As the Philippines has approached no endo contract for working employees, the next phase is the calculating and filing for your income tax return or ITR. For most people that are employed for quite some time now, they have known how paying income tax return works. But for some people that are just new to the professional world, the idea of the ITR is unfamiliar to them. So, what is an ITR basically?

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What is an ITR?

Income Tax Return or most commonly known as the ITR is the tax on the person’s income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws. This is usually filed by either an individual or a company who receives a regular income on an annual basis in the Philippines.

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Who are required to file an ITR?

The effectivity of an ITR is based if a person has a job and is receiving an income from any sources – a company, business, corporation, or freelance jobs, then you are eligible and required to participate in the ITR process.

Who files the ITR to the bureau of internal revenue?

If you are living and employed in a company or a corporation in the Philippines, your employer is usually the ones that file your annual ITR. However, if you have your own business, company, or corporation, or if you are a freelancer, you are the one that will organize and file your ITR in the BIR. Make sure that you file your ITR in the BIR office before their given deadline to avoid long and annoying cues.

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What are the things I need to file an ITR and how do I file it?

Since we are living in a technology savvy world, you can easily download and print out the forms you will be needing in the process of filing your ITR in the BIR’s official site. But remember that there are different forms to each kind of ITR; there are forms that caters individual earners and self-employed individuals, and there are forms that accommodates the ones to companies and corporations in the Philippines.

You can always visit the Bureau of Internal Revenue’s official site to know more about the appropriate form to use. Additionally, remember that after you fill up the right forms, you will need certain documents such as Certificate of Income Payments, Certificate of Creditable Tax Withheld at Source, Approved Tax Memo, Proof of Foreign Tax Credits, Income Tax Return, BIR Form 1702, and Proof of prior year’s excess tax credits.

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It is normal if you are having a hard time while filing and completing your ITR, most especially if it is your first time doing it. You can always ask the assistance of our officers in the BIR, accountant friends, or human resource personnel, to help and guide you while you file up your ITR.

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Now that you have enough knowledge in filing and doing your ITR, the next step is to continuously monitor your annual tax. It is best to always be updated in your ITR so that you will not have a hard time in computing and dealing with it in the future. It will help you to be organized, monitored, and updated in the process. Happy taxing!

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