Tax & BIR 9 min read · Updated

Income Tax Return (ITR) Philippines 2026: Who Files, Which Form and When

Quick answer: Most employees with one employer and correctly withheld tax do not file an income tax return, because the employer’s filing of the certified list and your signed BIR Form 2316 count as filing (substituted filing). Self-employed people, professionals, mixed-income earners and employees with two or more employers must file, using Form 1700, 1701 or 1701A, by April 15. Compute your tax first →

This page is about filing obligations. For the certificate your employer gives you, read the BIR Form 2316 guide.

ITR versus Form 2316: what is the difference?

People often search for “ITR” when they really need their Form 2316. They are different documents.

BIR Form 2316Annual ITR (1700, 1701, 1701A)
What it isCertificate of Compensation Payment / Tax WithheldThe actual annual income tax return
Who prepares itYour employerYou (or your accountant)
Who needs itEvery employee, for loans, visas, a new employerThose not covered by substituted filing, and the self-employed
DeadlineEmployer gives it to you by January 31April 15

If you need the paper your bank or embassy asks for, that is the Form 2316. See how to read and get your BIR Form 2316.

Do you need to file? Substituted filing explained

Under Revenue Regulations 11-2018, an individual receiving purely compensation income, regardless of amount, from only one employer in the Philippines for the calendar year, whose tax has been withheld correctly (tax due equals tax withheld), is not required to file Form 1700. The employer’s certified list of employees qualified for substituted filing, stamped received by the BIR, is treated as the employee’s return. You show you want it by signing Form 2316.

You must still file if you are

Which BIR form do I use?

Your situationAnnual form
Employee, one employer, correctly withheldNone (substituted filing, Form 2316)
Employee with two or more employers, or incorrect withholding1700
Self-employed or professional using the 8% option or the 40% optional standard deduction1701A
Self-employed or professional itemizing deductions1701
Mixed-income earner (salary plus business or professional income)1701
Quarterly returns for the self-employed and mixed-income earners1701Q

For taxable year 2025 the BIR also made available Form 1701-MS for micro and small individual taxpayers (see RMC 20-2026 and RMC 37-2026). Medium and large taxpayers use 1701 or 1701A and must file electronically. Check the BIR’s current circular for your classification.

Deadlines

Filing or paying late can trigger a surcharge (generally 25%), interest and a compromise penalty, so file on time even when no tax is due. Lower rates apply to micro and small taxpayers under the EOPT Act.

How to file

  1. Know your numbers. Add up your income and tax withheld, and estimate the tax with the Income Tax Calculator. Freelancers can compare graduated rates with the 8% option.
  2. Gather documents. Form 2316 from every employer, Form 2307 from clients who withheld tax on your fees, official receipts and, for the 8% option, proof you elected it in your first quarter. See expanded withholding tax.
  3. Prepare the return. Most individuals use the free Offline eBIRForms Package; taxpayers enrolled in eFPS file there. Choose the right form from the table.
  4. Submit electronically and keep the confirmation email.
  5. Pay any tax due through an authorized agent bank or a BIR-accredited online payment channel, by the deadline.
  6. Keep records such as the filed return, confirmation, Form 2316 and receipts for at least three years.

New taxpayers register with their Revenue District Office first (self-employed and mixed-income earners use Form 1901) and get a TIN. Employees receive a TIN through their employer at the start of work.

Worked examples

Example 1: single employer, ₱30,000 a month. Annual taxable pay ₱330,600, tax ₱12,090, withheld ₱12,090. You are covered by substituted filing. Sign your Form 2316 and keep it.

Example 2: two employers. ₱30,000 a month at Company A until June and at Company B from July. Without your old Form 2316, Company B undercounts your income and may refund its withholding. You are not qualified for substituted filing and must file Form 1700 by April 15 with both certificates and pay the shortfall. See tax refund in the Philippines.

Example 3: freelancer with ₱600,000 in receipts. Choose the 8% option in the first quarter: tax is 8% × (₱600,000 − ₱250,000) = ₱28,000, against ₱62,500 under graduated rates with no deductions. File 1701Q in May, August and November, then Form 1701A by April 15.

Example 4: salary plus a sideline. ₱40,000 a month salary plus ₱200,000 of freelance income. You are a mixed-income earner: Form 1701 and quarterly 1701Q for the sideline. The 8% option is possible on the sideline, but the ₱250,000 deduction is not available because your salary already uses it.

If too much was withheld

If your employer over-withheld, the excess is normally returned in the December year-end adjustment. See the tax refund guide, or estimate it with the Withholding Tax Calculator.

Source: Bureau of Internal Revenue (BIR), Revenue Regulations No. 11-2018 (Sec. 2.83.1 and 2.83.4) and RMC 30-2026 (2025 deadline extension). Last checked 17 October 2026. Procedures and deadlines can change; confirm on the BIR website or with a tax professional. For guidance only.

Know your tax before you file.

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Frequently Asked Questions

Who needs to file an income tax return in the Philippines?
Self-employed individuals and professionals, mixed-income earners (salary plus business or professional income), employees with two or more employers in the year, and employees whose tax was not correctly withheld must file. An employee with one employer for the whole year and correctly withheld tax is covered by substituted filing.
What is substituted filing?
Substituted filing means your employer's filing of the certified list of qualified employees with the BIR stands in for your own annual return. It applies if you earn only compensation income, from one employer in the Philippines for the whole year, and your tax due equals the tax withheld. You sign your BIR Form 2316 to avail of it.
What is the deadline for filing the annual income tax return?
The annual return for individuals is due on April 15 of the following year, so income earned in 2026 is filed by April 15, 2027. For taxable year 2025 only, the BIR extended the deadline to May 15, 2026 through RMC 30-2026. Self-employed taxpayers also file quarterly returns during the year.
Is the ITR the same as BIR Form 2316?
No. For an employee, Form 2316 is the certificate your employer gives showing your compensation and tax withheld, and it is what people often call their ITR when substituted filing applies. A true annual income tax return is Form 1700, 1701 or 1701A, filed by those who are not qualified for substituted filing.
Which BIR form do I use: 1700, 1701 or 1701A?
Use 1700 if you earn only compensation but are not qualified for substituted filing, such as having two employers. Use 1701A if you are self-employed using the 8% option or the optional standard deduction, and 1701 if you have mixed income or itemize your deductions.
Do I need to file if I earn ₱250,000 or less?
Employees with only compensation income and nothing owed generally rely on their employer and Form 2316. Self-employed individuals and professionals still register and file even if the tax due is zero, and a freelancer who chose the 8% option declares it in the quarterly returns.
Can I file my income tax return online?
Yes. Most individuals prepare the return with the BIR's Offline eBIRForms Package and submit it electronically, while taxpayers enrolled in eFPS file there. Tax due is paid through authorized agent banks or BIR-accredited online payment channels.

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