How to File Your BIR form 1702Q also known as Quarterly Income Tax Returns

Operating a business is a challenging process. You are not only dealing with the everyday operations of the business activities but as well as dealing with the proper regulatory compliance – one of this is the Quarterly Income Tax filing.

BIR Form 1702Q is a form for Quarterly filing for Industry other than Individual taxpayers (e.g., Partnerships and Corporations).

The image is an example of the form.

Here are some tips in filing for your Quarterly Income Tax:

This is normally found on the BIR form 2303 (also known as the certificate of registration) which indicates what type of tax you are required to file.

Common mistakes: Sometimes, if the taxpayer sees the “Income tax” legend, he/she assumes that it should be filed ANNUALLY. But base on BIR Revenue Regulation, it is still to be filed on a quarterly and as well as on an annual basis.

You must keep an eye on the important details in filling up the form, or you will not report it properly and probably be assessed by the BIR in some cases as necessary. It is much better if you hire a competent bookkeeper or outsourced it to an accounting/auditing firm.

There are different ways on how to file for the quarterly income tax namely:

This is where you go to your nearest RDO (Revenue District Office) and ask for a copy of BIR form 1702Q and file it manually. You can also download the file just like the image presented above.

Is an application from the BIR that gives the taxpayer the option to file their income taxes electronically. It is an offline version of filing but once you finish filling up everything, you still have to submit it online through the application itself. All you need is an internet connection. After submitting, you pay your tax through any AABs (Authorized Agent Banks)

Please take note that BIR is transitioning to using electronic filing and using manual filing is gradually disregarded.

For partnerships and corporations, the deadline is 60 days after the end of the taxable quarter. SO, for the quarter ending September 30, 2019, the deadline will be on the 29th of November 2019.

It is advisable to compile all your receipts and invoices “chronologically” to summarize the income/expense related accounts easily. Also, the receipts should be the “Official Receipts” that shows the following:

Note: Expense deduction is not applicable if the following are presented as supporting documents.

This is the time you assess on what kind of tax regime are you applying for your tax compliance because there are several ways on how to compute for the income tax and with the proper tax advice, you may choose the lesser expense for the processing. This is one way of minimizing the tax expense (not tax evasion) to save your money upon choosing the best possible option.

Another tax process is also known as SAWT (Summary Alphalist of Withholding Tax Agents). This is a summary list that is attached and to is submitted through BIR (Bureau of Internal Revenue) either quarterly, or annually, depending on the form that is associated with it, like the 1702Q/1702.

TIP: Always compile your creditable withholding taxes (BIR form 2307) to claim correspondingly for creditable income tax. It is much better if still be arranged chronologically or every quarter for simple extraction of information upon filing for SAWT.