Have you filed your income tax return?
Income tax is a tax levied on income or profits (commonly called taxable income) earned by an individual or business entity (the taxpayer). Income tax is usually calculated as the product of tax rate and taxable income. Tax rates may vary depending on the type and characteristics of the taxpayer and the type of income.
Taxable income is the portion of gross income that is used to calculate your tax liability in a particular tax year. This can be broadly described as adjusted gross income (AGI) less individual or standard deductions. Taxable income includes wages, salaries, bonuses, tips, capital gains, and various types of unearned income.
Tax Revenue is the so-called “lifeblood of the government”. The taxes we pay are used for the development and improvement of government agencies and government funds used for the livelihood of Filipinos at home and abroad.
The main purpose of taxation is to raise money for the government to provide basic public services.
Taxes go to funding;
Health services such as social care, medical research, and social security.
Funding, furnishing, and maintaining the public education system.
Pay public servants, police officers, members of parliaments, the postal system, and others.
Key sectors are infrastructure development, transportation, and housing.
Financing projects such as pensions, unemployment benefits, and childcare.
Use taxes as a deterrent for undesirable activities such as the consumption of liquor, and tobacco smoking.
Taxes generally contribute to the gross domestic product of a country.
Who is required to file an INCOME TAX RETURN in the Philippines?
For Individuals:
RESIDENT CITIZENS: That his earning or receiving income is from INSIDE and OUTSIDE of the Philippines.
RESIDENT & NON-RESIDENT CITIZENS ALIENS. That his earning or receiving income is from INSIDE of the Philippines.
NON - RESIDENT CITIZENS: That his earning or receiving income is from INSIDE of the Philippines.
For non-individual:
Domestic Corporation a corporation that does business in the jurisdiction in which it is incorporated.
Foreign Resident Corporations A foreign corporation that is duly licensed to engage in trade or business within the Philippines is referred to as a 'resident foreign corporation'.
Partnership An arrangement between two or more people to oversee business operations and share its profits and liabilities. In a general partnership company, all members share both profits and liabilities.
Estates & Trusts Trusts and estates are two of the primary legal structures used to transfer assets over to heirs and beneficiaries after someone dies.
Taxpayers must file their Annual ITRs:
On or before April 15 following the close of each taxable year.
The quarterly & annual filing of Income Tax Returns;
You can file your ITR using any of the following methods:
Manual Tax Filing - You can download the pdf form at their official website. - Requires a taxpayer to visit the nearest Authorized Agent Bank (AAB) of the RDO to declare their taxes.
Electronic Filing and Payment System (eFPS) - You can submit and pay the BIR form online.
Electronic BIR Forms (eBIRForms) - Digital filing process for NON-eFPS Taxpayers.
Download the offline system on their official website, where you can create the form and submit it, but you have to pay your Tax Liabilities in any BIR-accredited bank of the RDO.