Filing Income Tax in the Philippines? Start Here.
If you’re a freelancer, small business owner, or self-employed Filipino, then income tax filing is part of your financial life. Hindi po sya once a year lang, just like what a few believe it to be.
Whether you’re preparing your 1701Q (Quarterly) or 1701A/1701 (Annual) forms, one thing’s for sure:
There’s always confusion about what to file, when to file it, and how.
That’s why we created this FAQ-style guide from Taxumo — to answer the most common questions about income tax filing in the Philippines for 2025.
Let’s help you file smarter (and stress-free)!
Frequently Asked Questions About Income Tax Filing (Philippines 2025)
1. Do I really need to file income tax? I’m a freelancer / side hustler lang.
✅ Yes. If you’re earning income outside of employment — like freelancing, selling online, or offering services — then you’re considered self-employed and must file taxes with the BIR.
2. What’s the difference between 1701Q, 1701A, and 1701?
| Form | What it’s for | When to file |
|---|---|---|
| 1701Q | Quarterly income tax return | May 15, Aug 15, Nov 15 |
| 1701A | Annual return using 8% flat tax | April 15 |
| 1701 | Annual return using graduated tax rates | April 15 |
If you’re using the 8% income tax option, you’ll file 1701Q and 1701A.
If you’re using the regular tax table, you’ll file 1701Q and 1701.
3. When is the deadline for 1701Q Q1 2025?
🗓️ BIR Deadline: May 15, 2025
🗓️ Taxumo Filing Deadline: May 13, 2025 (file earlier to avoid late posting!)
4. How do I know if I can use the 8% income tax rate?
You can use the 8% flat rate if:
- You’re not VAT-registered
- You earned below ₱3 million in gross receipts
- You choose 8% during your first 1701Q filing for the year
👉 If you don’t choose 8% during Q1, you’ll be defaulted to graduated tax rates for the rest of the year.
5. What’s the difference between 8% vs Graduated Income Tax?
| Tax Type | Who it’s for | How it’s computed |
|---|---|---|
| 8% Flat Tax | Freelancers, self-employed earning below ₱3M | 8% of gross income after ₱250K deduction |
| Graduated Tax | Anyone earning any amount | Based on TRAIN Law tax table (ranges 0%–35%) |
6. What happens if I miss the deadline?
Late filing = penalties 😩
- 10% surcharge
- 6% interest (per annum, pro-rated)
- ₱500 compromise penalty
Check this article: New BIR Penalty computation
✅ Taxumo reminds you ahead of deadlines — and helps you file on time.
7. Can I still file if I didn’t earn anything this quarter?
Yes! You SHOULD file a “No Income” return (aka zero filing)
👉 You can do this easily with just a few clicks in Taxumo.
8. What documents do I need when filing 1701Q?
- Your gross income amount for the quarter
- Any expenses/deductions (if using graduated tax)
- BIR Certificate of Registration (COR) – Just to make sure you’re using the correct TIN and data
- (Optional) 2307s if you had tax withheld at source
9. Do I need to file manually or can I do this online?
You can file and pay 100% online using Taxumo — no need to go to the BIR or manually compute anything.
Steps:
a. CREATE a FREE account in Taxumo and set up your “settings” page (double check against your BIR COR)
b. ENCODE – In the Cashflow tab, add all of your revenue and expenses. In the Withheld tax > Received tab, add all your 2307 forms (take a picture first so that you have a soft copy since you will need to upload these)
c. FILE TAX – Go to the Tax Dues tab and file your taxes. You’ll need a subscription plan. For those who opted to go with the 8%, get the 8% plan. For those who are under the graduated income tax table or mixed income earners, get the Non VAT plan / Micro plan. For those who are VAT, get the VAT plan / SMB plan.
That’s it!!!
10. Can Taxumo file 1701Q for me?
Yes! 🙌
With Taxumo, you can:
- Compute your quarterly taxes automatically
- Choose between 8% or graduated tax
- File 1701Q online (system automatically generates the form)
- Pay securely via Billease, Credit or Debit Card, GCash, Maya, or bank transfer
- Keep digital records in your dashboard (past filings tab under tax dues)
✨ No spreadsheets. No guesswork. No stress.
💡 Pro Tips for Income Tax Filing in 2025
✅ File early (BIR systems get congested close to deadlines)
✅ Choose 8% if your income is under ₱3M and you have few deductions
✅ Use tax software (like Taxumo!) to avoid common errors
✅ Keep your COR and books updated
✅ Don’t ignore “no income” quarters — still file zero returns!
Final Thoughts
Income tax filing doesn’t have to be confusing or stressful.
With the right tools — and a little help — you can stay compliant, penalty-free, and focused on growing your income.
👉 Start filing smarter with Taxumo.
It’s BIR-accredited, super beginner-friendly, and made for freelancers, business owners, and self-employed Filipinos like you.
