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Income Tax Filing For Self-Employed Individuals

The document discusses key information about professional certification, sole proprietorships, and different BIR forms for individual taxpayers in the Philippines. BIR Form 1701 is for individuals with business/professional income who use itemized deductions, while Form 1701A is for those with only business income who use the optional standard deduction or 8% flat tax rate. It also outlines options for manual/over-the-counter filing and payment through authorized agent banks or revenue collection officers, as well as electronic filing and payment methods. The lesson learned is that filing annual income tax returns through BIR Form 1701 or 1701A is important for self-employed individuals and small business owners to properly report their income and transactions.

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Jefferson Alingasa
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194 views2 pages

Income Tax Filing For Self-Employed Individuals

The document discusses key information about professional certification, sole proprietorships, and different BIR forms for individual taxpayers in the Philippines. BIR Form 1701 is for individuals with business/professional income who use itemized deductions, while Form 1701A is for those with only business income who use the optional standard deduction or 8% flat tax rate. It also outlines options for manual/over-the-counter filing and payment through authorized agent banks or revenue collection officers, as well as electronic filing and payment methods. The lesson learned is that filing annual income tax returns through BIR Form 1701 or 1701A is important for self-employed individuals and small business owners to properly report their income and transactions.

Uploaded by

Jefferson Alingasa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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KEY TAKEWAYS:

 Professional are the person formally certified by a professional boy belonging to a specific profession by
virtue of having completed a required examination or course of studies and/or practice, whose
competence can usually be measured against an establishes set of standards.
 Sole Proprietorship/Proprietorship is the simplest chosen to start a business. It is an unincorporated
business owned and run by one individual with no distinction between the business and the owner who is
entitled to all profits and are responsible for all the business’s debts losses and liabilities.
 BIR FORM NO. 1701A Individual taxpayers with income from business or practice of profession only
and; the method of deduction used is optional standard deduction (OSD); or opted to avail of 8% flat
income tax rate
- Pure business Income Only
- 8% Flat Income tax rate
- Method of deduction is OSD
 BIR FORM NO. 1701 Individual taxpayers with income from business/practice of profession only and
the method of deduction used is itemized deduction; Individual taxpayers with income from
business/practice of profession and at the same time with compensation income (mixed income earner)
- Mixed Income Earner
- Graduated Income Tax rates
- Method of deduction is itemized deductions
 Manual/Over the Counter Filing of Returns and Payment of taxes through; Authorized Agents Banks
(AABs) under the jurisdiction of the concept Revenue District Office (RDO) where the taxpayer is
registered
- No limit on cash and check payment

 Revenue Collections Officers (RCOs) under the RDO where the taxpayer is registered
- During filing season, No limit on cash and check for payment of Annual Income tax
 Electronic Filing and Payment System( eFPS)
 Modes of Payment for Manual/OTC; Cash, Check, Combination of Cash and Check for payment of
single tax liability and Bank Debit System
 eAFS is and additional option aside from physically submitting your ITR/AFS; can be accessed thru any
browser of any device that has stable internet and access to files.

LESSON LEARNED:

It is quite similar from the first webinar that we have been watched a week ago. BIR Form 1701, also
known as Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts is a tax form which
summarizes all the transactions made over the tax calendar year. This return needs to be filed by individuals
listed below:

1. A resident who operates a business within (or not) in the Philippines.


2. A resident alien, or a non-resident citizen (or alien) operating a business in the Philippines
3. A trustee, guardian of a minor, estate administrator or individuals acting out as an administrator on behalf of a
person whose operating a business. 1701 form needs to be filed on or before April 15th annually, and it should
cover all those income from the previous tax year.

If you’re filing for a small business, as a freelancer, or as an individual, learn the step-by-step process for
filing tax forms in Fast File. Generally, you are self-employed if any of the following apply to you. You carry on
a trade or business as a sole proprietor or an independent contractor.You is a member of a partnership that
carries on a trade or business. Filing for self employed is very important for those people who have a work or
any business. This webinar discussed about on how filing for Self-Employed, as my key take ways that’s all
information we need to know as an individual.

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