BIR Form 1701
BIR Form 1701, or the Annual Income Tax Return for Individuals, is the tax form used to report total income from the previous calendar year. It is designed for taxpayers who use the itemized deduction method or those who earn income from multiple sources.
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Time Left To File
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About Form 1701
Full Name | Annual Income Tax Return |
Issued by | Bureau of Internal Revenue (BIR) |
Current Version | January 2018 (ENCS) |
Who must File | This applies if you fall under any of the following categories:
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VAT Threshold | This applies if your gross annual sales or receipts exceed ₱3M which is the current statutory threshold requiring an individual or business to register as a VAT taxpayer. Once you cross this ₱3M limit, you are no longer eligible for the 8% flat income tax rate for small businesses and must generally use Form 1701 for your annual filing to accurately reflect your VAT-registered status and business expenses. |
Filing Channel | eFPS, eBIRForms, or online tax software providers (TSPs) like Taxumo. |
Deadline
*Dates above are the Bureau of Internal Revenue’s (BIR) official deadlines. Taxumo sets its deadlines 2-3 days prior to ensure your filings are processed and submitted on time.
Frequently Asked Questions
Use 1701A if you earn purely from your business/profession AND use the 8% Flat Tax Rate or OSD.
Use 1701 if you are a Mixed-Income Earner or use Itemized Deductions, regardless of your income level.
To file BIR Form 1701 in Taxumo:
- Enter your data: Log all your business income, expenses, and withholding taxes (from Form 2307) into Taxumo’s cash flow. Mixed-income earners also need to input their employment income.
- Go to Tax Dues: On your dashboard, click “File Now” next to the Form 1701 card.
- Answer questions: Confirm details like prior year credits and manually input quarterly tax payments if you didn’t use Taxumo for them.
- Review and Pay: Verify the tax summary computed by Taxumo. Then, choose your payment method (e.g., credit card, online wallets) to pay the tax due and filing fee.
- Get confirmation: Taxumo will submit your return to the BIR and send you the confirmation receipt once processed.
OSD: A flat deduction of 40% of your gross sales. You don’t need to track receipts for expenses.
Itemized: You deduct actual business expenses (rent, salaries, utilities). This is only beneficial if your total expenses are higher than 40% of your income.
The most common attachments include:
BIR Form 2316: (For mixed-income earners) provided by your employer.
BIR Form 2307: (Certificate of Creditable Tax Withheld) provided by your clients.
Audited Financial Statements (AFS): Required only if your gross annual sales exceed ₱3,000,000.
Yes. If your total tax due exceeds ₱2,000, the BIR allows you to pay in two equal installments. The first is due on April 15, and the second installment is typically due on or before October 15.
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