1700 BIR Form: Definition and Step-by-Step Guide

Do you need help with the BIR Form 1700, a filing requirement for certain kinds of businesses? Have you wondered what it is and how to complete it correctly? Worry no more, as this blog post will provide an easy-to-understand definition and a step-by-step guide on properly completing the form! This post is designed to help remove any stress or confusion associated with filing this form by breaking the process into manageable chunks. Read on to find out precisely what the BIR Form 1700 is, its importance for running your business smoothly, and tips and guidelines to help make things easier. Following the instructions today, you’ll be well on your way toward correctly submitting your completed document in no time!

What is The BIR Form 1700, and What Is It Used For?

Form 1700, or the BIR Form 1700, is an income tax return form used in the Philippines. It must be filed by self-employed individuals and professionals, such as doctors, lawyers, architects, and engineers. The purpose of filing this form is to accurately report the taxpayer’s taxable income for a given year to the Bureau of Internal Revenue (BIR).

The BIR Form 1700 requires taxpayers to declare sources of income under specific categories:

• Compensation income
• Business/professional income
• Other non-operating income
• Capital gains from the sale of shares/real property
• Passive investments

A taxpayer with foreign-sourced income must also provide details and any international taxes paid. In addition to this information, taxpayers must include their total deductions for the year (e.g., special allowance, donations) as well as their total taxable base—which comprises all taxable incomes less any allowable deductions made from them can then be applied against an applicable tax table published by BIR each year to determine how much taxes are due from them for that particular period. Taxpayers also need to indicate whether they are entitled to reliefs or refunds on top of paying their due taxes.

Related: 1701Q BIR Form: Your Comprehensive Filing Guide

Who Needs to File a 1700 BIR Form?

Under any of the following circumstances, certain employees are required to file BIR Form 1700 on their own:

• The employee receives compensation income from two or more employers (whether simultaneously or consecutively) within the taxable year.
• Income tax has been withheld incorrectly, resulting in either a tax refund or liability, regardless of whether the employee worked for one or multiple employers within the taxable year.
• The employee earned passive income (from employment income) that wasn’t subject to final withholding tax.
• The employee’s spouse is ineligible for substituted filing, even if the employee has one employer and their income tax has been correctly withheld.
• Non-resident foreign employees sent by a foreign corporation to work for its regional office in the Philippines.

The following individuals are exempted from filling up the form:

1. An individual whose taxable income does not exceed P 250,000.00.
2. An individual with pure compensation income as defined in Section 32(A)(1) derived solely from sources within the Philippines, and the correct tax has been withheld (tax due equals tax withheld) under Section 79 of the Code. However, an individual who receives compensation concurrently from two or more employers during the taxable year must file an income tax return.
3. An individual whose sole income is subject to final withholding tax under Section 57(A) of the Tax Code.
4. A minimum wage earner as defined in Section 22(HH) of the Tax Code or an individual exempt from income tax under the provisions of the Tax Code and other laws, general or particular.

When is the BIR Form 1700 Deadline?

The deadline for filing the BIR Form 1700 (Annual Income Tax Return) is April 15 of every year. It is important to note that this deadline applies to individuals and corporations. 

All you need to do for individuals is ensure your tax return form is filed and submitted before April 15. However, if you can’t meet this deadline for specific reasons, you may apply for an extension by submitting BIR Form 1901 (Application for Extension of Time To File Income Tax Return). This will extend the due date for filing until October 15, the same year your taxes are due. 

Individuals must take this deadline seriously, as failure to submit the BIR Form 1700 will result in penalties and possible incarceration depending on the severity of non-payment or late payment. It is always best to ensure you comply with all deadlines set by government agencies, including those issued by the BIR, to avoid any legal implications now and in the future.

Step-by-Step Guide for Filing the 1700 BIR Form

To file, you must first collect all your signed BIR Form 2316s from every employer you worked for during that taxable year. If you still need them, you should request them from your employers since they are required by law to provide them. You’ll need to attach this form when filing.

If instead of Form 2316, your employer gave you Form 2307, it’s advisable to review your contract because it’s likely that you were employed as an individual contractor.

There are three ways to file your BIR form 1700

Manual Filing of BIR form 1700

Manual filing is an alternative tax-filing method that involves personally submitting your accomplished ITR when eFPS and eBIRForms are down or unavailable. Additionally, taxpayers must file it manually if a specific ITR’s latest version is unavailable in the eFPS and eBIRForms facilities.

How to File and Pay BIR form 1700 Manually:

1. Download the appropriate ITR PDF file from the BIR website (see previous section).
2. Print three copies of the ITR.
3. Fill out the appropriate fields, including TIN.
4. Visit the nearest authorized agent bank (AAB) under your Revenue District Office (RDO) jurisdiction. If there’s no AAB in your area, visit the Revenue Collection Officer or authorized city/municipal treasurer in your RDO.
5. Submit your accomplished ITR along with the required documents.
6. Pay your tax due.
7. Receive a copy of the stamped and validated ITR and deposit slip from the teller (or Electronic Revenue Official Receipt or eROR if you paid tax in the RDO).

Electronic Filing and Payment System (eFPS)

The BIR eFPS is an online platform that allows certain taxpayers (excluding freelancers and small business owners) to file and pay taxes. It eliminates the hassle of manual filing and reduces the risk of human error by validating all taxpayer data before transmitting it to the BIR.

Steps in Enrolling in eFPS:

1. Visit the eFPS website.
2. Click “Enroll to eFPS.”
3. Fill out the enrollment form with your taxpayer and bank account details, then verify your data.
4. Click “Submit” and wait for a confirmation pop-up notification.
5. Wait for an email confirmation from BIR within 3 to 10 working days.
6. If approved, follow the instructions from BIR to activate your account in eFPS.

Steps for filing and paying BIR Form 1700 using eFPS:

1. Fill out the appropriate ITR for your taxpayer type.
2. Click “Proceed to Payment.”
3. Choose a payment mode (Fund Transfer, Tax Debit Memo, or Tax Remittance Advice).
4. Complete the required fields in the eFPS payment form and click “Submit.”
5. You’ll be redirected to your registered bank’s online banking site to pay your income tax online.
6. Check your email for confirmation of the successful e-filing and e-payment transaction from the bank.

Electronic BIR Forms (eBIRForms)

eBIRForms is a tax preparation software that can be downloaded on your computer. It allows taxpayers not eligible to use the eFPS to file their tax returns offline or online.

Here’s a step-by-step guide on how to use eBIRForms:

1. Go to the BIR website homepage or the eBIRForms page.
2. Download the offline package in ZIP format by clicking on the eBIRForms icon.
3. Extract the files from the downloaded folder on your computer.
4. Right-click on “Offline eBIRForms Package.setup.exe” and select “Run as administrator” to install the software.
5. Open the “BIRForms” program on your PC and create your user profile by filling out the required information.
6. Choose the correct ITR for your taxpayer type from the list of BIR forms and click “Fill-up.”
7. Fill out all applicable fields on the ITR, then click “Validate.” If there are any blank fields or incorrect information, you’ll be prompted to make corrections until successful validation.
8. Save a copy of your completed ITR to your computer or flash drive by clicking “Final Copy.”
9. Check your email for confirmation status from BIR and print it along with three copies of your accomplished ITR.
10. Go to an authorized agent bank (AAB) within your jurisdiction or visit a Revenue Collection Officer/authorized city/municipal treasurer if there’s no AAB in your area.
11. Submit your accomplished ITR plus other requirements and pay the tax due.
12. Receive stamped and validated ITR copy and deposit slip (or Electronic Revenue Official Receipt/eROR if paid at RDO).

Related: Find Your Bayad Center Near Me in the Philippines

Common Mistakes to Avoid when Filing the 1700 BIR Form

Double-checking the information before submission: This is arguably one of the biggest mistakes you can make – not double-checking your information beforehand will likely result in delays or rejections from BIR officials. Ensure that every field on your 1700 BIR Form is accurate and current before submitting it to avoid any possible issues. 

Not providing evidence for deductions claimed: If you claim any deductions on your 1700 BIR Form, make sure you provide supporting paperwork such as invoices and receipts along with them so that they may be authenticated without delay by officers at BIR headquarters. With proper documentation, these deductions can be accepted! 

Neglecting Documentation– It’s always a good practice when filing taxes (including the 1700 BIR Form) should keep backups of their documents either physically or electronically so they can refer back should there ever be a dispute over their taxes at a later date (or even just for their records). Keeping copies of all records makes it easier for taxpayers if they are ever audited or need additional documentation after filing their returns. 

 Ignoring Tax Law Changes: Governments often change tax laws yearly, so if a taxpayer does not pay attention, then they might end up dealing with amended forms which would complicate matters further down the line since these forms require inputting more detailed and updated versions rather than simply filling out blank locations like previously mentioned ones do. Taxpayers must take time to update themselves annually about changes made by governments related specifically (and generally) to taxation rules; otherwise, this might result in more considerable complications for them during audits.

Conclusion

Completing your BIR Form 1700 thoroughly helps keep your business in good standing with the Bureau of Internal Revenue. Once you understand what it is and how to fill it out correctly, you’ll thank yourself for researching and planning for future due dates. Before filling out these documents, it’s wise to familiarize yourself with any related rules or regulations. Studying minor details can help you avoid headaches should any unexpected delays arise while submitting. Finally, don’t be afraid to seek guidance from experienced professionals like Certified Public Accountants if in doubt—with their help, you can confidently file the BIR Form 1700 every year without a hitch!

Recommended: Definition and Step-by-Step Guide for Filing the 2307 BIR Form