Monday, April 14, 2014

Are you required, not required, or exempt from filing your income tax return?

You should file your income tax return, if:

You are a Filipino citizen living in the Philippines, receiving income from sources within or outside the Philippines, and if—
You are employed by two or more employers, any time during the taxable year.
You are self-employed, either through conduct of trade or professional practice.
You are deriving mixed income. This means you have been an employee and a self-employed individual during the taxable year.
You derive other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax.
You are married, employed by a single employer, and your income has been correctly withheld—the tax due is equal to the tax withheld—but your spouse is not entitled to substituted filing.
You are a marginal income earner.
Your income tax during the past calendar year was not withheld correctly—if the tax due is not equal to the tax withheld.
You are a non-resident citizen—if you are a Filipino who works or resides abroad—receiving income from sources within the Philippines. (You are taxable only for the income you earn from the Philippines.)
You are not a Filipino citizen but you receive income from sources within the Philippines, regardless of your residency. (You are taxable only for the income you earn from the Philippines.)
*Also required to file their ITRs: Domestic corporations (including partnerships) receiving income from sources within and outside the Philippines. Foreign corporations (including partnerships) receiving income from sources within the Philippines. Estates and trusts engaged in trade or business.

You are not required to file an income tax return, if:
You are a minimum wage earner.
Your gross income (total earned for the past year) does not exceed your total personal and additional exemptions.
Your income derived from a single employer does not exceed P60,000 and the income tax on which has been correctly withheld.
Your income has been subjected to final withholding tax.
You are qualified for substituted filing. Requirements:
You are employed by a single employer during the taxable year.
You earn purely compensation income from that single employer.
Your tax due at the year’s end equals the tax withheld by the employer.
If you are married, your spouse also complies with the above conditions.
Your employer files the annual information return (BIR Form No.1604-CF).
Your employer issues BIR Form No.2316 to every employee.

You are exempt from filing income tax returns if:
You are a non-resident citizen who is:
A Filipino citizen not residing in the Philippines, but who has established with the BIR that you wish to remain living outside the country.
A Filipino citizen who leaves the Philippines during the taxable year to reside abroad, either as an immigrant of for permanent employment.
A Filipino citizen who works and earns income abroad.
A Filipino citizen previously considered a non-resident citizen.
You are an overseas Filipino worker whose income is derived solely from sources outside the Philippines.
If you are Filipino citizen working as an overseas seaman, your vessel must be engaged exclusively in international trade.

Share:

Featured Post

Mayor Bongat clarifies Emergency Shelter Assistance status in Naga City

NAGA CITY (Bicol Standard) – Hounded by incessant follow-ups on the release of the Emergency Shelter Assistance (ESA) for victims of 20...