[Ask The Tax Whiz] How to file annual income tax returns for 2023

What are the latest guidelines in filing the annual income tax return for calendar year 2023?

The Bureau of Internal Revenue laid down new guidelines last April 8, 2024 for eFPS and eBIR Filers of the annual income tax return (AITR).

For eFPS users/filers: Taxpayers mandated to use the eFPS shall file their AITR electronically and pay the taxes due thereon through the eFPS-Authorized Agent Banks where they are enrolled.

Income tax returns for compensation income earners, self-employed and professionals, mixed income earners, and corporations are now available via eFPS. However, the income tax return for corporations subject to multiple income tax rates or subject to special/preferential rates (1702-MX) is not yet available in the eFPS package.

Those who need to file BIR Form 1702-MX shall file through the Offline eBIRForms Package v.7.9.4.2 and pay taxes due, if any. 

Taxpayers mandated to use the eFPS shall use the eBIRForms facility in filing their AITRs in case of filing cannot be made through the eFPS due to the following reasons:

1. Enrollment in BIR-eFPS and eFPS-AAB is still on process
2. The enhanced form is not yet available in the eFPS
3. Unavailability of BIR-eFPS covered by an Advisory published in the BIR Website
4. Unavailability of eFPS-AAB system covered by an Advisory released/published by the AAB

For eBIR users/filers: Non-eFPS taxpayers shall use the eBIRForms in filing their AITRs electronically through the Offline eBIRForms Package v.7.9.4.2. Taxpayers need to ensure that they are using the latest version available in eBIRForms. To confirm whether or not they are using the latest forms, the BIR has provided a list in RMC 51-2024.

Taxpayers who already filed their AITR through eBIRForms shall no longer be required to refile the return in the eFPS.

How can I pay my taxes due?

Tax payments can be made manually or electronically. To pay your taxes manually, you can pay through any authorized agent banks. In places where there are no AABs, the tax due shall be paid with the revenue collection officer (RCO) under any RDO. 

To pay your taxes electronically, you can do so through: 

1. Landbank of the Philippines (LBP) Link.BizPortal
2. Development Bank of the Philippines (DBP) PayTax Online
3. Unionbank of the Philippines (UBP) Online/ The Portal Payment Facilities
4. Tax Software Provider (TSP)- Maya or MYEG

Taxpayers who shall file their tax due online using the ePayment Gateways must file the corresponding AITR online through the Offline eBIRForms.

Are there any exceptions to the above guidelines?

According to the RMC 51-2024, only qualified taxpayers may manually file their “No Payment AITRs” with the RDO in three copies using electronic or computer-generated returns or photocopied returns in its original format and in legal size bond paper. 

These taxpayers are:

1. Senior citizens (SC) or persons with disabilities (PWDs) filing for their own returns
2. Employees deriving purely compensation income from two or more employers, or not qualified for substituted filing
3. Employees who opted to file their own ITR for the purpose of promotion, loans, scholarships, foreign travel requirements, etc. 

What are the required attachments to the annual income tax returns?

The required attachments to the AITR are as follows:

1. Filing Reference Number (FRN) as proof of eFiling in eFPS
2. Tax Return Receipt Confirmation as proof of eFiling in eBIRForms
3. Proof of Payment/Acknowledgement Receipts of Payment
4. Certificate of Independent CPA duly accredited by the BIR
5. Unaudited or Audited Financial Stataments (AFS)
6. Notes to AFS
7. Statement of Management Responsibilities (SMR)
8. BIR Form No. 2307-Certificate of Creditable Tax Withheld at Source
9. BIR Form No. 2304-Certificate of Income Payments not Subjected to WIthholding Tax
10. BIR Form No. 2316-Certificate of Compensation Payment/Tax Withheld
11. System generated Acknowledgement Receipt or Validation Report of electronically submitted Summary Alphalist of Withholding Taxes (SAWT) thru esubmission@bir.gov.ph
12. Duly approved Tax Debit Memo
13. Proof of Foreign Tax Credits
14. Proof of Prior Year’s Excess Credits
15. Proof of Other Tax Credits/Payments
16. BIR Form No. 1709- Information Return on Transactions with Related Party

Only those applicable attachments mentioned above shall be submitted by the concerned taxpayers, to wit:

Until when can I pay my tax returns with the Authorized Agent Banks (AABs)?

Pursuant to an agreement between AABs, BIR, and the Bureau of Treasury, all AABs will be open two Saturdays (April 6, 2024 and April 13, 2024) prior to the April 15 annual income tax deadline, and are advised to extend banking hours up to 5 pm for the period April 1 to 15, 2024.

Stay informed about important updates regarding the AITR filing. Know your tax obligations and compliance. Consult ACG! – Rappler.com