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
|