How To File Taxes In The Philippines

June 29, 2021

How To File Taxes In The Philippines

How can you file taxes in the Philippines?

  1. Choose your filing method
    • Manual
    • eFPS
    • eBIRForms

Knowing how to file taxes in the Philippines can be challenging for beginners and even for those who have been doing it for years. Every year, individuals and enterprises in the Philippines pay their taxes on or before April 15. For freelancers and entrepreneurs in the Philippines, this means filing an income tax return (ITR) and paying all the tax fees involved.

If you want to learn more about how to file taxes in the Philippines, this guide lists down the necessary forms, tax returns, and filing methods to help you get started. Read on!

Choose Your Filing Method

Choose Your Filing Method

Filing an income tax return today is now made easier as it can either be filed manually or electronically. Currently, there are three methods you can follow in order to successfully file your tax returns in the Philippines.

Manual filing requires taxpayers to visit the nearest BIR Revenue District Office (RDO). Electronic filing, on the other hand, enables them to use the Electronic Filing and Payment System (eFPS) or Electronic BIR Forms (eBIRForms).

Manual Filing

Unlike the two other methods of preparing and filing taxes in the Philippines, manual filing involves going to the nearest BIR RDO (BIR Revenue District Office) where you’re currently registered to file taxes. The process for manual tax filing are as follows:

  • Download, fill out, and print 3 copies of the accomplished BIR Form No. 1700.
  • If required to pay taxes, go to the accredited bank of the RDO where you are registered.
  • Present the accomplished BIR form and the required documents (Certificate of Income Tax Withheld on Compensation (BIR Form 2316), Taxation of Foreign-Source Income (if applicable), Duly Approved Tax Debit Memo (if applicable), Proof of Tax Payment (if filing a return for the same year), Previously Filed Income Tax Return.
  • Get your copy of the duly stamped and validated BIR form as proof of filing.

Electronic Filing and Payment System (eFPS)

Developed by the BIR, the eFPS is a paperless system for filing an income tax return and paying taxes through the internet. It’s a quick, convenient, and secure way to file and pay your taxes.

The steps for filing through the eFPS are as follows:

  • Access the official eFPS website and sign up by clicking the “Login” page and then clicking “Enroll to eFPS”.
  • Fill out the enrollment form accordingly and submit it.
  • Wait for an email from the BIR after 3 to 10 days that states the approval or rejection of your enrollment.
  • Upon your account activation, you can start filing and paying your taxes electronically.
  • Log in to your account, fill out the required fields in the BIR Form No. 1700, and submit your info.
  • Conduct an electronic payment by clicking “Proceed to Payment”. Afterwhich, fill out the required fields in the “eFPS Payment Form”. Click submit.
  • After this, you will receive a filing reference number (FRN). This is proof of your successful filing transaction and is located on the top right corner of your ITR.

Electronic BIR Forms (eBIRForms)

Electronic BIR Forms (eBIRForms)

Electronic BIR Forms (eBIRForms) are an alternative method that makes filing taxes easier, more convenient, and more accurate. eBIRForms consists of an offline and online package. The most commonly used package is the offline package which can be downloaded and installed on your computer. Non-eFPS filers may use this method. The government mandates certain taxpayers such as accredited tax agents (ATA) and their clients to use the eBIRForms.

The steps for filing through the eBIRForms are as follows:

  • Visit the eBIRForms page and click “eServices”.
  • Download the latest version of the eBIRForm Offline package, install the package, and access it.
  • Choose the required tax return. Enter the required information and validate it.
  • Click the “Final Copy” button to save a copy of the final tax return.
  • Submit your ITR through the online eBIRForm system.
  • Enter your username and password.
  • Afterward, you will see your FRN that confirms receipt of the ITR.
  • To find out if your tax return submission was successful, check your email for a confirmation message.
  • Pay the correct amount of taxes that you owe by visiting the nearest AAB of your RDO.

Key Takeaway

Paying taxes is your responsibility, whether you own a business, you’re employed, or working as a freelancer. It is the law and your duty to file your income tax returns. This is why we’ve curated a simple guide on how to file taxes in the Philippines. Filing taxes doesn’t have to be challenging if you carefully follow these steps.

As one of the prolific entrepreneurs in the Philippines, Benito Keh can assure you that organizing taxes is a crucial part of managing a business. For freelancers, small business owners, and self-employed professionals in the Philippines, Benito Keh can provide you with more business guides, including tax tips. For more information, click here.