#AskTheTaxWhiz: Income tax return filing for corporations
I own a corporation subject to regular corporate income tax. Since there were no changes to the corporate tax rates under the Tax Reform for Inclusion and Acceleration (TRAIN) law, does this mean there's no new form for corporations?
Even if there are no changes to the tax rates, there are still new forms for corporations. Remember, the TRAIN law also mandated that tax returns should be no longer than 4 pages.
Under BIR Revenue Memorandum Circular No. 19-2019, the revenue collection agency issued BIR Form No. 1702-RT and 1702-EX.
For corporations subject to regular corporate income tax, they should use BIR Form No. 1702-RT, while tax-exempt corporations should use BIR Form No. 1702-EX. These forms are significantly shorter than their previous versions.
1702-RT was cut to 4 pages from 8, and 1702-EX cut to 3 pages from 7.
Are corporations required to file annual income tax returns (ITRs) this April 15?
Only corporations with fiscal years ending December 31 have to file their annual ITRs every April 15. Corporations have the option of following a fiscal year different from the calendar year. This fiscal year is the basis for the deadline of the corporation's tax return deadlines.
To be specific, the deadline for filing the annual ITR of corporations is the 15th day of the 4th month following the close of the fiscal year. For instance, if a corporation sets its fiscal year to end every August 31, its deadline for filing an ITR is every December 15.
The same goes for quarterly returns which are to be filed within 60 days from the close of the first 3 quarters of the taxable year (whether fiscal or calendar year).
However, keep in mind that individuals – even if they run a business as sole proprietors – do not have this option. For self-employed and professionals, the deadline for filing the annual ITR is on April 15.
If you have questions about ITR filing, you can simply visit CSR Philippines' Facebook page and ask away at our pinned post. Don't forget to use the hashtag #April15Challenge and let your friends know in case they have questions as well.
For other concerns or inquiries, you can contact us at firstname.lastname@example.org or via (02) 622-7720. – Rappler.com
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) as well as the Center for Strategic Reforms of the Philippines (CSR Philippines). Assisting him in his column is JM Miñano, communications associate of ACG. He graduated with a bachelor's degree in Communication Arts from the University of the Philippines Los Baños.