Thisreturn shall be filed by the following individuals regardless ofamount of gross income:
1) Aresident citizen engaged in trade, business, or practice ofprofession within and without the Philippines.
2) Aresident alien, non-resident citizen or non-resident alienindividual engaged in trade, business or practice of professionwithin the Philippines.
3) A trustee of a trust,guardian of a minor, executor/administrator of an estate, or anyperson acting in any fiduciary capacity for any person, wheresuch trust, estate, minor or a person is engaged in trade andbusiness.
4) An individual engaged in trade or businessor in the exercise of their profession and recieving compensationincome as well.
Allindividuals, estates and trusts above required under the law andexisting issuances to file this return should also fill up PartIX hereof. Said individuals, estates and trusts shall declaresuch income subject to final tax and those exclusions from grossincome under Section 32(B) of the Tax Code,as amended.
Marriedindividuals shall file a return for taxable year to include theincome of both spouses, computing separately their individualincome tax based on their respective total taxable income. Whereit is impracticable for the spouses to file one return, eachspouse may file a separate return of income. If any income cannotbe definitely attributed to or identified as income exclusivelyearned or realized by either of the spouses, the same shall bedivided equally between the spouses for the purpose ofdetermining their respective taxable income.
Theincome of unmarried minors derived from property received from aliving parent shall be included in the return of the parentexcept(1) when the donor's tax has been paid on such property, or(2) when the transfer of such property is exempt from donor'stax.
Ifthe taxpayer is unable to make his own return, the return may bemade by his duly authorized agent or representative or by theguardian or other person charged with care of his person orproperty, the principal and his representative or guardianassuming the responsibility of making the return and incurringpenalties provided for erroneous, false or fraudulent returns.
1.Enter all the required information in CAPITAL LETTERS usingBLACK INK. Mark applicable boxes with an "X". Two copiesMUST be filed with the BIR and one held by the taxpayer.
2.Indicate Taxpayer Identification Number (TIN) and registered nameon each page.
3. For all questions wherein anappropriate box is provided for a possible answer, mark theapplicable box corresponding to the chosen answer with an "X";and
4. Required information wherein the space providedhas a letter separator, the same must be supplied with CAPITALLETTERS where each character (including comma or period) shalloccupy one box and leave one space blank for every word. However,if the word is followed by a comma or period. Do Not write "NONE"or make any other marks in the boxes.
| PART NO. | PARTS | PAGE NO. |
| I | BackgroundInformation | 1 |
| II | Total TaxPayable | 1 |
| III | Details ofPayment | 1 |
| IV | Computationof Income Tax-REGULAR RATE | 2 |
| V | Summary ofIncome Tax Due | 3 |
| VI | Tax ReliefAvailment | 3 |
| VII | OtherRelevant Information - SPOUSE | 4 |
| VIII | Information- External Auditor/Accredited Tax Agent | 4 |
| IX | ConsolidatedComputation by Tax Regime | 5 |
| X | Mandatoryattachments for Exempt/Special Tax Regime per Activity USETHIS IF THERE ARE MORE THAN ONE EXEMPT AND/OR SPECIAL TAXREGIME. Consolidate the amounts of all MandatoryAttachments PER TAX REGIME and reflect the same to thecorresponding schedules and columns of Part IX. | 1 to 4M |
| SCHED NO. | SCHEDULES | PAGE NO. |
| 1 | GrossCompensation and Tax Withheld | 6 |
| 2 | Sales/Revenues/Receipts/Fees | 6 |
| 3 | OtherTaxable Income Not Subjected to Final Tax | 6 |
| 4A | Cost ofSales (For those Engaged in Trading) | 6 |
| 4B | Cost ofSales (For those Engaged in Manufacturing) | 7 |
| 4C | Cost ofServices | 7 |
| 5 | Non-OperatingIncome | 7 |
| 6 | OrdinaryAllowable Itemized Deductions | 7-8 |
| 7 | SpecialAllowable Itemized Deductions | 9 |
| 8 | Computationof Net Loss Carry Over (NOLCO) | 9 |
| 9 | TaxCredits/Payments-Attach proof | 10 |
| 10 | BalanceSheet | 10 |
| 11A | TaxFiler's-Reconciliation of Net Income per Books AgainstTaxable Income | 11 |
| 11B | Spouse's-Reconciliationof Net Income per Books Against Taxable Income | 11 |
| 12 | SupplementalInformation | 12 |
Item 1 Indicate thetaxable year covered by the return being filed;
Item 2 Choose "Yes" if the tax return is one amending theprevious return filed, "No" if not;
Item3 Choose "Yes" if the return is made for a fractional part of ayear (e.g. commencement or retirement); and
Item4 Indicate the appropriate Alphanumeric Tax Code(ATC).
Item 5 TaxpayerIdentification Number (TIN): Enter your TIN. Your Spouse's TIN isentered in Item 95. If you do not have a TIN, apply for one beforefiling using Application for Registration-For Self-Employedand Mixed Income Individuals, Estates and Trusts (BIR Form No1901).
Item 6 RDO Code: Enter theappropriate code for your RDO per BIR Form No.1901 and/orCertificate of Registration (BIR Form No. 2303).
Item 7 Tax Filer Type: Mark applicable boxes with an "X".
Item 8 - Tax filer's Name: Enter your Last Name,First Name, Middle Name for individuals/ ESTATE of Fist Name,Middle Name, Last Name/ TRUST FAO First Name, Middle Name, LastName as it was entered on your BIR Form Nos. 1901/1905/2303.
Item 9 - Trade Name: Indicate trade name as shownin the Department of Trade and Industry's Certificate ofRegistration, Mayor's Permit etc.
Item10 - Registered Adress: Enter Registered Address as indicated inyour BIR Form No. 2303. If you have moved since your previousfiling and have NOT updated your registration, you must updateyour registration by filing filing BIR Form No. 1905. In themeantime, accomplish Part VIIB on page 4 of this ITR.
Item 17 - Main Line of Business: Indicate the nature of thebusiness the taxpayer is engaged in as indicated in the BIR Form2303.
Item 18-19 PSIC/PSOC Code: Indicatethe Philippine Standard Industrial Classification (PSIC) Codeand/or Philippine Standard Occupational Classification (PSOC)Code. Refer to www.bir.gov.ph for your applicablePSIC/PSOC or visit the local BIR Office.
Item20- Method of Deduction: Choose either Itemized Deduction underSection 34(A-J), NIRC or Optional Standard Deduction (OSD), which40% of Gross Sales/Receipts/Revenues/Fees/ under Section 34(L),NIRC as amended by RA 9504.The chosen method of deduction used inthe first quarter of the year shall be consistently appliedthroughout the year.
Item 21-23: Markapplicable boxes with an "X".
Item24-25 - Claiming Additional Exemption: An individual shall beallowed an additional exemption of P25,000 for each qualifieddependent child, but not exceeding four (4). The additionalexemption for dependents shall be claimed by the husband, who isdeemed the proper claimant unless he explicitly waives his rightin favor of his wife. In the case of legally separated spouses,additional exemption may be claimed only by the spouse who hascustody of the child or children; Provided, that the totalamount of additional excemptions that may be claimed by both shallnot exceed the maximum additional exemption allowed by the TaxCode.
"Qualified Dependent Child" meansa legitimate, illegitimate or legally adopted child chieflydependent upon and living with the taxpayer if such dependent isnot more than twenty-one (21) years of age, unmarried and notgainfully employed or if such dependent, regardless of age, isincapable of self-support because of mental or physical defect. Ifyou mark "yes" for Item 24, you must enter the number of DependentChildren you are claiming in Item 25, and then provide therequired information for each child in Part VIIA.
Shouldyou have additional dependent(s) during the taxable year, you mayclaim the corresponding additional exemption, as the case may be,in full for such year. If the taxpayer dies during the taxableyear, his estate may still claim the personal and additionalexemptions for himself and his dependent(s) as if he died at theclose of such taxable year.
Ifthe spouse or any of the dependents dies or if any of suchdependents marries, become twenty-one (21) years old or becomesgainfully employed during the taxable year, the taxpayer may stillclaim the same exemptions as if the spouse or any of thedependents died, or as if such dependents married, becometwenty-one (21) years old or became employed at the close of suchyear.
Completefirst Part IV - Computation of Income Tax on Page 2 beforeaccomplishing these items. Then transfer the information from PartIV to each of the items. Individual instructions as to the sourceof the information and the necessary calculations are provided oneach line item.
Overpayment Line: Anexcess of the total tax credits/payments over the actual incometax due computed in the final adjusted return may be refunded orissued with the Tax Credit Certificate to the taxpayer or creditedagainst its estimated income tax liabilities for the quarters ofsucceeding taxable years. The taxpayer shall exercise its optionby placing an "X" in the appropriate box, which option shall beconsidered irrevocable for that taxable period. Thus, once thetaxpayer opted to carryover and apply the excess income taxagainst income tax due for the succeeding taxable year, noapplication for cash refund or issuance of a tax creditcertificate shall be allowed. In case the taxpayer fails tosignify its choice, the excess payment shall be automaticallycarried-over to the next taxable period.
SignatureLine: When all pages of the return are complete, sign the returnin the place indicated, enter the number of pages filed in Item33. In Items 34-37, provide the required information about yourGovernment Issued ID and its details.
Enterthe information required and then file your original ITR plustwo(2) copies to any AAB within RDO where registered. Refer to www.bir.gov.ph for your applicable AAB or visit the local BIR Office.
For no payment returns, proceed with filing your ITR with the RDOwhere the taxpayer is registered or the concerned RCO under thesame RDO.
Atthe top of this page and in all succeeding pages that you arefiling, enter your TIN and Last Name. The requirement for enteringcentavos on your ITR has been eliminated. If the amount ofcentavos id 49 or less, drop down the centavos(e.g.P100.49=P100.00). If the amount is 50 centavos or more, round upto the next peso (P100.50=P101.00).
Generally,for all the lines in this part you need to complete theappropriate scheduled and then transfer the sub-totals to theappropriate line. On the other lines make the appropriatecalculations as directed and enter the totals.
Item 44 Premium Payment on Helth and/or HospitalizationInsurance: The amount of premiums not to exceed Two ThousandFour Hundred Pesos (P2,400) per family or Two Hundred Pesos (P200)a month paid during the taxable year for health and/orhospitalization insurance taken by the tax filer for himself,including his family, shall be allowed as a deduction from hisgross income; Provided that the said family has a grossincome of not more than Two Hundred Fifty Thousand Pesos(P250,000) for the taxable year; Provided, finally that inthe case of married tax filers, only the spouse claiming theadditional exemption for dependents shall be entitled to thiddeduction.
Item 45 and 46 Personal andAdditional Exemption:
Anindividual tax filer shall be allowed a basic personal exemptionof Fifty Thousand Pesos (P50,000). In the case of marriedindividuals where only one of the spouses is deriving income, onlysuch spouse shall be allowed the personal exemption.
Anindividual shall be allowed an additional exemption of P25,000 foreach qualified dependent child, not exceeding four(4). Theadditional exemption for dependents shall be claimed by thehusband, who is deemed the proper claimant unless he explicitlywaives his right in favor of his wife.
AnEstate or Trust shall be allowed an exemption of TwentyThousand Pesos (P20,000).
Item 57 to 59Deductions Allowed under Existing Laws: May choose either theitemized or optional optional standard deduction, subject toREGULAR TAX RATES only. It shall indicate the choice by markingthe with an "X" the appropriate box, otherwise, it shall beconsidered as having availed of the itemized deduction. Suchchoice made in the initial quarterly return during the taxableyear is irrevocable for the said year for which the return ismade. The ordinary and special deductions are discussed furtherunder the appropriate schedule. Itemized deductions only, ifsubject to REGULAR and SPECIAL/EXEMPT Tax Regime.
Item 61 Optional Standard Deduction (OSD): A maximum of 40%of the Total sales/Revenue Receipts/Fees in Item 52 shall beallowed as deduction in lieu of the itemized deduction if thesubject to REGULAR Income Tax Regime Only. However,individuals who availed and claimed this deduction is no longerrequired to submit its financial statements when it files itsannual tax return and to keep such records pertaining to its grossincome.
Item 67 The regular/normalgraduated rate of income tax is 5-32% of net taxable income.
Complete the appropriate schedules and then transfer the sub-totals to the appropriate line from Part IV - Computation of Income Tax- Regular Rate, and Part IX- Consolidated Computation by Tax Regime.
Penalties shall be imposed and collected as part of the tax
Item 81 - Surcharge:
1) A surcharge of twenty five percent (25%) for each of the following voilations:
a)Failure to file any return any return and pay the amount of tax or installment due on or before the due dates;
b) Unless otherwise authorized by the Commissioner, filing a return with a person or office other than those with whom it is required to be filed;
c) Failure to pay the full or part of the amount of the tax shown on the return, or the full amount of tax due for which no return is required to be filed, on or before the due date;
d) Failure to pay the deficiency tax within the time prescribed for its payment in the notice of assesment.
2) A surcharge of fifty percent (50%) of the basic tax or of the deficiency tax shall be imposed in case of willful neglect to file the return within the period prescribed by the Tax Code and/or by rules and regulations or in case a false or fraudaulent return is filed.
Item 82 - Interests: Interest at the rate of twenty percent (20%) per annum on any unpaid amount of tax, from the date prescribed for the payment until it is fully paid.
Item 83 - Compromise: This penalty is pursuant to existing/ applicable revenue issuances.
Taxpayer availing of any tax relief under the Tax Code must fill-up Items 86-94.
For ECONOZONES: Gross Income shall refer to gross sales or gross revenue derived from registered business activity within the zone, net of sales discounts, sales returns and allowances minus cost of sales or direct costs but before any deductions for administrative, marketing, selling, operating expenses or incidental losses during a given taxable period.
For BCDA: Gross Income shall refer to gross sales or gross revenue derived from registered business activity within the zone, net of sales discounts, sales returns and allowances minus cost of sales or direct costs but before any deductions for administrative, marketing, selling, operating expenses or incidental losses during a given taxable period. For those engaged in financial enterprises, gross income shall include interest income, gains from sales and other income net of costs of funds.
Item 89 Other Special Tax Credit refers to tax credit allowed under special laws, rules and issuances.
SPOUSE: Follow similar procedures as that of the tax filer, if any.
Part VIIA - Qualified Dependent Children: if wife is claiming for additional exemption, please attach waiver of the husband.
Part VIIB - Current Address: Accomplish if current address is different from registered address in Item 10.
All returns filed by an accredited tax agent on behalf of a taxpayer shall bear the following information:
a) For CPAs and others (individual practitioners and members of GPPs);
Items 112 & 114: Name and Taxpayer Identification Number(TIN):
Items 116-118: BIR Accreditation Number, Date of Issuance, and Expiry Date.
b) For members of the Philippine Bar(individual practitioners, members of GPPs);
Items 112 & 114: Name and Taxpayer Identification Number(TIN):
Items 116-118: BIR Accreditation Number, Date of Issuance, and Expiry Date.
If you are under regular rate only, do not accomplish Part IX, instead, proceed directly to Schedules-Regular Rate(Schedules 1 to 12B).
Part X - is applicable only for those with income subject to multiple tax regimes. However, you must first complete appropriate schedules from part X-Mandatory Attachments for Exempt/Special Tax Regimes per Activity pages1m to 5m, including the schedules - Regular Rate (Schedules 1 to 12B), if applicable. Accomplish as many PART X as there are activities/programs per TAX REGIME. Consolidate the amounts PER TAX REGIME under EXEMPT and/or SPECIAL from all of PART X-Mandatory Attachments which shall be reflected in the appropriate items of columns B and/or Cfor the Tax filer, and columns F and/or G for the spouse, if applicable.
Subsequently, transfer the applicable Items to Part V, and finally to Part II[Back]
The information provided in all of the schedules must be supported by the appropriate documents.
Schedule 1 - Gross Compensation Income and Tax Withheld of tax filer and/or Spouse.
Schedule 2-5 - Fill-up the information provided in the appropriate schedules and must be supported by the appropriate documents.
Schedule 6 - Ordinary Allowable Itemized Deductions (Attach additional sheets, if necessary): There shall be allowed as deduction from gross income all the ordinary and necessary trade and business expenses paid or incurred during the taxable year in carrying on or which are directly attributable to the development, management, operation and/or conduct of the trade and business. Itemized deduction includes also intersest, taxes, losses, bad debts, depreciation, depletion, charitable and other contributions, research and development and pension trust.
Schedule 7 - Special Allowable Itemized Deductions: There shall be allowable deduction from gross income in computing taxable income, in addition to the regular allowable itemized deduction, as provided under the existing regular allowable and special laws, rules and issuances such as, but not limited to, Rooming-in and Breast-feeding Practices under R.A. 7600, Adopt-A-School Program under R.A. 8525, Expanded Senior Citizens Act under R.A. 9257, Free Legal Assistance under R.A. 9999.
Schedule 8 - Computation of Net Loss Carry Over: Detailing the computation of available NOLCO (applied, unapplied and expired portion). Only net operating losses incurred by the qualified taxpayer may be carried over to the next three (3) immediately succeeding taxable years following the year of such loss.
Schedules 9 - Tax Credits/Payments: Indicate the amounts as shown in the Audited Financial Statements.
Schedule 10 - Balance Sheet: Indicate the amounts as shown in the Audited Financial Statements.
Schedule 11 - Reconciliation of Net Income per Books Against Taxable Income Tax Filer/Spouse: Indicate all the reconciling items in the financial statements added or subtracted from the net income reported in the financial statements which is to arrive at the taxable income reported in the income tax return. For the taxpayer subject to regular rate, fill up the non-deductible expenses such as: allowance for bad debts not actually written off, amortization and others which are non-deductible for taxation purposes Also, add other taxable income such as: recovery of bad debts previously written off, adjustment to retained earnings, and other adjustments that are considered as income for tax purposes.
Schedule 12A - Gross Income/Receipts Subjected to Final Withholding: Indicate the income/receipt of interests; royalties; dividends; prizes and winnings; fringe benefits; compensation subject to 15% preferential rate; sale/ exchange of real property; sale/exchange of shares of stock; other income and the corresponding final tax withheld/paid, if applicable.
Schedule 12B - Gross income/Receipts Exempt from Income Tax - Indicate personal/real properties received thru gifts, bequests, and devises; and other exempt income and receipts under Sec. 32(B) of the NIRC, as amended.
