BIR issues new Income Tax Returns ITR Form - Revenue Memorandum Circular (RMC) No. 40-2011
Quezon City, 07 September 2011 – As part of its continuing efforts to streamline its processes, the Bureau of Internal Revenue (BIR) issued RevenueMemorandum Circular (RMC) No. 40-2011 dated September 5, 2011 notifying all concerned of the new Income Tax Return Forms for individual and corporate taxpayers that will be used starting this year covering taxable year 2011.
Released under the said RMC were enhanced versions asof June 2011 of BIR Form No. 1700 (Annual Income Tax Return for IndividualsEarning Purely Compensation Income), BIR Form No. 1701 (Annual Income TaxReturn for Self-Employed Individuals, Estates and Trusts) and BIR Form No. 1702(Annual Income Tax Return for Corporation, Partnership and Other Non-IndividualTaxpayer).
The issuance also provides that all juridical entities following the fiscal year of reporting are likewise required to use the new BIR Form No. 1702 starting with those covered by fiscal year ending January 31, 2012.
BIR Form No. 1700 is filed by employees except those expressly exempted by law from filing the same and except employees qualified under the “substituted filing scheme.” With the issuance of the new BIR Form 1700, however, pure compensation income earners whose annual taxable income derived from within the Philippines exceeds P500,000.00 and on which income the correct income tax has been correctly withheld are now required to file. Those employees deriving compensation income concurrently from two or moreemployers at any time during a taxable year shall likewise file the saidreturn, including Part IV thereof.
Part IV of the return refers to supplementalinformation on gross income/receipts subject to Final Withholding Tax and grossincome/receipts Exempt from Income Tax.
Also required to file the return but only Part I and Part IV thereof are individuals, estates and trusts whose sole income has been subjected to final withholding tax in excess of P125,000.00 annually, whether remitted or not to the BIR and individuals whose sole income is exempt from income tax where the total annual (exempt) income exceeds P500,000.00.
For BIR Form 1701, those required under the law to file the same should also fill up Part VIII thereof. Part VIII of the returnrefers to supplemental information on gross income/receipts subject to FinalWithholding Tax and gross income/receipts Exempt from Income Tax.
The new BIR Form No. 1702 now includes a Section onTaxpayer Activity Profile and a Section on Tax Relief Availment.
As of this writing, the RMC 40-2011 is still mysteriously missing from the bureau's official website.
