(To be filled up by the BIR)
DLN:
BCS No.
PSIC:
Annual Income
Tax Return
Republika ng Pilipinas
Kagawaran ng Pananalapi
Kawanihan ng Rentas Internas
For Corporations, Partnerships and other Non-Individual Taxpayers
BIR Form No.
1702
September 2005 (ENCS)
Fill in all applicable spaces. Mark all appropriate boxes with an X.
For the
Calendar
Fiscal
3 Amended
4 Short
5 No. of
Yes
Yes
Year Ended
Return?
Period
sheets
attached
( MM / YYYY )
No
No
Return?
Part I
Background Information
9 Line of Business/
8 RDO Code
7 TIN
Occupation
10 Taxpayer's Name
1
2
ATC
11 Registered Address
12 Zip Code
13 Are you availing of tax relief under Special Law/
International Tax Treaty?
Yes
13A
14 Date of Incorporation/Creation 14A
(MM/DD/YYYY)
Part II
13B
If yes, specify
Date of Registration with BIR 14B
(MM/DD/YYYY)
Computation of Tax
EXEMPT
Special Rate
15
No
15
15 Sales/Revenues/Receipts/Fees (Sch.1)
16
Less: Cost of Sales/Services (Sch.2/3)
17 Gross Income from Operation
TAXABLE
Regular Rate
15
16
16
16
17
17
17
18
Add: Non-Operating & Taxable Other Income(Schedule 4)
19
A
19 Total Gross Income
20
A
20
Less: Deductions (Section D)
18
18
19
19
20
20
21
21 Taxable IncomeA
21
B
22A
22 Tax Rate (except MCIT Rate)..
23A
23 Income Tax .. . ..
24A
24
Less: Share of Other Agencies (RA 7916/8748, etc)
22B
23
B
25 Minimum Corporate Income Tax (MCIT)(Section B)
25
26 Tax Due
26A
26A Tax on transactions under Regular Rate (Normal Income Tax or Minimum Corporate Income Tax whichever is higher)..
26B
26B Less: Unexpired Excess of Prior Year's MCIT over Normal Income Tax Rate
(deductible only if the current year's tax due is the normal rate)(Section C)..
26C
26C Balance (Item 26A less Item 26B)..
26D
26D Add: Tax Due to the BIR on transactions under Special Rate (23A less 24A).
27
27 Aggregate Income Tax Due (Sum of Items 26C and 26D).
28
Less: Tax Credits/Payments
28A
28A Prior Year's Excess Credits other than MCIT ....................................................................
28B
28B Tax Payments for the First Three Quarters..
28C
28C Creditable Tax Withheld for the First Three Quarters ..
28D
28D Creditable Tax Withheld Per BIR Form No. 2307 for the Fourth Quarter .
28E
28E Foreign Tax Credits, if applicable................................................
28F
28F Tax Paid in Return Previously Filed, if this is an Amended Return.............
28G
28G Total Tax Credits/Payments (Sum of Items 28A to 28F)
29
29 Tax Payable/(Overpayment)(Item 27 less Item 28G)......................................
30
Add: Penalties
Surcharge
30A
Interest
Compromise
30B
30C
30D
31 Total Amount Payable/(Overpayment) (Sum of Items 29 & 30D)........................................ 31
If overpayment, mark one box only: (once the choice is made, the same is irrevocable)
To be refunded
To be issued a Tax Credit Certificate
To be carried over as tax credit next year/quarter
Part III
D e t a i l s of P a y m e n t
Drawee Bank/
Date
Particulars
Agency
Number
MM DD
YYYY
Amount
32B
32C
32D
32 Cash/Bank 32A
Debit Memo.
33A
33B
33C
33D
33 Check
34A
34 Tax Debit
Memo
35A
35B
35 Others
34B
34C
35C
35D
Machine Validation/Revenue Official Receipt Details (If not filed with the bank)
Stamp of Receiving
Office/AAB and
Date of Receipt
(RO's Signature/
Bank Teller's Initial)
BIR FORM 1702 (ENCS) - PAGE 2
Gross Income
(Attach additional sheet, if necessary)
Schedule of Sales/Revenues/Receipts/Fees
Special Rate
Regular Rate
Taxable Amount
Creditable Tax Withheld
Creditable Tax Withheld
Taxable Amount
Section A
Schedule 1
36
Sale of Goods/Properties
37
Sale of Services
38
Lease of Properties
39
Total
40
41
Less: Sales Returns/Discounts
Net Sales/Revenues/Receipts/Fees (to Item 15)
Schedule 2
Schedule of Cost of Sales (Trading / Manufacturing)
Amount under Special Rate
42
43
44
45
46
Amount under Regular Rate
Merchandise/Finished Goods Inventory, Beginning
Add: Purchases of Merchandise/Cost of Goods Manufactured
Total Goods Available for Sale
Less: Merchandise/Finished Goods Inventory, End
Cost of Sales (to Item 16)
Schedule 3
Schedule of Cost of Sales (Service)
Amount under Special Rate
47
Direct Charges - Salaries, Wages and Benefits
48
Direct Charges - Materials, Supplies, and Facilities
49
Direct Charges - Depreciation
50
Direct Charges - Rental
51
Direct Charges - Outside Services
52
Direct Charges - Others
53
Total Cost of Services (Sum of Items 47 to 52) (to Item 16)
Schedule 4
Amount under Regular Rate
Schedule of Non-Operating and Taxable Other Income
Special Rate
Nature of Income
Creditable Tax Withheld
Taxable Amount
Regular Rate
Creditable Tax Withheld
Taxable Amount
54
55
56
57
58
59
60
Total Non- Operating and Taxable
Other Income (to Item 18)
Computation of Net Operating Loss Carry Over (NOLCO)
Schedule 5A
61
Gross Income
62
63
Less: Total Deductions exclusive of NOLCO & Deductions under Special Laws
Net Operating Loss Carry Over (to Schedule 5B)
Computation of Available Net Operating Loss Carry Over (NOLCO)
Schedule 5B
Net Operating Loss
Year
Incurred
(Attach additional sheet, if necessary)
Net Operating Loss Carry Over
Applied
Previous Year
Amount
Applied
Current Year
Net Operating
Expired
Loss
(Unapplied)
64
65
66
67
68
Total (To Item 112)
Section B
69
70
71
Computation of Minimum Corporate Income Tax (MCIT) of Current Year
Total Gross Income for MCIT purposes
Tax Rate
Minimum Corporate Income Tax (to Item 25)
Section C
Normal Income Tax
Year
72
73
74
75
as adjusted
Computation of Excess Minimum Corporate Income Tax (MCIT) of Previous Year
MCIT
Excess of MCIT over
Excess MCIT applied
Balance MCIT
Normal Income Tax
this Year
still allowable
as adjusted
as Tax Credit
2%
Expired Portion
of Excess MCIT
BIR FORM 1702 (ENCS) - PAGE 3
Section D
Deductions
TAXABLE
EXEMPT
Nature of Expense / Deduction
Salaries and Allowances
Fringe Benefits
Rental
Professional Fees
Director's Fees
Management and Consultancy Fee
Security Services
Janitorial and Messengerial Services
Tolling Fees
Other Outside Services
Advertising
Commissions
Repairs and Maintenance-Labor
Repairs and Maintenance-Materials/Supplies
Research and Development
Office Supplies
Royalties
Interest
Special Rate
Regular Rate
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
SSS, GSIS, Philhealth, HDMF and Other Contributions
95
Insurance
96
Representation and Entertainment
97
Transportation and Travel
98
Fuel and Oil
99
Communication, Light and Water
100
Taxes and Licenses
101
Losses
102
Bad Debts
103
Depreciation
104
Amortization of Intangibles
105
Depletion
106
Charitable Contributions
107
Amortization of Pension Trust Contribution
108
Miscellaneous
109
Others :
(attached addit'l sheets, if
110
necessary)
111
Total Expenses (Sum of Items 76 to 110)
112
Allowance of NOLCO (From Schedule 5B)
113
Total (Sum of Items 111& 112)
(to Item 20A, B & C)
Section E
114
115
116
117
118
119
120
Reconciliation of Net Income Per Books Against Taxable Income
(Attach additional sheets if necessary)
Special Rate
Regular Rate
Net Income/(Loss)per books..
Add: Non-deductible Expenses/Taxable Other Income
Total (Sum of Items 114 & 115)
Less: Non-taxable Income and Income subjected to Final Tax
Special Deductions:
Total (Sum of Items 117 & 118)
Net Taxable Income/(Net Loss) (Item 116 less Item 119)
We declare, under the penalties of perjury, that this return has been made in good faith, verified by us, and to the best of our knowledge and belief,
is true and correct, pursuant to the provisions of the National Internal Revenue Code, as amended, and the regulations issued under authority
thereof.
121
122
Treasurer/Asst. Treasurer
President/Vice President/Principal Officer/Accredited Tax Agent/
(Signature Over Printed Name)
(Signature over Printed Name)
Title/Position of Signatory
TIN of Signatory
Date of Issuance
Tax Agent Acc. No./Atty's Roll No. (if applicable)
Community Tax Certificate Number
123
Title/Position of Signatory
Place of Issue
124
TIN of Signatory
Date of Expiry
MM
125
Date Issued
DD
YYYY
Amount
126
ATC
IC 010
IC 055
IC 030
Description
Tax Rate
DOMESTIC
CORPORATION
1. In General
a. January 1- October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
32%
35%
30%
b. Minimum Corporate Income Tax
2. Proprietary Educational Institutions
2%
10%
a. Proprietary Educational Institution whose
gross income from unrelated trade,business
or other activity exceeds fifty percent (50%) of
the total gross income from all sources.
January 1- October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
IC 055
IC 031
Tax Base
Description
IC 020
6. Taxable Partnership
a. January 1 - October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
Gross Income
IC 055
On Taxable Income from All sources
IC 011
IC 010
b. Minimum Corporate Income Tax
7. Exempt Corporation
a. On Exempt Activities
b. On Taxable Activities
Taxable Income
from All sources
IC 021
32%
35%
30%
Taxable Income
from All sources
2%
Gross Income
b. Minimum Corporate Income Tax
3. Non Stock-Non Profit Hospitals
10%
a. Non Stock-Non Profit Hospitals whose
gross income from unrelated trade,business
or other activity exceeds fifty percent (50%) of
the total gross income from all sources.
January 1- October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
32%
35%
30%
IC 055
IC 040
b. Minimum Corporate Income Tax
2%
a. January 1 - October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
32%
35%
30%
IC 055
IC 041
b. Minimum Corporate Income Tax
5. National Gov't & LGU's
a. January 1 - October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
2%
On Gross Income
32%
35%
30%
On Taxable
Income from
Proprietary activities
IC 055
b. Minimum Corporate Income Tax
2%
On Gross Income
4. GOCC, Agencies & Instrumentalities
ATC
On Taxable Income from All sources
Taxable Income
from All sources
8. General Professional Partnership
9. Corporation covered by Special Law*
RESIDENT FOREIGN
CORPORATION
IC 070 1. In General
a. January 1 - October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
IC 055 b. Minimum Corporate Income Tax
IC 080 2. International Carriers
IC 101 3. Regional Operating Headquarters*
4. Corporation covered by Special Law*
IC 190 5. Offshore Banking
Units (OBU's)
Gross Income
On Taxable
Income from
All sources
IC 191
BIR FORM 1702 (ENCS) - PAGE 4
Tax Rate
Tax Base
32%
35%
30%
On Taxable
Income from
All Sources
2%
On Gross Income
0%
*same rate
as in 1a
exempt
On Taxable Income from all sources
32%
35%
30%
2%
2.5%
10%
On Taxable
Income from within the Philippines
10%
On Gross Taxable Income on
Foreign Currency Transaction
not subjected to Final Tax
a. January 1 - October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
32%
35%
30%
On Taxable Income
Other Than Foreign
Currency Transaction
6. Foreign Currency
Deposit Units (FCDU's)
10%
On Gross Taxable Income on
Foreign Currency Transaction
not subjected to Final Tax
a. January 1 - October 31, 2005
November 1, 2005 - December 31, 2008
January 1, 2009
32%
35%
30%
On Taxable Income
Other Than Foreign
Currency Transaction
* PLEASE REFER TO REVENUE DISTRICT OFFICES
BIR Form No. 1702 - Annual Income Tax Return (For Corporations and Partnerships)
GUIDELINES AND INSTRUCTIONS
On Gross Income
Gross Philippine Billing
On taxable Income
Who shall file
Every corporation, partnership no matter how created or organized, joint
stock companies, joint accounts, associations (except foreign corporation not
engaged in trade or business in the Philippines and joint venture or consortium
formed for the purpose of undertaking construction projects or engaging in
petroleum, coal, geothermal and other energy operations), government-owned
or controlled corporations, agencies and instrumentalities shall render a true
and accurate income tax return in accordance with the provisions of the Tax
Code. The return shall be filed in triplicate copies by the president/ vicepresident/other principal officer/Accredited Tax Agent and shall be sworn to
by such officer/agent and by the Treasurer or Assistant Treasurer.
Every general professional partnership shall file a return of its income
setting forth the items of gross income and of deductions and the names,
TINs, addresses and shares of each of the partners.
When and Where to File
The return shall be filed, with or without payment, on or before the 15th
day of the fourth month following the close of the taxpayer's taxable year.
This return shall be filed with any Authorized Agent Bank (AAB) located
within the territorial jurisdiction of the Revenue District Office where the
taxpayer is required to register/which has jurisdiction over the location of the
principal office of the CORPORATION filing the return.
In places where there are no AABs, the return shall be filed with the
Revenue Collection Officer or Duly Authorized City or Municipal Treasurer
of the municipality or city under the jurisdiction of the Revenue District
Office where the taxpayer is required to register/which has jurisdiction over
the location of the principal office of the CORPORATION filing the return.
When and Where to Pay
Upon filing this return, the total amount payable shall be paid in full to
the AAB where the return is filed. In places where there are no AABs,
payment shall be made directly to the Revenue Collection Officer or duly
Authorized City or Municipal Treasurer who shall issue Revenue Official
Receipt (BIR Form No. 2524).
Where the return is filed with an AAB, taxpayer must accomplish and
submit BIR-prescribed deposit slip, which the bank teller shall machine
validate as evidence that payment was received by the AAB. The AAB
receiving the tax return shall stamp mark the word Received on the return
and also machine validate the return as proof of filing the return and payment
of the tax by the taxpayer, respectively. The machine validation shall reflect
the date of payment, amount paid and transactions code, the name of the bank,
branch code, tellers code and tellers initial. Bank debit memo number and
date should be indicated in the return for taxpayers paying under the bank
debit system.
For EFPS Taxpayer
The deadline for electronically filing and paying the taxes due thereon
shall be in accordance with the provisions of existing applicable revenue
issuances.
following the year in which such corporation commenced its business
operation, when the MCIT is greater than the tax computed using the normal
income tax rate. Any excess of the MCIT over the normal income tax shall be
carried forward and credited against the normal income tax for the three (3)
immediate succeeding taxable years.
The MCIT shall be determined on a taxable year basis.
Penalties:
1.
2.
3.
4.
There shall be imposed and collected as part of the tax:
A surcharge of twenty five percent (25%) for each of the following
violations:
a) Failure to file any return and pay the amount of tax or
installment due on or before the due dates;
b) Unless otherwise authorized by the Commissioner, filing a
return with a person or office other than those with whom it
is required to be filed;
c) Failure to pay the full or part of the amount of tax shown on
the return, or the full amount of tax due for which no return is
required to be filed, on or before the due date;
d) Failure to pay the deficiency tax within the time prescribed
for its payment in the notice of assessment.
A surcharge of fifty percent (50%) of the tax or of the deficiency
tax, in case any payment has been made on the basis of such return
before the discovery of the falsity or fraud, for each of the
following violations:
a) Willful neglect to file the return within the period prescribed
by the code or by rules and regulations; or
b) In case a false or fraudulent return is willfully made.
Interest at the rate of twenty percent (20%) per annum on any
unpaid amount of tax, from the date prescribed for the payment
until it is fully paid.
Compromise penalty.
Attachments Required:
1. Certificate of the independent CPA (The CPA Certificate is required if
the gross quarterly sales, earnings, receipts or output exceed P 150,000);
2. Account Information Form (AIF) and/or Financial Statements;
3. Certificate of Income Payments not subjected to Withholding Tax (BIR
Form 2304);
4. Certificate of Creditable Tax Withheld at Source (BIR Form 2307);
5. Duly approved Tax Debit Memo, if applicable;
6. Proof of prior years' excess credits, if applicable;
7. Proof of Foreign Tax Credits, if applicable;
8. For amended returns filed, proof of tax payment and the return
previously filed.
9. Certificate of Tax Treaty/Relief;
10. Schedule for returns filed by General Professional Partnerships;
NAME
Tax Refund/Credit
An excess of the total tax credits/payments over the actual income tax
due computed in the final adjusted return may be refunded or issued with the
Tax Credit Certificate to the taxpayer or credited against his estimated income
tax liabilities for the quarters of the succeeding taxable years. The taxpayer
shall exercise his option by marking with an "x" the appropriate box, which
option shall be considered irrevocable for that taxable period. Thus, once the
taxpayer opted to carry-over and apply the excess income tax against income
tax due for the succeeding taxable year, no application for cash refund or
issuance of a tax credit certificate shall be allowed. In case the taxpayer fails
to signify his choice, the excess payment shall be automatically carried-over
to the next taxable period.
Normal Rate of Income Tax
The regular rates of income tax are as follows:
January 1 to October 31, 2005 --------------------------32%
November 1, 2005 to December 31, 2008 ------------35%
January 1, 2009 and onwards ---------------------------30%
Minimum Corporate Income Tax (MCIT)
A minimum corporate income tax of two percent (2%) of the gross
income is imposed on a corporation beginning on the fourth year immediately
TIN
ADDRESS
SHARE OF EACH
PARTNER
Note: All Background information must be properly filled up.
All returns filed by an accredited tax agent on behalf of a taxpayer shall
bear the following information:
A. For CPAs and others (individual practitioners and members
of GPPs);
a.1 Taxpayer Identification Number (TIN); and
a.2 Certificate of Accreditation Number, Date of Issuance,
and Date of Expiry.
B. For members of the Philippine Bar (individual practitioners,
members of GPPs);
b.1 Taxpayer Identification Number (TIN); and
b.2 Attorneys Roll number or Accreditation Number, if
any.
Box Nos. 1 & 2 refer to transaction period and not the date of filing this
return.
The last 3 digits of the 12-digit TIN refers to the branch code.
TIN = Taxpayer Identification Number
ENCS
1702
