BIR Form No. 1701 Practice Flashcards

Historical and technical vocabulary terms derived from the BIR Form No. 1701 for Philippine individual income tax returns, including tax codes, deadlines, and calculation methods.

BIR Form No. 1701

The Annual Income Tax Return for Individuals (including MIXED Income Earner), Estates and Trusts.

ATC II011

Alphanumeric Tax Code used for Compensation Income.

ATC II012

Alphanumeric Tax Code used for Business Income-Graduated IT Rates.

ATC II013

Alphanumeric Tax Code used for Mixed Income–Graduated IT Rates.

ATC II015

Alphanumeric Tax Code used for Business Income - $8\%$ IT Rate.

ATC II017

Alphanumeric Tax Code used for Income from Profession – $8\%$ IT Rate.

Optional Standard Deduction (OSD)

A method of deduction representing $40\%$ of Gross Sales/Receipts/Revenues/Fees under Sec. 34(L) of the NIRC.

$8\%$ IT Rate Eligibility

Available if gross sales/receipts and other non-operating income do not exceed Three million pesos ($P3,000,000$).

October 15

The deadline for the portion of Tax Payable allowed for the 2nd installment ($50\%$ or less of Item 22).

Irrevocable Overpayment Options

Choices to be refunded, to be issued a Tax Credit Certificate (TCC), or to be carried over as a tax credit for next year/quarter.

Data Privacy Act of 2012

Republic Act No. $10173$, mentioned in the taxpayer consent section.

NOLCO

Net Operating Loss Carry Over.

BIR Form No. 2307

Certificate used for Creditable Tax Withheld for the 4th Quarter.

BIR Form No. 2316

Certificate used for Creditable Tax Withheld from compensation income.

Ordinary Allowable Itemized Deductions

Expenses listed in Schedule 4 including Amortizations, Bad Debts, Depletion, Depreciation, and Pension Trusts.

Tax Table 1 (2018-2022) Max Bracket

For taxable income over $P8,000,000$, the tax due is $P2,410,000 + 35\%$ of the excess over $P8,000,000$.

Tax Table 2 (2023 onwards) Max Bracket

For taxable income over $P8,000,000$, the tax due is $P2,202,500 + 35\%$ of the excess over $P8,000,000$.

Short Period Return

A specific type of return designated in Item 3 for tax periods shorter than a full year.

General Professional Partnership (GPP)

Entities mentioned in Schedule 3.A Item 21 regarding amount received/share in income by a partner.