[Ask the Tax Whiz] Filing your 2025 annual income tax return: A practical guide for Filipino taxpayers

The Philippine Tax Whiz provides essential guidance for taxpayers navigating their Annual Income Tax Return (AITR) filing for Calendar Year 2025, ensuring compliance with the latest rules under Revenue Memorandum Circular No. 20-2026.

As the April 15, 2026 deadline approaches, taxpayers — whether individuals, professionals, or corporations — must ensure timely and accurate filing of their AITRs. With the implementation of the Ease of Paying Taxes (EOPT) Act, the Bureau of Internal Revenue (BIR) continues to streamline compliance through digital platforms, minimizing manual processes and improving taxpayer convenience.

Understanding the proper procedures, available platforms, and compliance requirements is key to avoiding penalties and ensuring a smooth filing experience.

1. How should taxpayers file their Annual Income Tax Returns?

Taxpayers are required to file their AITRs electronically using the BIR’s official platforms:

• Electronic Filing and Payment System (eFPS) – for mandated or enrolled taxpayers
• Offline eBIRForms Package – for non-eFPS users, including “no payment” returns
• Tax Software Providers (TSPs) certified by BIR – for specific filings

Manual filing is generally not allowed, except in limited cases such as system unavailability or when the form is not yet available electronically.

What taxpayers should remember: Electronic filing is now the standard. Always secure proof of filing such as the Filing Reference Number (FRN) or Tax Return Receipt Confirmation (TRRC).

2. What are the available options for paying taxes due?

Tax payments must also be made electronically through any of the following:

• eFPS-linked Authorized Agent Banks (AABs)
• ePayment gateways, including:
  • LandBank Link.Biz Portal
  • UnionBank Online/UPAY
  • DBP PayTax
  • Mobile wallets (e.g., Maya, GCash via partners)

Manual over-the-counter payment is allowed only in specific situations, such as system downtime or ongoing enrollment in eFPS.

3. What if I need assistance in filing my tax return?

The BIR eLounge facilities are available in Revenue District Offices (RDOs) to assist taxpayers in electronic filing and payment.

Priority is given to:

• Senior citizens and persons with disabilities
• Employees with multiple employers or special filing needs
• Taxpayers without internet access

However, usage is limited to three transactions and not exceeding one hour per day for practitioners and multiple filers.

4. Which AITR form should individual taxpayers use?

Individual taxpayers, especially micro and small business taxpayers, may use the following forms:

• BIR Form 1701-MS – for micro and small taxpayers (manual only)
• BIR Form 1701 or 1701A – available via eFPS or eBIRForms

Notably:

• Micro and small taxpayers may choose any applicable form, regardless of what is stated in their Certificate of Registration (COR).
• The 1701-MS is not yet available electronically, but taxpayers may opt to use 1701 or 1701A instead for convenience.

5. What attachments are required and how should they be submitted?

The required attachments to the AITR are as follows:

• FRN as proof of eFiling in eFPS
• TRRC as proof of eFiling in eBIRForms
• Proof of Payment/Acknowledgement Receipt of Payment
• Certificate of Independent CPA duly accredited by the BIR
• Unaudited or Audited Financial Statements (AFS)
• Notes to AFS
• Statement of Management Responsibilities (SMR)
• BIR Form No. 2307 – Certificate of Creditable Tax Withheld at Source
• BIR Form No. 1606 Withholding Tax Remittance Return for Onerous Transfer of Real Property Other Than Capital Asset (Including Taxable and Exempt)
• BIR Form No. 2304 Certificate of Income Payments not Subjected to Withholding Tax
• BIR Form No. 2316 – Certificate of Compensation Payment/Tax Withheld
• System generated Acknowledgement Receipt or Validation Report of electronically submitted Summary Alphalist of Withholding Taxes (SAWT) thru [e-mail]
• Duly approved Tax Debit Memo
• Proof of Foreign Tax Credits
• Proof of Prior Year’s Excess Credits
• Proof of Other Tax Credits/Payments
• BIR Form No. 1709 – Information Return on Transactions with Related Party

These attachments must be submitted electronically via the eAFS (Electronic Audited Financial Statements) system, not manually as shown below.

6. Are there penalties taxpayers should be aware of?

While penalties still apply for late filing or payment, the BIR provides relief for certain cases:

• No penalty for wrong venue filing
• No penalty for micro and small taxpayers who:
  • Filed using Forms 1701 or 1701A electronically, or
  • Filed manually using Form 1701-MS

What taxpayers should remember: Compliance is encouraged through flexibility — but deadlines must still be respected.

Final thoughts: Compliance made easier, but still your responsibility

The shift toward digital tax compliance reflects the government’s push for a more efficient and transparent tax system under the EOPT Act. While these reforms make filing easier, taxpayers must remain proactive — ensuring accurate reporting, proper documentation, and timely submission.

Ultimately, successful tax compliance is not just about avoiding penalties — it is about contributing to nation-building while maintaining financial discipline. – Rappler.com

Mon Abrea is a Global Tax Policy Expert and Chief Tax Advisor of the Asian Consulting Group (ACG), the Philippines’ premier tax advisory and investment consulting firm — providing strategic tax, energy, and policy advisory services to governments, multinationals, and investors.

For guidance on Annual Income Tax compliance and BIR regulations, CONSULT ACG or email [e-mail] for seminars and briefings across Asia, the Middle East, Oceania, Europe, and North America.

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