BIR: Last day today to file income taxes

Today is the last day for filing of income tax returns (ITRs) and the Bureau of Internal Revenue (BIR) is urging the public to promptly pay their taxes to avoid penalties.

BIR Commissioner Guillermo Parayno, however, observed yesterday that this year’s filing season was more orderly and convenient for taxpayers not covered by the existing "substituted filing" system.

Many taxpayers also apparently avoided the deadline rush by filing their ITRs with authorized agent banks of the BIR before the Holy Week.

The "substituted filing" system was believed to have significantly reduced the number of tax filers in the country since it no longer requires those covered by it to file their ITRs.

The system covers ITRs of payees receiving purely compensation income from only one employer for one taxable year, whose tax due is equal to tax withheld. It also covers individual payees whose compensation income is subject to the final withholding tax, the BIR said.

The "substituted filing" system was prescribed and implemented by the bureau two years ago in line with its computerization program.

"For purposes of informing the taxpaying public, under the law persons earning P100,000 and below are still required to file their ITRs unless they fall within the purview of the Tax Code for non-filing or they comply with the conditions of substituted filing," Parayno said.

Marginal income earners, he said, who are earning P100,000 and below, who are not salaried employees but self-employed, and those deriving gross sales/receipts during any 12-month period are also not exempt from the filing of ITRs and payment of income tax.

"They are exempt only from the payment of the registration fee and business tax, issuance of receipts and invoices, keeping of books of accounts and filing of financial statements," Parayno said.

Parayno said there are around 22 commercial and universal banks with at least 1,567 branches nationwide that are ready to accommodate the taxpaying public for the filing of their ITRs.

The BIR’s authorized agent banks include Allied Bank, Banco de Oro, Bank of America, Bank of Commerce, Bank of the Philippine Islands, China Bank, Development Bank of the Philippines, Equitable-PCI, International Exchange Bank, Land Bank of the Philippines, Metrobank, Philippine Bank of Communications, Philippine National Bank, Philippine Veterans Bank, Philtrust Co., Prudential Bank, RCBC, Security Bank, Standard Chartered Bank, Union Bank, UCPB, and United Overseas Bank (Westmont).

Parayno said taxpayers must file their ITRs and settle their tax dues with the authorized agent banks within the jurisdiction of the revenue district office where they are registered.

He warned that failure to file today the ITRs with payments will face a penalty of 25 percent surcharge ad interest rate of 20 percent per year, and in some cases, a surcharge of 50 percent of the tax or of the deficiency tax will be imposed.