Guide in Accomplishing My Annual ITR

First, My Profile

I am a self-employed individual, who derived income by providing my clients with accounting and tax consultancy services. My income tax liability will be computed based on compensation (i.e. service fees) for services rendered to my clients.

I am now in the process of accomplishing my annual income tax return for taxable year 2015.

Below are easy step-by-step process in accomplishing the annual income tax return (ITR) using the eBIRForms Package.

Step 1

Open the eBIRForms application downloaded from the BIR website.

In the Profile screen, you will be required to fill-up all data fields as follows:

·         TIN

·         RDO Code

·         Line of Business

·         Registered Name

·         Registered Address

·         ZIP Code

·         Telephone Number

·         Email Address

Step 2

In the List of BIR Forms section of the Profile Screen, there is a drop-down list where you can select the BIR Form you need.

In this case, you will select BIR Form No. 1701. Then click Fill-up button.

Step 3

Then a confirmation screen will appear. Enter your TIN and Email address.

Step 4

In Page 1 of BIR Form No. 1701, the screen shows Part I - Background Information on Tax Filer. You will need to fill-up all the required information.

Step 5

In Page 2  and Page 3 of Form 1701, nothing is entered because the fields are computer-generated. Page 2 contains Part IV - Computation of Regular Income Tax; Page 3 contains Part V - Summary of Income Tax Due.

Page 4 - Part VII - Other Relevant Information - Spouse. This page is required to be filled-up only if the spouse is also earning income.

Proceed now to Page 5 - Schedule 2 - Sales/Revenue/Receipts, enter the amount of the gross revenue/receipts.

Step 6

Proceed to Page 6 - Schedule 4C - Cost of Services, enter the amount of Cost of Services itemized as follows:

·         Salaries

·         Materials, Supplies and Facilities

·         Depreciation

·         Rental

·         Outside Services

·         Others

Step 7

Proceed to Page 7 - Schedule 6 - Ordinary Allowable Itemized Deductions, enter the amount of any allowable deductions. (Examples: Fuel & Oil, Insurance, Office Supplies, Research & Development, Taxes & Licenses, Transportation & Travel, and others)

Step 8

Page 8 which contains Schedule 8 - Computation of NOLCO. Accomplishing this page is not mandatory.

Proceed now to Page 9 - Schedule 9 - Tax Credit/Payments, enter tax credits or tax payments for the first three(3) quarters, if any.

Proof of tax credits/payments are required to be submitted with the ITR.

Step 9

Proceed to Page 9 - Schedule 10 - Balance Sheet, enter figures or amounts from your Balance Sheet.

Pages 10 & 11 are normally not applicable.

Page 12 is only an overview of the Consolidated Computation of Tax

End of Process.

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