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Taxes are mandatory contributions imposed by the government and are used to fund infrastructures and services for the public. Some of these are hospitals, schools, road works, and government offices.
In addition, the collected tax is used to maintain and further develop the economy of the country. They are indeed vital to keep a nation running, and certain penalties are given when an individual fails to abide by the taxation law.
If you are required to file your income tax return (ITR), and you’re not quite sure of the process you should follow, seeking help from an experienced tax lawyer in the Philippines is the right thing to do. Yap Kung Ching & Associates Law Office has tax lawyers who are experts when it comes to tax law in the Philippines. We can easily guide you through it so you can file your taxes on time.
What Is an Income Tax Return?
Before discussing what an income tax return is, one must first know what income tax is. This refers to the percentage taxpayers pay to the government with regard to their income, salary, property profit, professional practice, business, or other sources of gross income. Everything has a corresponding income tax rate that taxpayers should be aware of to make sure that they are paying properly.
An income tax return form is filed with the Bureau of Internal Revenue (BIR) to report the said transactions and pay necessary taxes for the year. Filing the right form might be confusing for some, especially first-time payers, because there are several income tax return forms like BIR Form No. 1700, 1701, and 1701A.
This is where a tax attorney comes in handy. They can ensure that you completely comply with all applicable tax laws and regulations. Furthermore, a tax lawyer can do your tax auditing to help you avoid common tax complications.
Who Are Required to File Income Tax Returns?
Several people are required to file income tax returns. These are divided into two categories:
People required to file income tax returns include the following:
- Residents who receive income within and outside the Philippines
- Non-residents who are earning their income from sources inside the country
- Resident or non-resident aliens who are deriving their income from the country
There are also non-individuals who are required to file their income tax returns to the government. These are:
- Domestic corporations who earn their income from sources within and outside the Philippines
- Foreign corporations and those who have partnerships that get their income from sources inside the country
- Estates and trusts that are engaged in trade or business
How Do You File Your Income Tax Return?
Before filing your income tax return, it is best to consult with competent tax lawyers, such as the ones we have at YKC Law. With their help, you will be able to gather all the pertinent documents and determine the correct income tax return form that you should file. After making sure your documents are complete, here are the methods of filing that you can choose from:
Electronic Filing and Payment System
This method of filing allows taxpayers to file and pay for their income tax returns online. They simply need to access the eFPS website, go to the login page, and enroll. After that, they will be asked to fill out a form and click submit once they are done. However, this is only applicable for large and non-large taxpayers and others included in the Revenue Regulations No. 1-2013.
Electronic BIR Forms
Filing through electronic BIR forms can be done digitally. The taxpayers just have to go to the BIR website, click eServices, download the eBIRForms package, fill out the forms, and submit them to the online eBIRForms system. After that, they will receive an email from the BIR containing the confirmation receipt of their ITR.
It is also important for the taxpayers to save a copy of the finalized tax return since they will have to visit their revenue district office’s nearest authorized agent banks to pay their tax dues.
Those who want to file their income tax return personally can visit an authorized bank. They just have to present the accomplished BIR forms and required documents. A copy of the stamped duly and validated BIR form will be given to the taxpayer to prove that they have filed their income tax return.
What Happens if You Miss the Filing Deadline for Your Income Tax Return?
Every year, before April 15, taxpayers are required to file their income tax returns. If one fails to do so, a corresponding fine should be paid. There will be penalties, such as paying an additional 25% of the amount due and a 20% interest yearly from the deadline to the date of payment.
What Should You Do if You Forgot to Keep a Copy of Your Income Tax Return
Unforeseen situations cannot be avoided. If a taxpayer lost the copy of their income tax return, they may send a request email to the BIR, call the BIR hotline, or check it through the eFPS.
Where Can You Find the Right Tax Lawyer in the Philippines
Whether you think you already know the particulars of filing an income tax return, hiring a reputable tax lawyer in the Philippines is still recommended. Yap Kung Ching & Associates Law Office can offer you exceptional tax-related legal services that will ease your income tax return filing. Reach out to us today so that we can get started.
As citizens of this country, one of our main responsibilities is filing and paying our income tax returns yearly. This need not be a complicated process. A tax lawyer can easily help you comply, and YKC Law is here to assist you.
Feel free to contact us if you have questions about our services.