BIR: 2014 disclosure of passive income optional

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Taxpayers do not need to disclose their passive income when filing their income tax returns this April

INCOME TAX RETURNS. The BIR announced that disclosure of passive income was optional for 2014's income tax return. AFP PHOTO

MANILA, Philippines – The Bureau of Internal Revenue (BIR) announced Tuesday, February 11 that disclosures of passive income for calendar year 2013 would be deferred. Taxpayers do not need to disclose their passive income when filing their income tax returns (ITRs) this April.

Revenue Memorandum Circular 9-2014 notes this amendment to BIR forms 1700, 1701, and 1702.

It reads further, “The amendment consists mainly in making the disclosure of Supplemental Information under BIR Forms No. 1700 and 1701 optional on the part of the taxpayer for income tax filing covering and starting with calendar year 2013, due for filing on or before April 15, 2014.”

Passive income refers to regularly-received income with minimal effort required to maintain that income. This includes rent from a property, royalties from licensed intellectual property, and dividends and interest from owning securities.

The BIR noted in RMC 9-2014 that taxpayers have to disclose their passive income in their ITRs due on April 15, 2015.

The BIR also reminded taxpayers to properly “receipt and book their tax-exempt income.” – Rappler.com

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