Whether you need to file ITR (an annual income tax return) with the Bureau of Internal Revenue depends on where your income came from. How much you earn matters less. Substituted filing usually covers a worker with one employer all year. By contrast, anyone with two employers, freelance clients, or a small business on the side normally files on their own. The regular deadline is April 15 of the following year. For 2025 income, BIR moved it to May 15, 2026 through Revenue Memorandum Circular No. 30-2026.
Substituted filing: when your employer’s Form 2316 is enough
Under BIR’s withholding rules (Revenue Regulations No. 11-2018, which amended RR 2-98), a pure compensation earner qualifies for substituted filing when all of these are true:
- you earned purely compensation income during the year;
- you worked for only one employer in the Philippines for the whole calendar year;
- the tax withheld by your employer equals your tax due; and
- your employer filed its annual information return (BIR Form 1604-C) and gave you a signed Form 2316.
In that case, the Form 2316 signed by you and your employer serves as your annual return, and you do not have to file ITR yourself. Keep your copy, because banks, embassies, and lenders often ask for it as proof of income.
Who must file ITR on their own
You generally need to file a return yourself if you:
- had two or more employers in the same year, either at the same time or one after another;
- had compensation income and also business or professional income (mixed-income earners);
- are self-employed or a professional, such as a freelancer, online seller, or doctor in private practice;
- had an employer that did not withhold the correct tax; or
- earned compensation from an employer that is not required to withhold, such as a foreign embassy or international organization.
For employees, BIR’s Form 1700 page lists who is excused from filing: minimum wage earners, individuals whose taxable income does not exceed ₱250,000, those whose only income was already subject to final withholding tax, and single-employer workers whose tax was correctly withheld. It also states that anyone paid by two or more employers at the same time during the year must file. Self-employed people and mixed-income earners are different. BIR’s Form 1701 page says they file regardless of the amount of gross income, so a low income or zero tax due does not excuse them.
Which form to use when you file ITR
| BIR form | Who uses it | Official reference |
|---|---|---|
| 1700 | Purely compensation income, but not covered by substituted filing (for example, two employers in one year) | BIR Form 1700 page |
| 1701A | Income purely from business or profession, taxed either at graduated rates with the optional standard deduction (OSD) or at the 8% rate | BIR Form 1701A page |
| 1701 | Business or professional income including mixed-income earners, with one or more income tax rates; also used for itemized deductions | BIR Form 1701 page |
| 1701-MS | Optional two-page return for micro and small taxpayers in business or profession, including mixed-income earners, whose business income is under a single rate (graduated, 8%, special, or exempt) | BIR Form 1701-MS page |
How to choose between 1701, 1701A, and 1701-MS
Start with your income mix. If you only have salary and do not qualify for substituted filing, use 1700. If you have any business or professional income, you are choosing among the 1701 family:
- 1701A fits a purely self-employed person who chose the 8% rate, or graduated rates with the 40% OSD. It cannot be used if you also have compensation income.
- 1701 is the catch-all. It covers mixed-income earners, itemized deductions, and anyone whose income falls under more than one rate.
- 1701-MS is a simplified option created under the Ease of Paying Taxes Act (RA 11976). BIR’s Form 1701-MS page defines micro taxpayers as having gross sales below ₱3 million and small taxpayers as having ₱3 million to below ₱20 million. If you fall in those groups and your business income uses a single rate, you may use 1701-MS even as a mixed-income earner.
1701-MS is optional. In its FAQ for micro and small taxpayers (RMC 20-2026, Annex C), BIR says micro and small taxpayers may choose 1701, 1701A, or 1701-MS. It also says that a taxpayer who already filed on 1701 or 1701A does not need to file again on 1701-MS. You also do not need to update your Certificate of Registration just to use it. For the 2025 return, BIR added electronic filing of 1701-MS through the offline eBIRForms package version 7.9.6 in RMC No. 37-2026. You can still file it manually: at any authorized agent bank if you have tax to pay, or at any Revenue District Office if you have none.
Form versions change, so download the current one from the BIR forms page or use the latest eBIRForms package rather than reusing an old file.
Two employers in one year: why you must file ITR
Changing jobs mid-year is the most common reason employees end up having to file. Each employer computes withholding only on what it paid you, so your total tax may be higher than what both withheld. Ask your previous employer for its Form 2316 when you leave and give it to your new employer before year-end. Even if the new employer combines both incomes, BIR still treats you as having had two employers. File ITR on Form 1700 and attach both Forms 2316.
Mixed-income earners and the 8% option
If you are employed and also earn from freelancing or a business, graduated rates still apply to your compensation. For the business or professional part, you may choose graduated rates or the 8% income tax on gross sales or receipts. The 8% option applies only if gross sales or receipts do not exceed ₱3 million for the year. According to Revenue Regulations No. 8-2018, mixed-income earners pay the 8% on the whole business gross. They do not get the ₱250,000 reduction that purely self-employed taxpayers get, because that amount is already built into the zero-tax first bracket of the compensation computation.
You usually make the choice in the first quarterly return of the year, so you cannot simply switch it in the annual return. Before you file ITR as a mixed-income earner, you also need BIR registration for your business or profession. You need books of accounts and invoices as well. Our TIN ID guide covers registration basics.
What to prepare before you file ITR
- your TIN and registered name;
- Form 2316 from every employer you had during the year;
- for business income: summaries of sales or receipts, Forms 2307 from clients who withheld tax, and quarterly returns already filed;
- for itemized deductions: supporting receipts and records; and
- proof of any tax payments made during the year.
If your employer included your 13th month pay and other benefits, check that the non-taxable portion (up to ₱90,000) was treated correctly on your Form 2316.
Ways to file ITR: eBIRForms, eFPS, and manual filing
Most individuals file through eBIRForms, a free offline package from BIR. You fill out the form on your computer, validate it, and submit it online; BIR then emails a filing confirmation. BIR requires large taxpayers and some others to use the Electronic Filing and Payment System (eFPS). Under RMC 37-2026, Forms 1701 and 1701A are filed electronically through eBIRForms or eFPS. Form 1701-MS can be filed through eBIRForms 7.9.6 or later, or manually as described above. BIR’s Online Registration and Update System (ORUS) handles registration and updates rather than annual filing.
Under the Ease of Paying Taxes Act (RA 11976), you are no longer limited to your own Revenue District Office. For the 2025 returns, RMC 30-2026 confirms that you can pay electronically, or manually at the nearest authorized agent bank, whatever your RDO.
Step by step for an employee with two employers
- Collect both Forms 2316 and check that the names, TIN, and amounts are correct.
- Download and open the current eBIRForms package, then select Form 1700.
- Enter your details and both employers’ compensation and tax withheld.
- Let the form compute your tax due and compare it with total tax withheld.
- Validate, then submit online and save the email confirmation.
- If there is tax due, pay it through an authorized channel by the deadline.
- Submit required attachments as BIR instructs for the year.
Worked examples using the published tax table
These examples use the graduated rates in effect from January 1, 2023, as published in RR 8-2018. Income up to ₱250,000 is taxed at 0%. Above that, the rate is 15% of the excess over ₱250,000 up to ₱400,000, then ₱22,500 plus 20% of the excess over ₱400,000 up to ₱800,000. The people and amounts are made up to show the arithmetic.
Example 1: two employers, Form 1700
Assumptions: Ana’s taxable compensation from both employers, after non-taxable benefits and mandatory contributions, totals ₱500,000. Her two Forms 2316 show ₱38,000 withheld in total. She has no other income.
- Tax due: ₱22,500 + 20% × (₱500,000 − ₱400,000) = ₱42,500
- Less tax withheld: ₱38,000
- Tax still payable with Form 1700: ₱4,500
Because the balance is more than ₱2,000, the installment rule described below lets Ana pay ₱2,250 when she files and ₱2,250 by October 15.
Example 2: mixed income with the 8% option
Assumptions: Carlo has ₱400,000 of taxable compensation from one employer. He also earned ₱300,000 gross from weekend photography, is registered for it, and elected the 8% rate in his first quarterly return. His employer withheld ₱22,500. No client withheld tax on the photography income.
- Tax on compensation: 15% × (₱400,000 − ₱250,000) = ₱22,500
- Tax on business income at 8%, with no ₱250,000 reduction for mixed-income earners: 8% × ₱300,000 = ₱24,000
- Total tax due: ₱46,500; less ₱22,500 withheld and any 8% tax already paid in his quarterly returns
Because Carlo’s gross sales are under ₱3 million and his business income uses a single rate, he may file on Form 1701 or the simplified Form 1701-MS. He attaches his Form 2316 either way. If he had no photography income, his employer’s Form 2316 would cover him through substituted filing.
Paying the tax due after you file ITR
BIR accepts payments through authorized agent banks and electronic payment channels listed on its website, which have included bank online platforms and e-wallets. Keep the payment confirmation together with your filing confirmation. If your tax due is more than ₱2,000, Section 56(A)(2) of the Tax Code allows two equal installments. You pay the first when you file and the second on or before October 15 of the same year.
If you file ITR late
Late filing or payment adds a surcharge, interest, and a possible compromise penalty. Under Sections 248 and 249 of the Tax Code, the standard surcharge is 25% of the tax due. Interest runs at double the legal rate, which is currently 12% a year. Revenue Regulations No. 6-2024 implements the Ease of Paying Taxes Act for micro and small taxpayers. It cuts their surcharge to 10%, halves the interest to 6% a year, and halves the compromise penalty. If you owe nothing but filed late, a compromise penalty may still apply. Ask your RDO how to settle it rather than ignoring the return.
Common mistakes
- assuming that two Forms 2316 mean you are covered by substituted filing;
- forgetting side income paid through e-wallets or bank transfers;
- registering a second TIN instead of updating the first one, which is illegal;
- using an outdated form or eBIRForms version; and
- not keeping the BIR email confirmation as proof of filing.
Freelancers paid by foreign clients
Many online workers get paid by clients abroad through platforms or e-wallets. That income is still Philippine-taxable for residents, even if no Form 2307 is ever issued, because foreign clients do not withhold Philippine tax. Keep invoices, platform statements, and transfer records for the whole year, since these become your proof of gross receipts when you file ITR. Converting foreign currency at the rate on the date you received the payment keeps your records consistent.
Keeping records after you file ITR
Under Section 203 of the Tax Code, BIR can generally assess taxes within three years from the filing deadline or the actual filing date, whichever is later. So keep your returns, Forms 2316 and 2307, receipts, and confirmations for at least that long. Many accountants recommend keeping them longer. Store digital copies in one folder per year, and name each file with the form number and year so you can find them quickly.
Frequently asked questions
Do I need to file ITR if I had no income?
If you had no income, there is usually nothing to file for income tax. If you registered as self-employed, however, you still have filing obligations until you update or close your registration.
Do I have to switch to Form 1701-MS?
No. BIR’s FAQ in RMC 20-2026, Annex C says 1701-MS is an alternative for micro and small taxpayers, not a requirement. If you already filed on 1701 or 1701A and paid any tax due, you do not need to file again.
Can I file for a family member?
An authorized representative can help, but the return is the taxpayer’s own responsibility. For general advice on authorizations and documents, see our government ID and document prep checklist.
Where can I get help?
Your RDO and the BIR contact center can answer questions about your registration and filing. A licensed accountant can help with mixed-income or business returns.
Checked October 25, 2026 against BIR’s income tax return form pages, RMC 20-2026 Annex C, RMC 30-2026, RMC 37-2026, RR 8-2018, and RR 6-2024. BIR sets deadlines, form versions, and payment channels each year. This is general information, not tax advice.
