WITH the deadline for annual income tax returns less than a month away, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. reminded self-employed individuals and online sellers to file their annual income tax returns (ITRs).
The deadline for the annual filing of ITRs is on April 15.
Speaking in Filipino in a Facebook video on Monday, March 24, Lumagui said those engaged in online selling and those operating a sole proprietorship, where the business is registered under an individual’s name rather than a corporation are required to file their annual ITRs using BIR Form 1701.
For those whose annual sales exceed P3 million, they must also submit an Auditor’s Report and Financial Statements prepared and signed by an external auditor accredited by the BIR.
“This ensures transparency, accuracy, and compliance with tax rules for businesses that have grown beyond the VAT threshold,” he said.
Taxpayers who have received BIR Form 2307, or the Certificate of Creditable Tax Withheld at Source, are also reminded to attach it to their Form 1701 as proof of tax credits applied to their income tax due.
The BIR held the Friendly Tax Compliance Verification Drive on Feb. 10 to 14, a nationwide initiative coinciding with Tax Awareness Month.
Aimed at fostering voluntary compliance by making tax rules more understandable and accessible, more than 24,000 establishments across the Philippines were visited on the first day of the drive.
“The BIR is here to educate our taxpayers, not to penalize them. Education leads to compliance. Improved services lead to compliance,” Lumagui said. (PNA)
