Every Philippine corporation — domestic or foreign-owned — must file an Annual Income Tax Return (ITR) with the Bureau of Internal Revenue. The annual ITR is not just a filing formality; it is the document that reconciles the quarterly tax payments made throughout the year against the actual annual liability, and it is the foundation for the Audited Financial Statements (AFS) required by the SEC.
Filing Timeline
For calendar-year companies (fiscal year ending December 31), the key dates are:
- Q1 ITR (BIR Form 1702Q) — due May 15
- Q2 ITR (BIR Form 1702Q) — due August 15
- Q3 ITR (BIR Form 1702Q) — due November 15
- Annual ITR (BIR Form 1702) — due April 15 of the following year
Quarterly returns are creditable — tax paid at the quarterly stage is deducted from the final annual liability. The annual ITR settles any remaining balance.
Fiscal-year companies (permitted under the NIRC) calculate deadlines from their own year-end — the annual ITR is due on the 15th of the fourth month after close.
What the EOPT Act Changed
The Ease of Paying Taxes Act (RA 11976, January 2024) made several material changes to ITR filing:
- Simplified format for micro and small taxpayers: the ITR was reduced from four to two pages
- No more ₱500 annual registration fee: removed entirely
- Electronic filing is the primary channel: BIR-accredited platforms are the default; manual filing is only permitted when electronic platforms are unavailable
- Five-year records retention: books of account and supporting documents must be kept for five years (reduced from ten), from the day following the filing deadline
- Taxpayer classification: companies are now formally classified as micro (gross sales below ₱3 million), small (₱3 million to below ₱20 million), medium (₱20 million to below ₱1 billion), and large — with the classification affecting filing procedures and form variants
Supporting Obligations Around the Annual ITR
The annual ITR does not stand alone. It must be consistent with:
- Audited Financial Statements (AFS): required from corporations with gross quarterly sales exceeding ₱150,000. The AFS is prepared by an independent CPA and submitted to both the BIR and the SEC.
- General Information Sheet (GIS): filed with the SEC within 30 days of the annual stockholders’ meeting
- Annual alphalist of payees: withholding tax summaries (BIR Forms 1604-E and 1604-F) are due January 31
How Chamberlain Handles This
Chamberlain manages the full annual ITR cycle: quarterly returns throughout the year, year-end reconciliation, coordination with your external auditor for the AFS, and submission of the final Form 1702. We track every deadline and handle BIR correspondence.
See pricing for our annual compliance retainer, or contact us to discuss your company’s situation. For the complete tax compliance picture, visit the taxes hub or review our corporate compliance services.
Frequently asked questions
When is the annual income tax return due in the Philippines?
The annual ITR (BIR Form 1702) is due on the 15th day of the fourth month following the close of the taxable year. For calendar-year companies, this is April 15 of the following year.
What forms does a corporation file for annual income tax?
Most corporations file BIR Form 1702-RT (regular tax regime) or BIR Form 1702-MX (for companies with mixed income subject to different rates). Companies registered with PEZA or BOI may use specialised variants. Quarterly returns are filed using BIR Form 1702Q.
What did the EOPT Act change about annual ITR filing?
The Ease of Paying Taxes Act (RA 11976, 2024) reduced the ITR to two pages for micro and small taxpayers, removed the annual registration fee, cut the book-keeping retention period to five years, and eliminated the 25% surcharge for wrong-venue filings. Electronic filing platforms are now the primary channel.