RMC No. 17-2019: Prescribes the new BIR Form No. 1701A – Annual Income Tax Return for Individuals Earning Income purely from Business/Profession (those under the graduated Income Tax rates with Optional Standard Deduction as mode of deductions or those who opted to avail of the 8% flat Income Tax rate) January 2018 version

Key points

1. Who files it. Individuals whose income is purely from business or profession, under graduated income tax rates with Optional Standard Deduction (OSD) as the mode of deduction, or who opted for the 8% flat income tax rate.
2. Tax rate choice. The form offers graduated rates with OSD, or 8% in lieu of graduated rates under Sec. 24(A) and Percentage Tax under Sec. 116 of the NIRC. The 8% option is available if gross sales/receipts and other non-operating income do not exceed Three million pesos (P3M).
3. ATCs on the form. II012 Business Income (Graduated IT Rates), II014 Income from Profession (Graduated IT Rates), II015 Business Income (8% IT Rate) and II017 Income from Profession (8% IT Rate).
4. Filing and tax credits. Two copies are filed with the BIR and one is kept by the filer. Tax credits and payments include creditable tax withheld per BIR Form No. 2307 and tax paid in a previously filed return if the return is amended.

Who is affected

• Individuals earning income purely from business or profession
• Taxpayers who opted for the 8% flat income tax rate