Revenue Regulations No. 2-2014 dated January 24, 2014 prescribes the usage of BIR’s New Income Tax Return (ITR) forms for ITR filing covering taxable year ended December 31, 2013 and onwards.
The new forms (Version June 2013) are as follows:
- FORM 1700 – For individuals earning purely compensation income
- FORM 1701 – For self-employed individuals, estates and trust
- FORM 1702-RT – For corporation, partnership and other non-individual taxpayer subject only to regular income tax rate
- FORM 1702-EX – For corporation, partnership and other non-individual taxpayer exempt under the tax code, as amended
- FORM 1702-MX – For corporation, partnership and other non-individual taxpayer with mixed income subject to multiple income tax rates or with income subject to special/ preferential rate
BAR CODES- Through an optical character reader, the forms can be electronically stored. A wise move since soft copies are easier to find than going to the BIR bodega in order to retrieve hard copies of the forms. BIR can save bodega space on this also. Besides, no more fire hazards.
DROPPING OF CENTAVOS- The forms have no space for centavos anymore. So what will you do with your centavos? Keep it. Just kidding. Round it off to nearest peso. If the amount of centavos is 49 or less, the centavos will be dropped. If the amount of centavos is 50 or more, it will be rounded off to the nearest peso.
SPLITTING OF FORM 1702 INTO 3- Previously, corporation, partnership and other non individual taxpayers regardless whether they are subject to tax at a regular rate or preferential rate, taxable or not, are required to use Form 1702. Under the new forms, corporation, partnership and other non individual taxpayers subject to regular rate [Sections 27(A) and 28(A)(1) of the Tax code, as amended] will use FORM 1702-RT. Corporation, partnership and other non individual taxpayers which are exempt [Section 30 and those exempted under Section 27(C)] will fill in FORM 1702-EX, while corporation, partnership and other non individual taxpayers with mixed income subject to multiple income tax rates or with income subject to special/ preferential tax rates shall file the FORM 1702-MX.
Since the forms will be read by an optical character reader, new guidelines are set as to the manner of filling in the forms. They are the following:
1. Enter all required information in CAPITAL LETTERS using BLACK INK.
2. Mark applicable boxes with an “X.”
3. Indicate Taxpayer Identification Number (TIN) and registered name on EACH PAGE.
4. Required information must be supplied with CAPITAL LETTERS where each character (including comma or period) shall occupy one box and leave one space blank for every word. However, if the word is followed by a comma or period, there is no need to leave blank after the comma or period.
5. Do not write “NONE” or make any other marks in the box/es.