Note: Prior to reading this, you should still read your readings on the book.

This is just a
summary. Thank you.

General requirements of income tax returns

1. Must be V and under oath
2. Must be filed by Taxpayer or his AA or R
3. Must be filed in T and in the form prescribed by BIR
4. Must cover a maximum period of one year only except when otherwise specially
authorized by L

Individual taxpayers
Individuals required to file
A. The following are NOT Q for S Filing
1. 2 or more employers C or S at any time during the taxable year
2. Employees, the income tax is not W C
3. Deriving OTHER non-business, non-professional- related income in addition
to compensation income, not otherwise subject to a F T.
4. Receiving CI from 1 but whose spouse falls to 1, 2, 3
5. NRA-ETB deriving PCI, or CI and other income.
B. Corporation, including P, no matter how C
Individuals not required to file
1. Individual earning PCI not exceeding P250k, however those engaged in
business or practice of profession w/in PH shall file ITR, regardless of
amount
2. Whose IT correctly withheld by only one employer for the taxable yr
3. Sole income is subject to FWT
4. MWE

Substituted filing of income tax returns

- Instead of ITR (BIR Form 1700), Certificate of W duly stamped “R” by BIR
Employees qualified to avail of substituted filing
1. PCI
2. One E
3. Tax WC by the employer
4. Spouse C with 1,2,3
5. Employer files the A I R (BIR Form no. 1604-CF)
6. Employer issues BIR Form No. 2316
Returns of husband and wife
-file IT for both but tax is computed S, if impractical, file separate then BIR
consolidates
-if cannot be definitely A or I, it must be equally D

Return of parent to include income of children

 -except when DT is paid or it is exempt from DT

Return of persons under disability

-
Corporation returns
- Shall be F by P, VP or OPO and
- shall be S by such officer and by the T or AT
- can be in CY or FY, and corporation cannot change without CIR’s A

Declarations of corporate income tax

- shall file in D a QSD on a C B
- filed not later than 60 days after the close of each first three quarters
What if the 1st quarter ends in March 31? When is the deadline?
- Result is
1. Pay
2. Carry over
3. Be Credited or Refunded

Time for filing

- Individual engaged on business or practice
1st quarter- on or before May 15
2nd quarter- on or before August 15
3rd quarter- on or before November 15
4th quarther – not later than 15th day of the 4th month following the close of year

Extension of time to file returns

- It may be extended in meritorious cases by the CIR

Where to file the return and pay the tax

- Filed with AB. RDO, CA of duly authorized T of the C or M where Taxpayer’s legal
residence or place of employment is located

Installment payment of tax

- If tax due is more than 2K, may effect 2 equal payments
1st is on date of filing, 2nd is on or before Oct 15

EFPS
e-Filing and e-Payment

Compliance requirements
Taxpayers required to register
a. Every person subject to IR tax shall register with appropriate RDO
b. Persons maintaining head office, branch or facility
 - Within 10 days from employment, commence of business or before payment of any
tax due as required by the NIRC.

Statements to accompany returns for income tax purposes

- C by CPA duly accredited by BIR
- AIF, FS
- SMR
- BIR Form no. 2304
- BIR Form no. 2307
- BIR Form no. 2316
- If applicable:
a. TDM
b. Proof of PYEC
c. Proof of FTC
d. For Amended return, Proof of previous payment
e. SAWT
f. Proof of OTP/C
g. AL

Language in which books of account and records

- Native language
- English
- Filipino

Keeping books of accounts and records

- If exceeding 3M, books of account shall be audited by CPA

Prescriptive period of books and other accounting records

- Preserve for 10 years from the day following the deadline of filing of return or the
date filed, if filing is after the deadline.

Issuance of receipts

Keeping of receipts/invoices
- Preserve for 3 years from the close of taxable year in which R or I are issued
- Same time with electronic receipts,

Printing or receipts
- ATP
- Serially numbered
- And show details provided by the NIRC

FILING OF ESTATE TAX RETURN

 1. Filing is required in; (a) all cases of transfers subject to estate tax; or, (b) regardless of
the gross value of the estate, where the said estate consists of registered or registrable
property;

2. If the gross value exceeds 5 MILLION Pesos, the return shall be supported with a
statement duly certified to by a CPA;

3. Filing shall be made within one year from the decedent's death;

4. The CIR may grant, in meritorious cases, a reasonable extension, not exceeding 30 days
for filing the return

PAYMENT OF ESTATE TAX

A. As a general rule, estate tax shall be paid at the time the return is filed by the executor,
administrator or the heirs;

B. Extension of time to pay estate tax: when the payment of the estate tax or of any part
thereof would impose undue hardship upon the estate or any of the heirs: (a) 5 years in case
the estate is judicially settled; (b) 2 years in case the estate is settled extra-judicially; CIR may
require the posting of bond in such amount, not exceeding double the amount of the tax and
with such sureties as the CIR deems necessary, conditioned upon the payment of the said tax;

C. Where the request for extension is by reason of negligence, intentional disregard of rules and
regulations , or fraud on the part of the taxpayer, no extension will be granted;

Payment by Installment

ØIn case the available cash of the estate is insufficient to pay the total estate tax due, payment
by installment shall be allowed within 2 years from the statutory date for its payment without
civil penalty and interest.

Filing should still be made within one year from decedent’s death

If the 2year period has lapsed without the payment of the entire tax due, the remaining balance
shall be due and demandable subject to the applicable penalties and interest reckoned from
the prescribed deadline for filing the return and payment of the estate tax.

Partial Disposition of Estate

1. Estate tax return shall be filed within one year from decedent’s death;
 2. File a written request for partial disposition with the BIR, together with a notarized
undertaking that the proceeds shall be exclusively

used for the payment of the total estate tax due;

3. The estate shall pay to the BIR the proportionate estate tax due of the

property intended to be disposed of.

4. In case of failure to pay the total estate tax due out from the proceeds of the
disposition, the estate tax due shall be due and demandable subject to the applicable
penalties and interest reckoned from the prescribed deadline for filing the return and
payment of the estate tax.

Liability for Payment of Estate Tax

Th e executor or administrator of an estate h as the primary obligation to pay the estate tax.

Where there are two or more executors or administrators, all of them are severally liable for
the payment of the tax.

The heir or beneficiary, however, has subsidiary liability for the payment of that portion of the
estate which his distributive share bears to the value of the total net estate. The extent of his
liability shall in no case exceed the value of his share in the inheritance.

Provisions Safeguarding the Interest of the Government in the Collection of Estate Taxes:

If a bank has knowledge of the death of a person, who maintained a bank deposit account
alone, or jointly with another, it shall allow any withdrawal from the said deposit account,
subject to a final withholding tax of 6%.

The amounts withdrawn from the deposit accounts of a decedent subjected to the 6%
withholding tax imposed under Section 97 of the NIRC shall be excluded from the gross estate
for purposes of computing the estate tax. ( RR 12-2018)

DONOR’s TAX

Filing of Return and Payment of Tax

The donor's tax return shall be filed within 30 days after the date the gift is made or completed
and the tax due thereon shall be paid at the same time that the return is filed.