The Commissioner of Internal Revenue (CIR) has issued Revenue Memorandum Circular (RMC) No. 32-2018, which prescribes the new Quarterly Income Tax Return for Individuals, Estates and Trusts (BIR Form No. 1701Q), implementing the income tax provisions of the “Tax Reform for Acceleration and Inclusion” (TRAIN) Law. The new BIR Form No. 1701Q shall now be used by taxpayers in filing and paying their quarterly income tax beginning the first quarter of 2018.

For manual filers, the new BIR Form No. 1701Qis available at the BIR website, www.bir.gov.ph, under the Forms-Income Tax Return section. For those filing under the Electronic Bureau of Internal Revenue Forms (eBIR Forms), and the Electronic Filing and Payment System (eFPS), the new BIR Form No. 1701Q is available in the Offline eBIR Forms Package v7.1.

Payment of the income tax due for manual, eBIRForms, and eFPS filers shall be made through the following modes:

Manual Payments may be done through any BIR Authorized Agent Banks (AABs) located within the area of the Revenue District Office (RDO) where the taxpayer is registered. In places where there are no AABs, the return shall be filed and the tax paid with the concerned Revenue Collection Officer (RCO)of the RDO concerned.

Online Payments may be made through G Cash Mobile Payment; Landbank of the Philippines (LBP) Linkbiz Portal (for taxpayers who have an ATM account with LBP, or holders of Bancnet ATM Cards); or DBP Tax Online (for holders of VISA/Mastercard Credit Cards).

In case the taxpayer had already filed and paid the income tax due for the first quarter using the old return, he is still required to file his quarterly income tax return using the new BIR Form No. 1701Q.The reason for this is for the BIR to determine whether or not the taxpayer is availing of the 8 percent income tax rate based on gross sales/receipts. Note that under Revenue Regulations No. 8-2018, individuals earning income purely from self-employment or practice of profession whose gross sales/receipts do not exceed the value-added tax (VAT) threshold of P3,000,000, shall have the option to avail of the 8% tax on gross sales or receipts in lieu of the graduated income tax rates and the percentage tax under Section 116 of the Tax Code. If a taxpayer opts for the 8% income tax rate, he may signify his intention by checking Item No. 16 in BIR Form No. 1701Q, and such option shall be irrevocable for the taxable year.

In addition, the taxpayer shall mark the new return as an amended return and shall proceed to fill out the rest of the applicable fields/items. If a payment was made under the old return, the taxpayer shall indicate in the new return the amount paid under Item No. 59, “Tax Paid in Return Previously Filed.” If the computation results to additional taxes payable, the taxpayer shall pay the tax still due in accordance with modes of payment discussed above. Note that the taxpayer may incur penalties if payment is made after the due date. If the computation results to no payment/overpayment of taxes, the taxpayer shall file a “No Payment Return” through the use of the eBIR Forms.

Manila Times Source

ATTY. PEACHES ARANAS

Managing Partner LMA LAW