Mastering Income Tax in the Philippines: A Comprehensive Guide for Professionals and Sole Proprietors

📝Income Tax Return (ITR) is a form filed by taxpayers in the Philippines to report income, expenses, and other important information.

💼Professionals and sole proprietors need to file the Income Tax Return (ITR) in the Philippines.

⏰The deadline for filing the annual Income Tax Return (ITR) is April 15th, while quarterly filings are due on May, August, and November 15th.

🔍The Income Tax Return (ITR) filing is required for Filipino citizens earning from local employers or receiving income from the Philippines, regardless of citizenship.

💯Minimum wage earners and overseas Filipino workers purely earning from foreign employers are exempted from filing income taxes in the Philippines.

What is an Income Tax Return (ITR)?

—An Income Tax Return (ITR) is a form filed by taxpayers in the Philippines to report income, expenses, and other important information to the Bureau of Internal Revenue (BIR).

Who needs to file the Income Tax Return (ITR)?

—Professionals and sole proprietors in the Philippines need to file the Income Tax Return (ITR). It is also required for individuals receiving income from the Philippines, regardless of citizenship.

What are the deadlines for filing the Income Tax Return (ITR)?

—The deadline for the annual filing of the Income Tax Return (ITR) is April 15th. Quarterly filings are due on May, August, and November 15th.

Are there exemptions from filing income taxes in the Philippines?

—Yes, minimum wage earners and overseas Filipino workers purely earning from foreign employers are exempted from filing income taxes in the Philippines.

What are the consequences of late filing for the Income Tax Return (ITR)?

—Late filing of the Income Tax Return (ITR) may incur a 25% surcharge on the taxes owed and 12% interest per year until paid.

00:00Before we start, make sure to have a notebook and pen handy.

00:12Welcome to Reddit Adult Philippines! This video focuses on income tax in the Philippines for professionals and sole proprietors.

01:43The deadline for filing the annual Income Tax Return (ITR) is April 15th, with quarterly filings due on May, August, and November 15th.

02:29Income Tax Return (ITR) filing is required for Filipino citizens earning from local employers or receiving income from the Philippines, regardless of citizenship.

04:38Minimum wage earners and overseas Filipino workers purely earning from foreign employers are exempted from filing income taxes in the Philippines.

09:38In scenario one, an individual who opted for the 8 percent tax rate earned 240,000 pesos and has no other source of income.

10:32In scenario two, an individual earned 500,000 pesos for the year with no other source of income.

11:28In scenario three, an individual opted for the graduated tax table and earned 2.5 million pesos with 1.7 million pesos of expenses.