Those who are corporations, partnerships, and non-individual taxpayers subject to the regular income tax rate are required to file their Annual Income Tax Return using BIR Form 1702-RT. With Taxumo, this can easily be prepared, filed, and paid online.
Full Name | Annual Income Tax Return |
Issued by | Bureau of Internal Revenue (BIR) |
Current Version | January 2018 (ENCS) |
Who must File | This form must be filed by all domestic and foreign non-individual taxpayers, including corporations and partnerships, that are subject only to the regular income tax rate. It is specifically designed for entities that do not have “mixed income” or income subject to special preferential rates, such as those registered under PEZA or the BOI. |
VAT Threshold | Non-individual taxpayers with annual gross sales or receipts exceeding ₱3.0 million are mandatorily required to register for VAT and file quarterly returns at the standard 12% rate. Those falling below this threshold are generally classified as Non-VAT and are subject to a 3% Percentage Tax instead. |
Filing Channel | eFPS, eBIRForms, or online tax software providers (TSPs) like Taxumo. |
*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.
Log in to your Taxumo account.
Check your profile and make sure you’re set to Graduated Income Tax with OSD.
Enter your annual income in the dashboard.
Review the computation – Taxumo will automatically apply the 40% OSD and calculate your tax due.
Click “File Now” to submit your 1701-RT to the BIR.
Pay online through the options inside Taxumo (bank, GCash, Maya, etc.).
Receive confirmation – Taxumo stores your BIR acknowledgement and a copy of your filed form in your account.
No, Form 1702-RT is strictly for corporations subject only to the regular income tax rate; if a company has a mix of income subject to different tax rates—such as those with PEZA or BOI registrations—they must use BIR Form 1702-MX instead. Using the incorrect form can lead to miscalculations of tax liability and may trigger a letter of authority for a tax investigation.
While corporations have the choice between itemizing actual business expenses or claiming a flat 40% Optional Standard Deduction (OSD) on gross income, the selection made on the initial quarterly return of the taxable year is irrevocable for that entire year. This means that once you choose a deduction method on the first-quarter Form 1702-Q, you must use that same method when filing the final annual Form 1702-RT to ensure consistency and compliance with BIR regulations.
While the standard Regular Corporate Income Tax (RCIT) is set at 25%, the CREATE Act allows smaller domestic corporations to apply a lower 20% rate if they meet specific financial thresholds. To qualify for this preferential rate on the form, the corporation’s total assets must not exceed ₱100 million (excluding land) and its net taxable income for the year must be ₱5 million or less.
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