BIR Form 1701, 1701A or 1701-MS: your annual income tax return

When Form 1701 is due

BIR states that the annual income tax return is filed on or before 15 April of each year, covering the previous calendar year. Your 2026 income is reported by 15 April 2027.^[1]

When the tax due exceeds ₱2,000, you may elect to pay it in two equal installments: the first with the return by April 15 and the second on or before October 15.^[1]

Which form do I file?

BIR's guidance for 2025 returns, filed in 2026, sets out three annual returns for individuals. Form 1701 is for individuals in business or a profession, including mixed-income earners, with one or more income tax rates. Form 1701A is for those earning purely from business or a profession who are on 8%, or on graduated rates with the optional standard deduction. Form 1701-MS is a simplified two-page return for micro and small taxpayers with a single income tax rate on business income.^[6]

Micro and small taxpayers may file any of the three, whatever form type their Certificate of Registration (COR) shows, and they do not need to update the COR to use 1701-MS. If they already filed 1701 or 1701A and paid, they do not file 1701-MS as well. Medium and large taxpayers file 1701 or 1701A electronically.^[5,6]

Form 1701-MS is not yet in eFPS or eBIRForms. You download the fillable form from the BIR website and print three copies, or ask for three copies at any RDO, then file it by hand: at an authorized agent bank if you have tax to pay, or at your RDO if you have none.^[5,6]

Your size class (micro, small, medium or large) is set when you register; see taxpayer classification. BIR issues new filing guidance each year, so check the circular for the year you are filing.

Which tax table applies now

If you did not elect 8% for the year, you are taxed at the graduated rates. Since 1 January 2023 the schedule in Section 24(A)(2)(a) of the Tax Code, as amended by the TRAIN law, is:^[2,4]

BIR's own income tax page still shows the older 2018 to 2022 table, which charged 20% on income just above ₱250,000. Use the 2023 schedule for 2023 income onward.

• Not over ₱250,000: 0%
• Over ₱250,000 to ₱400,000: 15% of the excess over ₱250,000
• Over ₱400,000 to ₱800,000: ₱22,500 + 20% of the excess over ₱400,000
• Over ₱800,000 to ₱2,000,000: ₱102,500 + 25% of the excess over ₱800,000
• Over ₱2,000,000 to ₱8,000,000: ₱402,500 + 30% of the excess over ₱2,000,000
• Over ₱8,000,000: ₱2,202,500 + 35% of the excess over ₱8,000,000

Worked examples

Example: a carinderia owner in Pampanga on graduated rates has ₱1,100,000 in sales and ₱750,000 in expenses in 2026, so taxable income is ₱350,000. Tax is 15% of the excess over ₱250,000: 15% × ₱100,000 = ₱15,000. Because it is over ₱2,000, she may pay ₱7,500 by 15 April 2027 and ₱7,500 by 15 October 2027. Because she itemizes expenses on graduated rates, she files Form 1701, or 1701-MS if she is a micro or small taxpayer.^[2,1,6]

Example: a freelance video editor on 8% earned ₱1,250,000 in gross receipts and has no salary or other income. Annual tax is (₱1,250,000 − ₱250,000) × 8% = ₱80,000, less what was already paid with the three 1701Q returns. As a purely self-employed 8% taxpayer, he can file Form 1701A, or 1701-MS if he is a micro or small taxpayer. If he also had a salary, the 8% would be on the full ₱1,250,000 with no ₱250,000 reduction, and he would file Form 1701 or 1701-MS.^[4,6]

Quarterly payments you made during the year are credited in the annual return, so the April payment is usually only the balance. Keep every 1701Q confirmation together with your books so you can enter them correctly.

Filing the return

Under RR 4-2024, returns are filed electronically on any available platform, with manual filing allowed only when platforms are unavailable, and the 25% penalty for filing with the wrong revenue officer is no longer imposed. BIR's 2026 guidance says Forms 1701 and 1701A must be filed through eBIRForms, eFPS or an accredited tax software provider, while micro and small taxpayers may file 1701-MS manually.^[3,6]

1. Close your books for the yearTotal sales, expenses and quarterly taxes paid from your journal and ledger.
2. Gather certificatesCollect any certificates of tax withheld by customers, platforms or your employer if you have mixed income.
3. Fill in the returnUse the form that fits you (see the table). Use the tax rate you elected for that year.
4. File and payFile 1701 or 1701A online, or 1701-MS on paper, then pay the full balance or the first installment by April 15.

Which form do I file?

Questions people ask

Can I file 1701-MS if my COR says 1701 or 1701A?

Yes, if you are a micro or small taxpayer. BIR says micro and small taxpayers may file any of the three forms whatever form type the COR shows, and they do not need to update the COR to use 1701-MS.

When is the 2026 annual income tax return due?

On or before 15 April 2027, following BIR's rule that the annual return is due on April 15 of each year. If a deadline falls on a weekend or holiday, BIR usually moves it; check BIR's announcements.

Can I pay my annual income tax in installments?

Yes, if the tax due exceeds ₱2,000. You pay in two equal installments, the second on or before October 15.

Do I need to file if my income was below ₱250,000?

Your income tax at graduated rates would be zero, but your COR still lists income tax. Ask your RDO or accountant how to file a return showing no tax due.

Is the 2018 tax table still valid?

No. The schedule for 2023 onward applies, with 15% on taxable income over ₱250,000 up to ₱400,000.