ADMINISTRATIVE

PROVISIONS FOR
INDIVIDUAL INCOME
TAX
MR. JOMAR E. PINEDA
LEARNING OBJECTIVES:
After successful completion of this topic, you should be able to:
1. Be able to know the place and due date of the Income Tax Return (Annual, Quarterly, as
applicable) & other administrative provisions of the Bureau of Internal Revenue.
2. Be able to know the compliance requirements of BIR on keeping of book of accounts,
prescriptive period and administrative requirements.
3. To gain knowledge of the tax return preparation and filing and tax payments.
4. Be able to know different accounting periods an accounting method for income recognition
in accounting (PFRS) vs Tax Accounting
5. Enumerate the requisites of taxable income
6. Identify the different classes of Income and Taxpayer
INCOME TAX
What is Income Tax?
COMPLIANCE
REQUIREMENTS
1. Registration with BIR
2. Keeping of accounting records and books
3. Issuance of sales invoice and official receipts
4. Filing of tax return and payment of related
taxes
5. Withholding of taxes on specified payment to
suppliers-sellers
REQUIRED TO FILE INCOME
TAX RETURNS
1. Individuals
2. Non-Individuals
Who are the persons not Required to file
Income Tax Returns?
THE INCOME TAX RETURN SHALL NE FILE
IN DUPLICATE BY THE FOLLOWING
PERSONS
1. A resident Citizen
2. A non-resident Citizen
3. A resident Alien
4. A non-resident Alien engaged in trade or
business
ANNUAL INCOME TAX FOR INDIVIDUALS
EARNING PURELY COMPENSATION
INCOME
Form- BIR Form 1700

Documentary Requirements
1. Certificate of Income tax Withheld on Compensation (BIR Form
2316)
2. Duly Approved Tax Debit Memo
3. Proofs of foreign tax credits
4. Income Tax Return

Deadline for Filing Annual ITR

15th day of April
ANNUAL INCOME TAX FOR
INDIVIDUALS, ESTATES, AND TRUSTS
Form- BIR Form 1701

Deadline for Filing Annual ITR

15 day of April
th
ACCOUNT INFORMATION FOR SELF-
EMPLOYED INDIVIDUALS, ESTATES, AND
TRUSTS
Form- BIR Form 1701 AIF

Notes:
Amendments pursuant to Sec. 71 of RA
10963 , Tax Reform Acceleration and
Inclusion Act (TRAIN Law)
QUARTERLY INCOME TAX FOR
INDIVIDUALS, ESTATES, AND TRUSTS
INCLUDING THOSE WITH MIXED INCOME
Form- BIR Form 1701 Q

Note:
Amendments Pursuant to Sec. 71 of RA
10963, Tax Acceleration and Inclusion Act
(TRAIN Law)
ANNUAL INFORMATION FORM FOR SELF-
EMPLOYED INDIVIDUALS, ESTATES, AND
TRUSTS
Form- BIR Form 1701 AIF

Deadline of filing of Quarterly Income Tax Returns

1. May 15 of the current taxable year (1st qtr.)
2. August 15 of the current taxable year (2nd year)
3. November 15 of the current taxable year (3rd qtr)
INCOME TAX FOR
INDIVIDUALS DERIVING
PURELY COMPENSATION
INCOME
What is Substituted Filing?
REQUISITES FOR INDIVIDUALS QUALIFIED
FOR SUBSTITUTED FILING OF BIR FORM
1700
1. Receives purely compensation income regardless of amount;
2. Compensation from only one employer in the Philippines for
the calendar year;
3. Income tax has been withheld correctly by the employer (tax
due equals tax withheld);
4. the employee's spouse also complies with all the three
conditions stated above;
5. Employer files the BIR Form No. 1604-C; and
6. The employer issues each employee BIR Form No. 2316 (latest
version)
REQUISITES FOR INDIVIDUALS NOT
QUALIFIED FOR SUBSTITUTED FILING OF
BIR FORM 1700
1. Individuals with two or more employers concurrently and/or
successively at anytime during the taxable year.
2. Employees whose income tax have not been withheld correctly resulting
to collectible or refundable return.
3. Individuals deriving other non-business, non-profession-related income
in addition to compensation income not otherwise subject to final tax.
4. Individuals receiving purely compensation income from a single
employer whose income tax has been correctly withheld but whose
spouse does not qualify tor substituted filing.
5. Non-resident aliens engaged in trade or business in the Philippines
deriving purely compensation income or compensation income and
other non-related business, non-profession-related income.
SUBMISSION OF BIR FORM
NO. 2316
The employer are required to submit the
duplicate copy of BIR Form No, 2316 to
the RDO where they are registered on or
February 28
AMENDED INCOME TAX
RETURNS
Under Sec. 51 of RA 8424
a. When to file

Under 51; Filing of Husband and Wife

b. Husband and Wife
c. Return of parent include Income if Children
d. Persons under disability
e. Signature presumed correct
TAXABLE YEAR
1. Calendar Year
2. Fiscal Year
METHODS OF ACCOUNTING
ALLOWED BY LAW
1. Cash basis
2. Accrual basis
3. Accounting for long-term contracts
4. Installment basis method
ASSESSMENT
Asta lives in Manila in 2003. He is a Japanese national and later on, became a
Filipino in 2005 under RA Xxxx. He acquired lands worth 1M in 2006. Another
land in Cebu worth 2M. In 2019, due to increase in value of lands, all of his
lands had a fair value of 10M. Asta did not file an Income Tax return in 2020
despite of increase in value of his wealth properties. BIR sued Asta for tax
evasion and demanding from him to pay 3M pesos for taxes and surcharges.
Asta hired a lawyer to defend him. If you are the lawyer of Asta, what will you
do? Explain