BIR Form 1700 is the Annual Income Tax Return for Individuals Earning Purely Compensation Income (including non-business or non-profession-related income). It is filed by employees whose only income is salary, wages, and similar compensation from their employer(s). The return reports the employee's total compensation, the income tax already withheld during the year, and any remaining tax due or refundable. It is filed on or before April 15 of the year following the taxable year.
Purpose & Legal Basis
BIR Form 1700 is the income tax return through which a purely-compensation taxpayer reconciles the tax withheld by the employer (reported on BIR Form 2316) against the actual annual tax due under the graduated income tax rates. The legal basis is found in the National Internal Revenue Code (NIRC) of 1997, as amended by the TRAIN Law (RA 10963), particularly Section 51 (Individual Returns), Section 24(A) (graduated income tax rates on individuals), and Section 79 (withholding on wages). The annual return ensures that the correct income tax is settled for the year and is the basis for any refund or balance due.
Who Must File
BIR Form 1700 is filed by individuals earning purely compensation income, specifically:
- Resident citizens earning compensation income from sources within and outside the Philippines
- Resident aliens and non-resident citizens earning compensation income from sources within the Philippines
- Employees who received compensation from two or more employers during the year (concurrently or successively)
- Employees whose income tax was not correctly withheld by the employer, or who are not qualified for substituted filing
Exception – substituted filing: An employee with only one employer for the entire year, whose tax was correctly withheld, and who is qualified for substituted filing under RR 11-2018, is no longer required to file Form 1700. For such employees, the employer-issued BIR Form 2316 serves as their income tax return. Self-employed individuals, professionals, and mixed-income earners do not use Form 1700 – they file Form 1701 or 1701-A.
When to File
BIR Form 1700 must be filed on or before April 15 of the year following the taxable year. For example, the return covering income earned in 2025 is due on or before April 15, 2026. If April 15 falls on a weekend or holiday, the deadline moves to the next working day. Any balance of tax due must be paid at the time of filing.
Line-by-Line Instructions
Header Section:
- Taxpayer Identification Number (TIN): Enter your 9-digit TIN (plus branch code) as registered with the BIR. This must match your BIR registration records.
- Taxpayer Name: Enter your full legal name (last name, first name, middle name) as registered with the BIR.
- Address: Provide your complete registered residential address including barangay, city/municipality, province, and ZIP code.
- Taxable Year: Indicate the calendar year being reported (e.g., 2025).
- RDO Code: Enter the code of the Revenue District Office where you are registered.
Part I – Total Tax Payable:
- Gross Compensation Income: Enter the total gross compensation (salaries, wages, bonuses, taxable allowances) received from all employers during the year, as shown on your BIR Form(s) 2316.
- Less: Non-Taxable / Exempt Compensation: Deduct mandatory SSS, PhilHealth, and Pag-IBIG contributions, the non-taxable portion of 13th month pay and other benefits (up to ₱90,000), and de minimis benefits.
- Taxable Compensation Income: The net of gross compensation less exempt items. This is the amount subject to the graduated income tax rates.
- Income Tax Due: Apply the graduated income tax table under Section 24(A). For 2023 onward, the first ₱250,000 of annual taxable income is taxed at 0%, with rates rising to 35% on taxable income over ₱8,000,000.
Part II – Tax Credits / Payments:
- Tax Withheld per BIR Form 2316: Enter the total income tax withheld by your employer(s) during the year, as shown on the Form(s) 2316 issued to you.
- Other Tax Credits / Prior Payments: Enter any tax paid in a previously filed return for the same year (if amending) or other creditable amounts.
Part III – Tax Still Due or Refundable:
- Tax Still Due: If the income tax due exceeds the tax withheld, the difference is the balance payable on or before April 15.
- Overpayment / Refund: If the tax withheld exceeds the income tax due, the excess may be refunded or carried over as a credit against the next year's tax.
Certification:
- Signature: The return must be signed by the taxpayer (or authorized representative). The signature certifies that the information provided is true, correct, and complete.
Common Filing Errors
- Filing when qualified for substituted filing: Employees with a single employer and correctly withheld tax should not file Form 1700; their 2316 already serves as the return.
- Omitting a second employer's compensation: If you had two or more employers during the year, you must consolidate all Forms 2316. Reporting only one understates income and tax.
- Wrong form for the income type: Using Form 1700 when you also have business or professional income. Mixed-income earners file Form 1701 (or 1701-A if purely business/profession).
- Incorrect treatment of 13th month pay: Only the amount above the ₱90,000 ceiling is taxable; do not tax the full benefit.
- Late Filing: Filing after April 15 incurs surcharge, interest, and a compromise penalty.
- TIN or name mismatch: Details must match your BIR registration to avoid processing delays.
Required Attachments
- BIR Form 2316 (Certificate of Compensation Payment / Tax Withheld) from each employer
- Proof of other tax credits or prior payments, if claimed
- Proof of payment of the balance of tax due, if any (bank validation or electronic payment confirmation)
- For non-resident citizens or aliens, supporting documentation of Philippine-source compensation
How to File
BIR Form 1700 may be filed using the following methods:
- eBIRForms (Online): Complete and submit Form 1700 through the BIR's eBIRForms package, then pay any balance due online or at an Authorized Agent Bank. This is the standard method for most individual taxpayers.
- eFPS (Electronic Filing and Payment System): Available to taxpayers enrolled in eFPS; integrates filing and payment in one transaction.
- Manual Filing: For taxpayers without tax due (no payment), file the printed return at the RDO where registered. Taxpayers with a balance due generally file electronically and pay through an AAB.
Ensure the return is filed and any tax paid on or before April 15. Electronic filing timestamps serve as proof of timely filing.
Penalties for Late Filing
Failure to file BIR Form 1700 or pay the tax due on time incurs the following penalties under the NIRC:
- Surcharge: 25% of the tax due for late filing or late payment (50% if the return is fraudulent).
- Interest: 12% per annum (the rate under the TRAIN Law) on any unpaid tax from the due date until paid.
- Compromise Penalty: A fixed compromise amount based on the tax due, in addition to surcharge and interest.
To avoid penalties, file and pay on or before April 15.
Example Scenario
Maria Santos – Two Employers in 2025:
Maria worked for Employer A from January to June 2025 and for Employer B from July to December 2025. Because she had two employers during the year, she is not qualified for substituted filing and must file BIR Form 1700.
- Gross compensation from Employer A: ₱360,000 (tax withheld: ₱22,500)
- Gross compensation from Employer B: ₱420,000 (tax withheld: ₱40,000)
- Total gross compensation: ₱780,000; total tax withheld per the two 2316 forms: ₱62,500
Maria consolidates both Forms 2316, computes her annual taxable income and the income tax due under the graduated rates, and compares it to the ₱62,500 already withheld. If the annual tax due is higher, she pays the difference on or before April 15, 2026; if it is lower, she claims the overpayment as a refund or carry-over. She files Form 1700 via eBIRForms and attaches both Forms 2316.