The Bureau of Internal Revenue (BIR) just recently issued to authorized the use new BIR forms for income tax returns (ITRs) filing covering and starting the Taxable Year ended December 31, 2013.
Under Section 3 of this revenue regulations, all taxpayers required to file their ITRs under Section 51 (A)(1) of the Tax Code and those not required to file under Section 51 (A)(2) but who opted to do so, covering and starting taxable year ended December 31, 2013 shall use the applicable forms as follows:
1. BIR Form No. 1700 version June 2013 (Annual Income Tax Return for Individuals Earning Purely Comensation Income);
2. BIR Form No. 1701 version June 2013 (Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts);
3. BIR Form No. 1702-RT version June 2013 (Annual Income Tax Return for Corporations, Partnerships and Other Non-Individual Taxpayers Subject Only of the REGULAR Income Tax Rate);
4. BIR Form No. 1702-EX version June 2013 (Annual Income Tax Return for Use Only by Corporations, Partnerships and Other Non-Individual Taxpayers 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); and
5. BIR Form No. 1702-MX versions June 2013 (Annual Income Tax Return for Corporations, Partnerships and Other Non-Individuals with Mixed Income Subject to Multiple Income Tax Rate or with Income Subject to Special/Preferential Rate).
It also stated in Section 4 of this regulations the rounding to the nearest peso in the ITR. If the amount of centavos is 49 or less, drop down the centavos (e.g., P100.49 = P100). If the amount is 50 centavos or more, round up to the next peso (e.g., P100.50 = P101.00).
In addition, under Section 5 of this regulations requires the mandatory itemized deductions as follows:
A. Corporations, partnerships and other non-individuals are mandated to use the itemized deductions in the following cases:
1. Those exempt under the Tax Code, as amended (Section 30 and those exempted under Section 27(C)) and other special laws, with no other taxable income;
2. Those with income subject to special/preferential tax rates; and
3. Those with income subject to income tax rate under Section 27(A) and 28(A)(1) of the Tax Code, as amended, and also with income subject to special/preferential tax rates.
Juridical entities whose taxable base is the gross revenue or receipts (e.g., non-resident foreign international carriers) are not entitled to the itemized deductions nor to the optional standard deduction (OSD) under Section 34(L) of the Tax Code, as amended.
B. Individual taxpayers who are not entitled to avail of the OSD and thus use only the itemized deduction method are as follows:
1. Those exempt under the Tax Code, as amended, and other special laws with no other taxable income (e.g Barangay Micro Business Enterprise (BMBE));
2. Those with income subject to special/preferential tax rates; and
3. Those with income subject to income tax rate under Section 24 of the Tax Code, as amended, and also with income subject to special/preferential tax rates.
Please refer ftp://ftp.bir.gov.ph/webadmin1/pdf/82199RR%20No%20%202-2014.pdf of the full text of Revenue Regulations No. 2-2014 and BIR Form 1700; BIR Form 1701;BIR Form 1702-RT;BIR Form 1702-EX &BIR Form 1702-MX of the New Income Tax Forms covering and starting the Taxable Year ended December 31, 2013.
