Year-end Tax Reminder

Ah, the impending finale of the fiscal year! Here are some friendly reminders as you approach the tax year-end:

1. Review Financial Records: Take a thorough look at your financial records, including income statements, expenses, and receipts. Ensure everything is in order.
2. Maximize Deductions: Identify potential deductions and credits to minimize your tax liability. This could include business expenses and charitable contributions.
3. Charitable Contributions: If you’ve been generous, ensure you have documentation for your charitable contributions. It’s a win-win—helping others and potentially reducing your tax bill.
4. Business Expenses: If you’re a business owner, ensure all eligible business expenses are recorded. This includes office supplies, equipment purchases, and business-related travel.
5. Check for Tax Law Changes: Stay informed about any recent tax law changes that may impact your filing. Tax codes have a way of throwing surprises!
6. Review Withholding: Review your withholding to ensure it aligns with your tax situation. Adjustments may be needed based on changes in income or deductions

BIR Compliance Requirements:

Annual Registration Fee – BIR form No. 0605 , Deadline January 31

Submission of Inventory List – Deadline January 30

Payment/Remittance

1. Annual Information Return of Income Taxes Withheld on Compensation – BIR Form No. 1604-C
   • This return is filed by every employer or withholding agent/payor on or before January 31 of the year following the calendar year in which the compensation payment and other income payments were paid or accrued.
2. Annual Information Return of Income Payments Subjected to Final Withholding Taxes – BIR Form No. 1604-C
   • This return shall be filed by every withholding agent/payor required to deduct and withhold taxes on income payments subject to Final Withholding Tax. The tax rates and nature of income payments subject to final withholding taxes are printed in BIR Form Nos. 1601-FQ, 1602Q and 1603Q respectively. This is filed on or before January 31 of the year following the calendar year in which the income payments subject to final withholding taxes were paid or accrued.
3. Annual Information Return of Creditable Income Taxes Withheld (Expanded)/ Income Payments Exempt from Withholding Tax – BIR form No. 1604-E
   • This return is filed by every withholding agent/payor required to deduct and withhold taxes on income payments subject to Expanded Withholding Taxes, or making income payments not subject to withholding tax but subject to income tax. This is filed on or before March 1 of the year following the calendar year in which the income payments subject to expanded withholding taxes or exempt from withholding tax were paid or accrued.

Income Tax Return

For Individual

1. Annual Income Tax Return For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related Income) – BIR Form No. 1700
   • This is filed on or before April 15 of each year covering income for the preceding taxable year.
2. Annual Income Tax Return For Individuals (including MIXED Income Earner), Estates and Trusts – BIR Form No. 1701
   • This return is filed on or before April 15 of each year covering income for the preceding taxable year.
3. Annual Income Tax Return for Individuals Earning Income PURELY from Business/Profession (Those under the graduated income tax rates with OSD as mode of deduction OR those who opted to avail of the 8% flat income tax rate) – BIR Form No. 1701A
   • This return is filed on or before April 15 of each year covering income for the preceding taxable year.

For Non-Individual

1. Annual Income Tax Return For Corporation, Partnership and Other Non-Individual Taxpayer EXEMPT Under the Tax Code, as Amended, {Sec. 30 and those exempted in Sec. 27(C)} and Other Special Laws, with NO Other Taxable Income – BIR Form No. 1702-EX
   • This return is filed on or before the 15th day of the 4th month following the close of the taxpayer’s taxable year.
2. Annual Income Tax Return for Corporation, Partnership and Other Non-Individual with MIXED Income Subject to Multiple Income Tax Rates or with Income Subject to SPECIAL/PREFERENTIAL RATE – BIR Form No. 1702-MX
   • This return is filed, with or without payment, on or before the 15th day of the 4th month following the close of the taxpayer’s taxable year.
3. Annual Income Tax Return For Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate – BIR Form No. 1702-RT
   • This return is filed, with or without payment, on or before the 15th day of the 4th month following close of the taxpayer’s taxable year.