Having a small business or being a freelancer is bound to paying taxes in the Philippines. Last year I decided to get serious about my blogging and organizing Bloggers event as a Sole Proprietor Business.
The filing is never easy especially for a first timer like me. I made a lot of mistakes and talked to different staff almost every day just to ask info about what forms should I fill up and how much tax I’m bound to pay quarterly and annually.
Filing your ITR
Before I dive in into more details, the first thing you need to remember that the last day of filing your Annual ITR to your respective BIR office is on or before April 15th.
For Business Owners and Freelancers you need to file your 1701A. In the previous year, this is called 1701 with 12 pages that you need to fill up however this year 2019, it is more simplified and you only need to fill up 2 pages. Everything is done online.
Download the Newest eBIR form v7.3.1
After downloading the newest version of eBIR form extract the zip file and install it. After doing so, open the BIR form icon and input your TIN number and other needed info in the first page and choose 1701A form then click Fill up.
Make sure to change the year, and answer the necessary info in your 1701 form. Again, there are only 2 pages in this form and you just need to input your Gross Income and Other allowable deduction on the 2nd page then automatically it will compute how much tax you need to pay or how much is your returns after clicking Validate.
Next step is to click save a copy and before sending recheck your form. If everything is correct send it. Make sure on the very first page you input your updated and working email because after sending your form online to the BIR system.
You will receive a confirmation email that you have successfully filed your form within 24 hours and you have to wait for 1 to 3 business days for the confirmation of the BIR that they have validated it.
The last step, once you received the email that BIR has validated your 1701A, you will need to print 3 copies of that form and go to your RDO, 2 copies will be given to the BIR and the 3rs copy is your yours. All 3 copies should have received STAMP by the BIR personnel.
For taxpayers with annual gross income of less than 250,000 Pesos, you have nothing to pay for taxes however 250,000 Pesos and above are bound for paying taxes.
Non-tax payers or non-filing your form on the right date or due date has a corresponding fine and surcharges. So make sure to always file your needed forms on or before the due date.
Also, check at your RDO office if you have an OPEN CASE and do not hesitate to ask questions to the OFFICER OF THE DAY or any person in the BIR Office employees. Here in Las Pinas every Thursday at 9 in the morning they are conducting a seminar for new business owners and taxpayers.