What is BIR Form 1702Q – Quarterly Income Tax?

BIR Form 1702Q is the Quarterly Income Tax Return filed by corporations, partnerships, and other non-individual taxpayers in the Philippines. It is submitted within 60 days after the close of each of the first three quarters of the taxable year. The annual return (BIR Form 1702RT) covers Q4 and the full year.

Filing 1702Q can feel complicated. Between figuring out the right tax rate, gathering five different attachments, and tracking a deadline that shifts each quarter, there’s a lot to keep straight. This guide covers exactly who must file, when, what to attach, and what happens if you miss the deadline.

Who must file BIR Form 1702Q?

The following entities are required to file 1702Q each quarter:

• Domestic corporations organized under Philippine law
• Resident foreign corporations doing business in the Philippines
• Non-resident foreign corporations earning income from sources within the Philippines
• General and limited partnerships (but not general professional partnerships; see below)
• Joint ventures and consortia, except those formed for construction or energy projects under a government service contract
• Government-owned and controlled corporations (GOCCs) and their subsidiaries
• Associations and joint stock companies

Who does NOT file 1702Q?

General Professional Partnerships (GPPs) like law firms, accounting firms, or medical practices organized as partnerships are exempt from quarterly filing. They file only once a year using BIR Form 1702, together with their Audited Financial Statements.

Foreign corporations not engaged in trade or business in the Philippines are also exempt from 1702Q.

Not sure which form applies? If you’re a sole proprietor or freelancer, you file BIR Form 1701Q instead. See Taxumo’s BIR Form 1701Q FAQs for more details.

Required attachments for BIR Form 1702Q

Along with the completed 1702Q form, you must submit the following:

• BIR Form 2307 (Certificate of Creditable Tax Withheld at Source): issued by clients or payors who withheld tax on your income
• BIR Form 2304 (Certificate of Income Payments Not Subject to Withholding Tax): for income received without any tax withheld
• SAWT (Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source): a summary list of all clients who withheld tax from you
• Duly approved Tax Debit Memo: only needed if you are applying a previous tax credit to this quarter’s dues
• Certificate of Tax Treaty Relief: only required if claiming relief under a tax treaty between the Philippines and another country

If you use Taxumo, the SAWT and 2307 summary attachments are generated automatically from the income and expense entries you’ve already recorded. No manual compilation needed.

How to pay your 1702Q tax due

Tax due under 1702Q must be paid at the time of filing. You can pay through:

• AAB (Authorized Agent Banks): Pay over the counter at any BIR-accredited bank. You receive an Electronic Revenue Official Receipt (eROR) as proof.
• RDO or Revenue Collection Officer: If your RDO has no nearby AAB, pay directly with the Revenue Collection Officer or the city/municipal treasurer.
• eFPS (Electronic Filing and Payment System): Large taxpayers and those enrolled in eFPS must file and pay electronically. Deadlines for eFPS filers are staggered by industry group, so check your RDO for your specific due date.
• Online tax platforms like Taxumo: File and pay through e-wallet, debit/credit card, or installment, without visiting a bank or RDO.

Penalties for late filing of 1702Q

Missing the 1702Q deadline is expensive. Under the National Internal Revenue Code (NIRC), late filers face:

• 25% surcharge on the amount of tax due
• 12% annual interest on the unpaid tax, computed from the deadline until full payment
• Compromise penalty of up to ₱25,000 per violation, depending on the amount involved

Even if your corporation had zero income for the quarter, you are still required to file a “zero return.” Failure to do so can result in a minimum ₱1,000 compromise penalty and an open-case flag in BIR’s system that can complicate future transactions.

Filing 1702Q manually vs. using an online platform

Most corporations filing 1702Q still do it the traditional way: compute the tax rate themselves (20% for corporations with net taxable income up to ₱5M and total assets up to ₱100M, or 25% for those above), compile attachments separately, and pay in person at a bank or RDO. Online platforms like Taxumo handle the computation, attachment generation, and eFPS submission in one place. Here’s how the two compare:

1702Q isn’t the most complicated form out there, but between tracking the deadline, pulling together five attachments, and making sure your tax rate is right, it adds up fast. Especially when you’re doing it every quarter. That’s where a lot of corporations have started using Taxumo.

It handles the computation, generates your attachments automatically, and files directly to eFPS, so you’re not chasing paperwork every 60 days. If you haven’t tried it yet, it’s worth a look before your next filing.