 2022. However, there are already penalty fees since the tax filings were not done on time.

  14. I have question regarding deductions like SSS, Philhealth and Pag-ibig can this contributions be less when filling 1701a under 8% Income Tax Rate?

    1. Hello Anne,

      Basically, when you’re under the 8% income tax rate type, you’re already exempted to pay for percentage tax. Thus, your expenses won’t matter with the computation of your income tax 🙂

    1. Hello Natasha,

      We’d be happy to assist you on this. Can you send us a copy of your certificate of registration via customercare@taxumo.com. We would like to double check which Annual ITR do you need to file. If it’s 1701 or 1701A.

      Thank you!:)

    1. Hello Che,

      No need to submit it directly to BIR if you processed it via Taxumo. Your next step is to submit it via eAFS portal: https://eafs.bir.gov.ph/eafs/

      Here’s the step-by-step guide on how you can submit your attachments thru eAFS webpage: http://help.taxumo.com/en/articles/4196871-submission-of-attachments-via-the-eafs-submission-portal

  15. Hello Taxumo, I came across with your blog. I am earning 250k below. I’ve read about being exempted for paying the 8% tax but need to file my itr. My question are 1. How to file ? it is ive scanned the forms and I’m overwhelmed with all of it. 2. Do I need to pay penalties since i am already late with the deadline.
    Thank you so much for the time.

    1. Hello Princess,

      Good day!

      May we ask if you’re already registered in BIR and have a form 2303? If not yet, then that is the first step that you should do so you’ll know what forms are you required to file and how often should you file it.

      If you are already registered, all you have to do in Taxumo is to set up an account and input your Taxpayer’s Details including the Business Profile for the year your are filing for on the SETTINGS and the platform will automatically fill-out your form for you. 

      With this, you will be selecting the tax forms that you intend to file for each year. 

      Then you can input the Income and Expenses for the period you intend to file taxes for on CASH FLOW. You can also upload any 2307s issued to you if you have them. 

      Then you can go to TAX DUES>Current Filings and find the tax card you intend to file. Each tax card will show you the tax due and the penalty computation for late filings. You can click “File Now” and pay through the payment channels you can choose from. 🙂

      For the penalty inquiry, please note that our tax obligation starts upon our registration with BIR. If you are not yet registered, then you do not need to worry about the filings that you are unable to comply prior your official registration date. But we highly recommend that you register now as there is a possibility of having penalties for late registration. 🙂

  16. Filing my annual ITR has always been a daunting task, but your blog post has made it much easier to understand. I appreciate the detailed explanations of Forms 1700, 1701, and 1701A and the specific situations where each should be used. The new Tax Reform Laws can be confusing, so having resources like Taxumo to guide us through the process is invaluable.

    1. Hello!

      Thank you for your kind feedback! We’re thrilled to hear that our blog post has made filing your annual ITR easier for you. We understand that navigating the complexities of tax laws can be daunting, especially with the recent Tax Reform Laws. We strive to provide clear and detailed explanations of the different forms and their applicable situations. We’re glad to be a helpful resource for you, and if you have any further questions or need assistance, please don’t hesitate to reach out.

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