RR No. 2-2011: Prescribes the filing of Income Tax Return and/or Annual Information Return by individuals, including estates and trusts

Key points

1. ITR with AIR. Starting with taxable year 2010, individuals, estates and trusts required to file an ITR file it together with the AIR (BIR Form No. 1705). The AIR includes income subject to final withholding tax and exclusions from gross income under Section 32(B) of the Tax Code, as amended. Individuals not required to file, or qualified for substituted filing, may file an ITR with an AIR for loans, foreign travel and similar purposes.
2. Who must file the AIR. These include individuals with pure compensation income from Philippine sources, tax correctly withheld under Section 79, and annual taxable income exceeding Php 500,000.00, but an individual with concurrent compensation from two or more employers files an ITR. They also include individuals, estates and trusts whose sole income bore final withholding tax under Section 57 (A) with aggregate final tax withheld exceeding Php 125,000.00 annually, and individuals whose sole income is exempt and exceeds Php 500,000.00 a year.
3. Where and when. The ITR (BIR Form Nos. 1700 or 1701) and/or AIR is filed in triplicate with the RDO where the filer registers or has legal residence or place of business, on or before April 15 of each year for the preceding taxable year. An AIR filed alone under Section 4 of the Regulations is due on or before May 15.
4. Manner of filing. The AIR is attached to the ITR, filed manually in hard copy until electronic filing is available in eFPS. Individuals already using eFPS keep e-filing the ITR, and submit the hard copy of the e-filed return with the AIR to the RDO within 10 days from the electronic filing.
5. Coverage period. Attaching the AIR to the ITR covers income earned for taxable year 2010, or until its details are integrated in the enhanced version of BIR Form No. 1700 or 1701.

Who is affected

• Individual citizens, resident aliens and non-resident aliens engaged in trade or business
• Estates and trusts
• Compensation earners with annual taxable income exceeding Php 500,000.00

Deadlines and effectivity

• ITR and AIR: on or before April 15
• AIR only: on or before May 15
• Hard copy for eFPS filers: within 10 days from electronic filing
• Applies starting taxable year 2010