With the deadline for annual income tax returns less than a month away, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. urged all self-employed individuals and online sellers to file their annual income tax returns, and provided tips to ensure that their returns are filed correctly and on time.
In a video posted in his official Facebook Page, the BIR chief, speaking in Filipino, pointed out that “for fellow citizens engaged in online selling who are registered with the BIR, you are required to file your Annual Income Tax Return using BIR Form 1701.”
Fueled by stronger enforcement, digital innovation, and improved taxpayer services, the agency collected a record ₱2.852 trillion in 2024—surpassing its ₱2.848 trillion target and marking a 13% jump from the previous year’s revenues.
As for those operating a sole proprietorship—where the business is registered under an individual’s name rather than a corporation—Lumagui said the appropriate tax return to use is also BIR Form 1701.
According to the Commissioner, those whose annual sales exceed ₱3 million must also submit an Auditor’s Report and Financial Statements prepared and signed by an external auditor accredited by the BIR.
He said that “this ensures transparency, accuracy, and compliance with tax rules for businesses that have grown beyond the VAT threshold.”
Taxpayers who have received BIR Form 2307, or the Certificate of Creditable Tax Withheld at Source, are also reminded to attach it to their Form 1701 as proof of tax credits applied to their income tax due.
The reminders from Lumagui follow a month after the BIR launched its Friendly Tax Compliance Verification Drive (TCVD), a nationwide initiative launched in celebration of Tax Awareness Month.
Aimed at fostering voluntary compliance by making tax rules more understandable and accessible, the TCVD has reached tens of thousands of business owners. On its first day alone, more than 24,000 establishments across the Philippines were visited as part of the drive.
At the launch of the campaign, Lumagui stressed that the BIR is “here to educate our taxpayers, not to penalize them. Education leads to compliance. Improved services lead to compliance.”
Fueled by stronger enforcement, digital innovation, and improved taxpayer services, the agency collected a record ₱2.852 trillion in 2024—surpassing its ₱2.848 trillion target and marking a 13% jump from the previous year’s revenues.
