Year-End Tax Filing Guide Philippines 2025
Everything you need to know about filing your annual income tax return in the Philippines.
Important: The deadline for filing annual income tax returns (BIR Form 1700) is April 15, 2025. Late filing incurs penalties and interest charges.
What is Annual Income Tax Filing?
Annual income tax filing is the process of reporting your total income, deductions, and tax payments for the entire year to the Bureau of Internal Revenue (BIR). This is done through BIR Form 1700 (Annual Income Tax Return for Individuals) and must be filed by April 15 of the following year.
Even if you're an employee with taxes automatically withheld from your salary, you still need to file an annual return to reconcile your actual tax liability with the taxes already paid through withholding. This process may result in a refund if you overpaid or additional tax if you underpaid.
Who Needs to File BIR Form 1700?
Filing Requirements
Must File (Required)
- • Employees with annual gross income over ₱250,000
- • Self-employed individuals and professionals
- • Mixed income earners (employee + business/profession)
- • Individuals with multiple employers
- • Those who want to claim refunds
Optional Filing
- • Employees with income below ₱250,000
- • Those with no additional income
- • Individuals with only one employer
- • Those who don't want to claim refunds
Important Deadlines and Penalties
| Filing Period | Deadline | Penalty for Late Filing |
|---|---|---|
| Annual Income Tax Return | April 15, 2025 | ₱1,000 + 25% surcharge + 12% interest |
| Quarterly Income Tax Returns | 45 days after quarter end | ₱1,000 + 25% surcharge + 12% interest |
| Payment of Deficiency Tax | Same as filing deadline | 25% surcharge + 12% interest |
Step-by-Step Filing Process
Step 1: Gather Required Documents
For Employees
- • BIR Form 2316 (Certificate of Compensation Payment)
- • BIR Form 2307 (Certificate of Creditable Tax Withheld at Source)
- • Bank statements and passbooks
- • Receipts for additional income
- • Proof of additional deductions
For Self-Employed
- • Books of accounts
- • Official receipts and invoices
- • Bank statements
- • BIR Form 2307 (if any)
- • Business registration documents
Step 2: Calculate Your Taxable Income
Use our free Philippine tax calculator to determine your taxable income and tax liability:
Taxable Income Calculation
Step 3: Fill Out BIR Form 1700
Download the latest BIR Form 1700 from the BIR website and fill out the following sections:
Part I - Personal Information
- • Name, TIN, and address
- • Civil status and number of dependents
- • Contact information
Part II - Income Information
- • Gross compensation income
- • Other income (business, profession, etc.)
- • Total gross income
Part III - Deductions and Exemptions
- • Personal exemptions
- • Additional exemptions for dependents
- • Other deductions
Step 4: Calculate Tax Due
Apply the appropriate tax rates to your taxable income:
Tax Calculation
Step 5: File and Pay
Filing Options
- • Online through BIR eFPS
- • Authorized Agent Banks (AAB)
- • BIR Revenue District Office (RDO)
- • Accredited tax service providers
Payment Methods
- • Bank payment (over-the-counter)
- • Online banking
- • Credit/debit card
- • GCash/PayMaya
Common Filing Mistakes to Avoid
❌ Incorrect TIN or Personal Information
Double-check your TIN, name spelling, and address. Errors can cause processing delays or rejection of your return.
❌ Mathematical Errors
Always verify your calculations. Use our tax calculator to cross-check your computations.
❌ Missing or Incorrect Supporting Documents
Ensure all required attachments are included and properly filled out.
❌ Late Filing
File on time to avoid penalties and interest charges. Set reminders for important deadlines.
What Happens After Filing?
Post-Filing Process
Acknowledgment Receipt
You'll receive an acknowledgment receipt confirming your filing.
Processing
BIR processes your return and verifies the information provided.
Refund or Additional Payment
If you overpaid, you'll receive a refund. If you underpaid,you'll need to pay the difference.
Record Keeping
Keep copies of all filed returns and supporting documents for at least 3 years.
Calculate Your Tax Before Filing
Use our free Philippine tax calculator to ensure accurate calculations before filing your annual return.
Calculate My Tax Now