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Trunkline:
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:. Income Tax

Contents

 

Description

Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code or other special laws.



Who Are Required To File Income Tax Returns

Individuals

  • Resident citizens receiving income from sources within or outside the Philippines
    • individuals deriving compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year
    • employees deriving compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return
    • employees whose monthly gross compensation income does not exceed P5,000 or the statutory minimum wage, whichever is higher, and opted for non-withholding of tax on said income
    • individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
    • individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing
  • Non-resident citizens receiving income from sources within the Philippines
  • Citizens working abroad receiving income from sources within the Philippines
  • Aliens, whether resident or not, receiving income from sources within the Philippines

Corporations no matter how created or organized including general professional partnerships

  • domestic corporations receiving income from sources within and outside the Philippines
  • foreign corporations receiving income from sources within the Philippines

Estates and trusts engaged in trade or business



Annual Income Tax For Individuals Earning Purely Compensation Income (Including Non-Business/Non-Profession Related Income)

 

Tax Form

BIR Form 1700 - Annual Income Tax Return (For Individual Earning Purely Compensation Income Including Non-Business/Non-Profession Related Income)

Documentary Requirements

1.  Certificate of Income Tax Withheld on Compensation (BIR Form 2316)

2.  Waiver of the Husband’s right to claim additional exemption, if applicable

3.  Duly approved Tax Debit Memo, if applicable

4.  Proof of Foreign Tax Credits, if applicable

5.  Return previously filed return and proof of payment, if amended return

Procedures

1.  Fill-up BIR Form 1700 in triplicate.

2.  If there is payment:

    • Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1700, together with the required attachments and your payment.
    • In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1700, together with the required attachments and your payment.
    • Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

3.  For Refundable Returns and for tax returns with second installment:

    • Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by the BIR and present the duly accomplished BIR Form 1700, together with the required attachments.
    •  Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.

Deadline

On or before the 15th day of April of each year covering income for the preceding taxable year



Annual Income Tax For Self-Employed Individuals, Estates And Trusts (Including Those With Business And Compensation Income)

Tax Form

BIR Form 1701 - Annual Income Tax Return (For Self-Employed Individuals, Estates and Trusts Including Those With Business and Compensation Income)

Documentary Requirements

1.  Certificate of Income Tax Withheld on Compensation (BIR Form 2316), if applicable

2.  Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable

3.  Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable

4.  Waiver of the Husband’s right to claim additional exemption, if applicable

5.  Duly approved Tax Debit Memo, if applicable

6.  Proof of Foreign Tax Credits, if applicable

7.  Return previously filed return and proof of payment, if amended return

8.  Account Information Form (AIF) and the Certificate of the independent CPA or Audited Financial Statements except for taxpayers who opted for the Optional Standard Deduction (The CPA Certificate is required if the gross quarterly sales, earnings, receipts or output exceed P 150,000.00)

9.  Proof of prior year’s excess tax credits, if applicable

Procedures

1.  Fill-up BIR Form 1701 in triplicate copies.

2.  If there is payment:

    • Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1701, together with the required attachments and your payment.
    • In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1701, together with the required attachments and your payment.
    • Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer

3.  For Refundable Returns and for those returns with second installment:

    • Proceed to the Revenue District Office where you are registered or to any established Tax Filing Centers established by the BIR and present the duly accomplished BIR Form 1701, together with the required attachments.
    •  Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.

Deadline

Final Adjustment Return - On or before the 15th day of April of each year covering income for the preceding year



Account Information Form For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income , I.E., Business And Compensation Income)

Tax Form

BIR Form 1701 AIF - Account Information Form For Self-Employed Individuals, Estates and Trusts (Including those with Mixed Income, i.e., Business and Compensation Income)

NOTE: Pursuant to Revenue Memorandum Circular No. 6 – 2001, corporations, companies or persons whose gross quarterly sales, earnings, receipts or output exceed P 150,000.00 may not accomplish this form. In lieu thereof, they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules listing income-producing properties and the corresponding income therefrom, and other relevant statements duly certified by an independent CPA.

Documentary Requirements

None

Procedures

1.  Accomplish BIR Form 1701 AIF in triplicate.

2.  Attach the same to BIR Form 1701.

Deadline

Same deadline as BIR Form 1701 - On or before the 15th day of April of each year covering income for the preceding year



Quarterly Income Tax For Self-Employed Individuals, Estates And Trusts (Including Those With Mixed Income, I.E., Business And Compensation Income)

Tax Form

BIR Form 1701Q - Quarterly Income Tax Return For Self-Employed Individuals, Estates and Trusts (Including those with Mixed Income, i.e., Business and Compensation Income)

Documentary Requirements

1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable

2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable

3. Duly approved Tax Debit Memo, if applicable

Procedures

1. Fill-up BIR Form 1701Q in triplicate.

2. If there is payment:

    • Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you registered and present the duly accomplished BIR Form 1701 Q, together with the required attachments and your payment.
    • In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1701Q, together with the required attachments and your payment.
    • Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

3.  For Refundable Returns and for those returns with second installment:

    • Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by the BIR and present the duly accomplished BIR Form 1701Q, together with the required attachments.
    • Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative.

Deadlines

  • April 15 – for the first quarter
  • August 15 – for the second quarter
  • November 15 – for the third quarter



Annual Income Tax For Corporations And Partnerships

Tax Form

BIR Form 1702 - Annual Income Tax Return (For Corporations and Partnerships)

Documentary Requirements

1.  Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable

2.  Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable

3.  Duly approved Tax Debit Memo, if applicable

4.  Proof of Foreign Tax Credits, if applicable

5.  Return previously filed return and proof of payment, if amended return

6.  Account Information Form (AIF) and the Certificate of the independent CPA /or Audited Financial Statements except for taxpayers who opted for the Optional Standard Deduction. (The CPA Certificate is required if the gross quarterly sales, earnings, receipts or output exceed P150,000.00)

7.  Proof of prior year’s excess tax credits, if applicable

Procedures

1.  Fill-up BIR Form 1702 in triplicate.

2.  If  there is payment:

    • Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702, together with the required attachments and your payment.
    • In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 with the required attachments and your payments.
    • Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

3. For No Payment Returns and Refundable Returns:

    • Proceed to the Revenue District Office where you are registered or to any Tax Filing Center established by BIR and present the duly accomplished BIR Form 1702, together with the required attachments.
    • Receive your copy of the duly stamped and validated form from the RDO/Tax Filing Center representative

Deadline

Final Adjustment Return - On or before the 15th day of the fourth month following the close of the taxpayer’s taxable year



Account Information Form For Corporations And Partnerships

Tax Form

BIR Form 1702 AIF - Account Information Form (For Corporations and Partnerships)

NOTE: Pursuant to Revenue Memorandum Circular No. 6 – 2001, corporations, companies or persons whose gross quarterly sales, earnings, receipts or output exceed P 150,000.00 may not accomplish this form. In lieu thereof, they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules listing income-producing properties and the corresponding income therefrom, and other relevant statements duly certified by an independent CPA.

Documentary Requirements

None

Procedures

1. Accomplish BIR Form 1702 AIF in triplicate.

2. Attach the same to BIR Form 1702.

Deadline

Same deadline as BIR Form 1702 - On or before the 15th day of the fourth month following the close of the taxpayer’s taxable year



Quarterly Income Tax For Corporations And Partnerships

Tax Form

BIR Form 1702 Q - Quarterly Income Tax Return (For Corporations and Partnerships)

Documentary Requirements

1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable

2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable

3. Duly approved Tax Debit Memo, if applicable

Procedures

1. Fill-up BIR Form 1702 Q in triplicate.

2. If there is payment:

    • Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q, together with the required attachments and your payment.
    • In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q.
    • Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

3. For Refundable Returns and for those returns with second installment:

    • Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1702 Q, together with the required attachments.
    • Receive your copy of the duly stamped and validated form from the RDO representative.

Deadline

Corporate Quarterly Declaration - On or before the 60th day following the close of each of the quarters of the taxable year



Improperly Accumulated Earnings Tax For Corporations

Tax Form

BIR Form 1704 - Improperly Accumulated Earnings Tax Return (For Corporations)

Documentary Requirements

1. Photocopy of Annual Income Tax Return (BIR Form 1702) and Audited Financial Statements or Account Information Form of the covered taxable year duly received by the BIR; and

2. Sworn declaration as to dividends declared taken from the covered year's earnings and the corresponding tax withheld, if any

Procedures

1. Fill-up BIR Form 1704 in triplicate.

2. If there is payment:

    • Proceed to the nearest Authorized Agent Bank (AAB) of the Revenue District Office where you are registered and present the duly accomplished BIR Form 1704, together with the required attachments and your payment.
    • In places where there are no AABs, proceed to the Revenue Collection Officer or duly Authorized City or Municipal Treasurer located within the Revenue District Office where you are registered and present the duly accomplished BIR Form 1704
    • Receive your copy of the duly stamped and validated form from the teller of the AABs/Revenue Collection Officer/duly Authorized City or Municipal Treasurer.

3.  If there is no payment:

    • Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form 1704, together with the required attachments.
    • Receive your copy of the duly stamped and validated form from the RDO representative

Deadline

Within fifteen (15) days after the close of the year



Annual Income Information For Non Resident Citizens/OCWs and Seamen (For Foreign-Sourced Income)

Tax Form

BIR Form 1703 - Annual Income Information Return For Non Resident Citizens/OCWs and Seamen (For Foreign-Sourced Income)

Note: Now optional based on Revenue Regulations No. 5-2001.



Tax Rate

For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of Profession

Over

But Not Over

Rate

P10,000 5%
P10,000 P30,000 P500 + 10% of the Excess over P10,000
P30,000 P70,000 P2,500 + 15% of the Excess over P30,000
P70,000 P140,000 P8,500 + 20% of the Excess over P70,000
P140,000 P250,000 P22,500 + 25% of the Excess over P140,000
P250,000 P500,000 P50,000 + 30% of the Excess over P250,000
P500,000 P125,000 + 34% of the Excess over P500,000 in 1998

Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent (32%) on January 1, 2000.

Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment to be paid at the time the return is filed and the second installment on or before July 15 of the same year at the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is registered.

Tax Rate

Taxable Base

1. Domestic Corporations:
a. In General 32% Taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
2. Proprietary Educational Institution 10% Taxable income from all sources
3. Non-stock, Non-profit Hospitals 10% Taxable income from all sources
4. GOCC, Agencies & Instrumentalities
a. In General 32% Taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
5. National Gov't. & LGUs
a. In General 32% Taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
6. Taxable Partnerships
a. In General 32% Taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
7. Exempt Corporation
a. On Exempt Activities 0%
b. On Taxable Activities 32% Taxable income from all sources
8. General Professional Partnerships 0%
9. Corporation covered by Special Laws Rate specified under the respective special laws
a. In General 32% Taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income

*Beginning on the 4th year immediately following the year in which such corporation commenced its business operations, when the minimum corporate income tax is greater than the tax computed using the normal income tax.

Tax Rate

Taxable Base

10. International Carriers 2.5% Gross Philippine Billings
11. Regional Operating Head 10% Taxable Income
12. Offshore Banking Units (OBUs) 10% Gross Taxable Income On Foreign Currency Transaction
32% On Taxable Income other than Foreign Currency Transaction
13. Foreign Currency Deposit  Units (FCDU) 10% Gross Taxable Income On Foreign Currency Transaction
32% On Taxable Income other than Foreign Currency Transaction
In General
Over But Not Over
P10,000 5%
P10,000 P30,000 P500 + 10% of the Excess over P10,000
P30,000 P70,000 P2,500 + 15% of the Excess over P30,000
P70,000 P140,000 P8,500 + 20% of the Excess over P70,000
P140,000 P250,000 P22,500 + 25% of the Excess over P140,000
P250,000 P500,000 P50,000 + 30% of the Excess over P250,000
P500,000 P125,000 + 34%* of the Excess over P500,000 in 1998.

Note: Effective January 1, 1999, the maximum rate shall be thirty-three percent (33%) and thirty-two percent (32%) on January 1, 2000.

Passive Income
1. Interest on any peso bank deposit 20%
2. Royalties (except on books as well as literary & musical composition - 10%) 20%
3. Prizes (except prizes amounting to P10,000 or less -5%) 20%
4. Winnings (except from PCSO and lotto) 20%
5. Interest Income of Foreign Currency Deposit 7.5%
6. Interest from long-term deposit
Holding Period
- Four (4) years to less than five (5) years 5%
- Three (3) years to less than four (4) years 12%
- Less than three (3) years 20%
7. Cash and/or Property Dividends
Beginning January 1, 1998 6%
Beginning January 1, 1999 8%
Beginning January 1, 2000 & thereafter 10%
8. On capital gains presumed to have been realized from sale, exchange or other disposition of real property (capital asset) 6%
9. On capital gains for shares of stock not traded in the stock exchange
- Not over P100,000 5%
- Any amount in excess of P100,000 10%

B. For Non-Resident Aliens Engaged in Trade or Business

1. On Certain Passive Income* 20%
2. Interest Income from long time deposits

Holding Period

-Four (4) years to less than five (5) years 5%
-Three (3) years to less than four (4) years 12%
-Less than three (3) years 20%
3. On capital gains presumed to have been realized from the sale, exchange or other disposition of real property 6%
4. On capital gains for shares of stock not traded in the Stock Exchange
- Not over P100,000 5%
- Any amount in excess of P100,000 10%

*Cash and/or Property Dividends, Share in the distributable net income of the partnership, Interest on any bank deposits, Royalties (except on books as well as literary works and musical composition), Prizes (except prizes amounting to P10,000 or less), Winnings

C) For Non-Resident Aliens Not Engaged in  Trade or Business

1. On the gross amount of income derived from all sources within the Philippines 25%
2. On capital gains presumed to have been realized from the exchange or other disposition of real property located in the Phils. 6%
D) Aliens Employed by Regional Headquarters (RHQ), Regional Operating (ROH), Offshore Banking Units (OBU), Petroleum Service Contractors and Subcontractors 15%
E) General Professional Partnerships 0%
F) Domestic Corporations
1) a. In General 32%
    b. Minimum Corporate Income Tax 2%
    c. Improperly Accumulated Earnings 10%
2) Proprietary Educational Institution 10%
3) Non-stock, Non-profit Hospitals 10%
4) GOCC, Agencies & Instrumentalities
   a. In General   32%
   b. Minimum Corporate Income Tax 2%
   c. Improperly Accumulated Earnings 10%
5) National Gov't & LGUs
   a. In General 32%
   b. Minimum Corporate Income Tax 2%
   c. Improperly Accumulated Earnings 10%
6) Taxable Partnerships
   a. In General 32%
   b. Minimum Corporate Income Tax 2%
   c. Improperly Accumulated Earnings 10%
7) Exempt Corporation
   a. On Exempt Activities 0%
   b. On Taxable Activities 32%
8) Corporation covered by Special Laws Rate specified under the respective special laws

 
G) Resident Foreign Corporation
1)a. In General 32%
   b. Minimum Corporate Income Tax 2%
   c. Improperly Accumulated Earnings 10%
2) International Carriers 25%
3) Regional Operating Headquarters 10%
4) Corporation Covered by Special Laws Rate specified under the respective special laws
5) Offshore Banking Units (OBUs) 10%
6) Foreign Currency Deposit Units (FCDU) 10%



Related Revenue Issuances

RR No. 4-95, RR No. 4-96, RR No. 5-97, RR No. 1-98



Codal Reference

Sections 23-59, 67-73 and 74-77 of the National Internal Revenue Code



Frequently Asked Questions

 

1) What is income?

 

Income means all wealth, which flows into the taxpayer other than as a mere return of capital.

 

2) What is Taxable Income?

 

Taxable income means the pertinent items of gross income specified in the Tax Code less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code or other special laws.

 

3) What is Gross Income?

 

Gross income means all income derived from whatever source.

 

4) What comprises gross income?

 

Gross income includes, but is not limited to the following:

  • Compensation for services, in whatever form paid, including but not limited to fees, salaries, wages, commissions and similar item
  • Gross income derived from the conduct of trade or business or the exercise of profession
  • Gains derived from dealings in property
  • Interest
  • Rents
  • Royalties
  • Dividends
  • Annuities
  • Prizes and winnings
  • Pensions
  • Partner's distributive share from the net income of the general professional partnerships

5) What are some of the exclusions from gross income?

  • Life insurance
  • Amount received by insured as return of premium
  • Gifts, bequests and devises
  • Compensation for injuries or sickness
  • Income exempt under treaty
  • Retirement benefits, pensions, gratuities, etc.
  • Miscellaneous items
  • income derived by foreign government
  • income derived by the government or its political subdivision
  • prizes and awards in sport competition
  • prizes and awards which met the conditions set in the Tax Code
  • 13th month pay and other benefits
  • GSIS, SSS, Medicare and other contributions
  • gain from the sale of bonds, debentures or other certificate of indebtedness
  • gain from redemption of shares in mutual fund

6) What are the allowable deductions from gross income?

 

Except for taxpayers earning compensation income arising from personal services rendered under an employer-employee relationships where the only deduction up to a maximum limit of P 2,400 per year per family is the premium payment on health and/or hospitalization insurance, a taxpayer may opt to avail any of the following allowable deductions from gross income:

  • Optional Standard Deduction - an amount not exceeding 10% of the gross income; or
  • Itemized Deductions which include the following:
  • Expenses
  • Interest
  • Taxes
  • Losses
  • Bad Debts
  • Depreciation
  • Depletion of Oil and Gas Wells and Mines
  • Charitable Contributions and Other Contributions
  • Research and Development
  • Pension Trusts

In addition, individuals who are either earning compensation income, engaged in business or deriving income from the practice of profession are entitled to personal and additional exemptions as follows:

Personal Exemptions:

For single individual or married individual judicially decreed as legally separated with no qualified dependents…………………………………………...P 20,000.00

For head of family………………………………….....P 25,000.00

For each married individual *……………………... .P 32,000.00

Note: In case of married individuals where only one of the spouses is deriving gross income, only such spouse will be allowed to claim the personal exemption.

Additional Exemptions

  • For each qualified dependent, an P 8,000 additional exemption can be claimed but only up to 4 qualified dependents
  • The additional exemption can be claimed by the following:
  • The husband who is deemed the head of the family unless he explicitly waives his right in favor of his wife
  • The spouse who has custody of the child or children in case of legally separated spouses. Provided, that the total amount of additional exemptions that may be claimed by both shall not exceed the maximum additional exemptions allowed by the Tax Code.
  • The individuals considered as Head of the Family supporting a qualified dependent

The maximum amount of P 2,400 premium payments on health and/or hospitalization insurance can be claimed if:

  • Family gross income yearly should not be more than P 250,000
  • For married individuals, the spouse claiming the additional exemptions for the qualified dependents shall be entitled to this deduction

7) Who are required to file the Income Tax returns?

  • Individuals
    • resident citizens receiving income from sources within or outside the Philippines
    • individuals deriving compensation income from 2 or more employers, concurrently or successively at anytime during the taxable year
    • employees deriving compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return
    • employees whose monthly gross compensation income does not exceed P5,000 or the statutory minimum wage, whichever is higher, and opted for non-withholding of tax on said income
    • individuals deriving pother non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax
    • individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing
    • non-resident citizens receiving income from sources within the Philippines
    • citizens working abroad receiving income from sources within the Philippines
    • aliens, whether resident or not, receiving income from sources within the Philippines
  • Corporations no matter how created or organized including general professional partnerships
    • domestic corporations receiving income from sources within and outside the Philippines
    • foreign corporations receiving income from sources within the Philippines
  • Estates and trusts engaged in trade or business

8) Who are not required to file Income Tax returns?

  • An individual whose gross income does not exceed his total personal and additional exemptions