#AskTheTaxWhiz: ITR filing deadline in April 2018 and more

Mon Abrea

This is AI generated summarization, which may have errors. For context, always refer to the full article.

#AskTheTaxWhiz: ITR filing deadline in April 2018 and more
The Philippine Tax Whiz answers taxpayers' key questions on the filing of annual income tax returns

Will the deadline for filing the annual income tax return (ITR) for taxable year 2017 be moved?

The deadline for ITR filing is every April 15 following the close of a taxable year. But since April 15, 2018 falls on a Sunday, the deadline will likely be moved to April 16. This is similar to what happened with the filing of ITRs for taxable year 2016, when the Bureau of Internal Revenue (BIR) released Revenue Memorandum Circular (RMC) No. 28-2017.

I am an overseas Filipino worker (OFW) and I have a small merchandising business in the Philippines. Am I still required to file an ITR?

Yes. A non-resident citizen who is receiving income from sources within the Philippines is still required to file an ITR. However, it should be noted that you are taxable only for the income you earned in the Philippines.

Furthermore, prior to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law – which only began on January 1, 2018 – the following taxpayers are also required to file an ITR:

A. You are a Filipino citizen living in the Philippines receiving income from sources within or outside the Philippines, and if:

  • You are employed by two or more employers, any time during the taxable year.

  • You are self-employed, either through conduct of trade or professional practice.

  • You are deriving mixed income. This means you have been an employee and a self-employed individual during the taxable year.

  • You derive other non-business, non-professional-related income, in addition to compensation income not otherwise subject to a final tax.

  • You are married, employed by a single employer, and your income has been correctly withheld – the tax due is equal to the tax withheld – but your spouse is not entitled to substituted filing.

  • You are a Marginal Income Earner (MIE).

  • Your income tax during the past calendar year was not withheld correctly – if the tax due is not equal to the tax withheld.

B. You are not a Filipino citizen but you receive income from sources within the Philippines, regardless of your residency. You are taxable only for the income you earn in the Philippines.

C. Domestic corporations (including partnerships) receiving income from sources within and outside the Philippines

D. Foreign corporations (including partnerships) receiving income from sources within the Philippines

E. Estates and trusts engaged in trade or business

Are all income earners required to file an ITR?

No. The following income earners are not required to file, based on the pre-TRAIN conditions:

  • You are a minimum wage earner.

  • Your gross income (total earned for the past year) does not exceed your total personal and additional exemptions.

  • Your income derived from a single employer does not exceed P60,000 and the income tax has been correctly withheld. Your income has been subjected to final withholding tax.

  • You are qualified for substituted filing. Requirements:

    • You are employed by a single employer during the taxable year.

    • You earn purely compensation income from that single employer.

    • Your tax due at the year’s end equals the tax withheld by the employer.

    • If you are married, your spouse also complies with the above conditions.

    • Your employer files the annual information return (BIR Form No. 1604-CF).

    • Your employer issues BIR Form No. 2316 to every employee.

Furthermore, you are exempt from filing if:

  • You are a non-resident citizen who is:

    • A Filipino citizen not residing in the Philippines but who has established with the BIR that you wish to remain living outside the country.

    • A Filipino citizen who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for permanent employment.

    • A Filipino citizen who works and earns income abroad.

    • A Filipino citizen previously considered a non-resident citizen.

  • You are an overseas Filipino worker whose income is derived solely from sources outside the Philippines.

  • You are a Filipino citizen who is working as an overseas seaman, provided that your vessel must be engaged exclusively in international trade. 

The deadline for ITR filing is fast approaching and I am still confused when it comes to preparing the necessary documents. They even say that there’s a higher risk of being assessed by the BIR when the ITR is not filed properly. Do you have any advice on the things I need to remember before I file?

Before filing, gather all your previously filed tax returns – whether income tax, value-added tax (VAT), or withholding taxes – to reconcile the balances reflected in your annual financial statements.

Make sure to do an annual compliance review of all tax payments vis-à-vis the BIR threshold and required documentation to prepare for an annual audit via a letter of authority (LOA) which may be issued immediately after the ITR filing deadline.

Also, the proposed general tax amnesty bill is already in Congress. If it gets passed into law this year, the basis will more likely be your net worth as of December 31, 2017. Make sure it’s correct, properly substantiated, and reconciled, consistent with your previously filed annual financial statements and tax returns.


I am willing to pay the right income taxes but I am so confused about how to do it. Are there any references which I can use?

The Center for Strategic Reforms of the Philippines (CSR Philippines), in partnership with the BIR and the Department of Trade and Industry (DTI), published the Tax Guide for Small Businesses, a handbook that serves as a quick guide for preparing various types of tax returns. To get a free copy, call (02) 372-5727 and visit us at our office located at Unit 701, FSS Building II, 18 Scout Tuazon corner Scout Castor streets, Quezon City.

Furthermore, in partnership with the Tax Whiz Academy of the Asian Consulting Group (ACG), CSR Philippines opened its annual ITR Helpdesk last Monday, April 2. This is a program aiming to assist confused taxpayers – free of charge – in filing their ITRs. Just contact (02) 622-7720 or email us at You may also follow @consult_acg on Twitter and send us your questions with the hashtags #AskTheTaxWhiz and #ITRHelpdesk2018. –

Mon Abrea, popularly known as the Philippine Tax Whiz, is one of the 2017 Outstanding Persons of the World, a Move Awards 2016 Digital Mover, one of the 2015 The Outstanding Young Men of the Philippines (TOYM), an Asia CEO Young Leader of the Year, and founding president of the Asian Consulting Group (ACG) and Center for Strategic Reforms of the Philippines (CSR Philippines). Assisting him in his column is Allen Gautier, director of the Tax Whiz Academy, a platform for learning and sharing of expertise to the taxpaying public through its strategic tax management programs, certification courses, publications, and seminars.

Follow Mon on Twitter or Facebook. You may also email him at

Add a comment

Sort by

There are no comments yet. Add your comment to start the conversation.

Summarize this article with AI