BIR requires individual taxpayers to file annual information return

BIR requires individual taxpayers to file annual information return

By CHINO S. LEYCO
March 5, 2011, 11:47pm


 MANILA, Philippines – The Bureau of Internal Revenue (BIR) is requiring certain taxpayers to file an annual information return (AIR) starting taxable year 2010 to determine their true and accurate income.

In a statement, the government's main tax agency said that individuals, estates, and trusts will be required to file AIR or the BIR Form No. 1705 together with their income tax return (ITR).

The BIR said AIR shall include income subjected to final withholding tax and exclusions from gross income.

Individuals who are not required to file a tax return or those qualified for substituted filing may, however, file a tax return for loan, travel, and other purposes in which case they should also file the AIR.

Others not required to file an ITR but are required to file an AIR are pure compensation income earners whose annual taxable income derived from within the Philippines exceeds P500,000 tax and on which income the correct income tax has been correctly withheld. Also individuals, estates and trusts whose sole income has been subjected to final withholding tax in excess of P125,000 annually, whether remitted or not to the BIR and individuals whose sole income is exempt where the aggregate amount exceeds P500,000 annually.

Pure compensation income earners who derived income from two or more employers are required to file an ITR together with the AIR.

The deadline for filing is April 15 each year for those filing the ITR as well as the AIR and May 15 each year for those filing the AIR only.

Those filing their returns electronically shall, in the meantime, submit in hard copies the e-filed ITR and the AIR within 10 days from the filing of the electronic return until such time that electronic filing of the AIR becomes

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