Tags: filing tax returns Philippines, how to pay taxes BIR, BIR eFPS guide, manual tax filing, online tax payments Philippines
Tax season in the Philippines doesn’t have to be stressful. Whether you’re a freelancer, small business owner, employee, or corporate taxpayer, understanding the various ways to file tax returns and pay your taxes can help you save time, avoid penalties, and stay compliant with the Bureau of Internal Revenue (BIR).
This guide breaks down the different methods available—manual and electronic—and helps you decide which one fits your situation best.
I. Understanding Your Tax Obligations
Before you file or pay anything, you need to understand what types of tax returns apply to you. In the Philippines, some common tax returns include:
- Income Tax Return (ITR): Filed annually (BIR Form 1700, 1701, or 1702)
- Quarterly Income Tax Return: (BIR Form 1701Q, 1702Q)
- Percentage Tax: (BIR Form 2551Q)
- Value-Added Tax (VAT): (BIR Form 2550M and 2550Q)
- Withholding Tax Returns: (BIR Forms 1601C, 1601EQ, 1601FQ)
- Expanded Withholding and Final Withholding Taxes
- Excise Tax, Donor's Tax, Estate Tax, etc.
Your status (individual or corporate), source of income, and business classification determine what forms and schedules you are required to comply with.
II. Different Ways to File Tax Returns
Let’s explore the available methods for filing your BIR tax returns:
1. Manual Filing (Over-the-Counter)
This is the traditional method. It involves downloading the form from the BIR website or securing one from the BIR office, filling it out manually, and submitting it directly to the RDO (Revenue District Office) or Authorized Agent Banks (AABs).
Steps:
- Download and print the applicable BIR Form
- Fill it out by hand
- Bring it to your RDO or AAB for submission and payment
When to Use This:
- Taxpayer is not mandated to use electronic filing
- No stable internet access
- Not registered under eFPS or eBIRForms
Drawbacks:
- Time-consuming
- Risk of long queues
- Higher chances of human error
2. eBIRForms (Offline e-Submission)
The eBIRForms system is an offline application provided by the BIR, where you can encode, validate, and generate your tax returns on your computer.
Steps:
- Download the latest eBIRForms Package from www.bir.gov.ph
- Fill out the applicable form
- Submit it online through the eBIRForms submission platform
When to Use This:
- Taxpayers not enrolled in the Electronic Filing and Payment System (eFPS)
- Non-VAT individuals or businesses not required to use eFPS
- Employees filing ITRs
Advantages:
- Avoid manual computation errors
- Quick validation and online submission
- Get confirmation via email
Limitations:
- Still need to pay through a separate channel (bank, GCash, etc.)
3. eFPS (Electronic Filing and Payment System)
eFPS is the BIR’s online platform that allows large taxpayers, accredited importers, and specific business sectors to file and pay taxes online.
Steps:
- Enroll in eFPS via the BIR website
- Use your login credentials to access the dashboard
- File your returns and pay online
Who is Required to Use eFPS:
- Large taxpayers
- Top 20,000 private corporations
- Government offices
- Insurance companies
- Those mandated under BIR Revenue Regulations
Advantages:
- All-in-one platform for filing and paying
- Secure and fast transactions
- Real-time validation and confirmation
Things to Note:
- You need an accredited bank account with an eFPS partner bank
- Some taxpayers need to file returns earlier than those filing manually
III. Methods of Tax Payment
Once you’ve filed your return, you need to settle your tax liability. Here are your payment options:
1. Authorized Agent Banks (AABs)
If you're filing manually, you can pay through banks accredited by the BIR in your RDO. You’ll be given an official receipt and machine-validated form.
Required Documents:
- Accomplished BIR Form
- Payment
- Identification documents if applicable
Limitation: Only specific banks cater to specific RDOs.
2. GCash
GCash now offers convenient payment of BIR taxes directly through the app.
Steps:
- Open GCash > Pay Bills > Government > BIR
- Select Form Series and Form Number
- Enter Tax Type Code and Amount
- Complete details and confirm payment
Advantages:
- No need to visit the bank
- 24/7 access
- Real-time confirmation
Reminders:
- Double-check the Tax Type and Form Code
- Screenshot your payment confirmation for reference
3. PayMaya
Like GCash, PayMaya allows taxpayers to pay using mobile wallets.
Steps:
- Go to Bills > Government > BIR
- Follow similar input process as with GCash
Convenience: Best for freelancers and microbusinesses
4. LandBank Link.Biz Portal
The LandBank online payment facility is another option, especially for those with government-related transactions.
Steps:
- Visit https://www.lbp-eservices.com
- Choose BIR from the list
- Provide the form and tax information
- Use a LandBank account or partner card for payment
5. Development Bank of the Philippines (DBP PayTax Online)
DBP’s platform also supports tax payments.
Advantages:
- Reliable for taxpayers with DBP accounts
- Expands payment channel options for provinces
6. Credit Card Payments via BIR Accredited Payment Gateways
Some payment gateways now accept credit card payments for taxes. These include:
- MyEG
- UnionBank
- Other fintech platforms
Fees may apply, but it’s helpful for those needing short-term liquidity.
IV. Deadlines You Should Never Miss
Each form and tax type has its own deadline. Missing these could mean hefty surcharges (25%), interest (12% p.a.), and compromise penalties.
Here are some of the important deadlines:
Each type of tax return comes with a corresponding deadline. For example, individual income tax returns are generally due on April 15 of each year. Corporations that follow a calendar year also file their annual income tax returns on or before April 15, but those using a fiscal year must file on or before the 15th day of the fourth month following the close of their fiscal year.
Quarterly income tax returns are typically due 45 days after the end of each quarter, while VAT returns are filed monthly and quarterly, with deadlines falling on the 20th day following the end of each period. Percentage tax returns are due on the 25th day after each taxable quarter, and withholding tax returns are commonly due on the 10th or 15th of the following month.
Tip: Always double-check BIR Revenue Memorandum Circulars (RMCs) for deadline changes.
V. Common Mistakes to Avoid
- Wrong Form Series: Using the wrong form may cause your return to be invalid.
- Mismatched TIN and RDO Code: Be sure your TIN matches the jurisdiction.
- Underpayment: Leads to interest and penalties.
- Late Filing and Payment: Avoid the rush and file early.
- Ignoring Email Confirmation: Always verify that your return was received and validated.
VI. Taxpayer Tips: Maximize Convenience and Compliance
- Enroll in eFPS or eBIRForms early – Don't wait until deadlines.
- Keep soft and hard copies of filed returns and payments.
- Register and update your contact details with the BIR to receive important advisories.
- Consult a tax professional or CPA for complex filings or tax planning.
- Check BIR updates – The BIR regularly issues RMCs and RR changes.
Conclusion: File Smart, Pay Right
Filing and paying taxes in the Philippines no longer has to be a chore. With multiple digital and traditional options available, every taxpayer—big or small—has access to convenient and compliant ways to fulfill their obligations. Choose the method that fits your lifestyle and business operations. The key is to be aware, accurate, and on time.
With the right tools, updated knowledge, and a bit of preparation, tax season can be just another day in your financial calendar.
0 Comments