Income tax is the responsibility of resident citizens, non-resident aliens, and resident aliens. In the Philippines, individuals who violate the rules will get a penalty, while obedient individuals can get an income tax refund Philippines if they pay one that is not due to them.
This article will provide all the necessary information about this issue.
Table of Contents
Who Are Qualified For Income Tax Refund Philippines?
Only taxpayers can claim an income tax refund Philippines. The taxpayers are individuals whose income comes from pure compensation, pure trade/ business, the practice of a profession, and mixed income.
However, income’s origin also defines whether a person is a taxpayer. Resident citizens are automatically taxpayers, no matter where their revenue comes from. Non-resident citizens and aliens must pay taxes for their income within the Philippines.
The amount of annual income will affect one’s tax rate. Individuals whose yearly earnings are less than P250,000 must not pay any tax. In this case, this group doesn’t need to claim an income tax refund.
A trustee of a trust, a guardian of a minor, or an administrator of an estate will receive a tax refund on behalf of a trust, a minor, or an administrator with income sources within the Philippines.
How To Apply Income Tax Refund Claims?
Taxpayers can choose online and offline methods to apply for income tax refunds Philippines.
Taxpayers must go to the nearest Revenue District Office or Tax Filing Center for the offline option. Beforehand, taxpayers must prepare their BIR form at home and bring it to the Office/ Center.
For the online option, taxpayers follow these steps:
Step 1: Visit bir.gov.ph/index.php/eservices/ebirforms.html
Step 2: Download the form
The site provides all e-forms issued by BIR. Individual taxpayers must choose the right form.
- The 1700 BIR form is for taxpayers whose income comes from pure compensation;
- The 1701 BIR form is for taxpayers whose income comes from business/ trade/ profession, estates, and trusts;
- The 1701Q BIR form is for quarterly tax income returns.
Step 3: Accomplish the form
It is a must to double-check all the information after finishing it.
Step 4: Submit the form
To submit the form, taxpayers must visit the official website of BIR at https://bir.gove.ph, then choose BIR eServices and send it.
Afterward, they can track the status effortlessly.
When the process is finished, BIR will disburse the money to the bank account of the Revenue District Office. Taxpayers will receive their money via bank account or at the office.
Due Date To Claim Income Tax Refund
There are two due dates to claim an income tax refund: annually and quarterly. The latter applies to all taxpayers, while the former doesn’t apply to a trustee of a trust, a guardian of a minor, or an administrator of an estate.
For the annual option, BIR stops receiving an income tax refund Philippines claim on April 15 of every year. They must fill out the previous taxable year information.
On the other hand, the quarterly tax refund is for the current taxable year. The taxpayers must fill out form No.1701Q and submit it to BIR on or before May 15 for the first quarter, August 15 for the second, and November 15 for the third.
How Can You Check Your Income Tax Refund Status?
Via TIN NSDL Website
Go to the link: tin.tin.nssdl.com/oltas/refund-status-pan.html. At this site, you don’t have to log into the system. Enter your PAN and choose the year you want to check.
If your income tax refund form were processed, it would show the results. On the other hand, if it hasn’t been accepted yet, the site will notify you with a “not determined” message.
Via E-Filing Website
The Philippines offer an online website (eportal.incometax.gov.in) for people to file and track income tax refunds and their status.
First, you have to create an account. It only takes a few minutes. You must provide your PAN and Aadhaar numbers. When your AccountAccount is ready, log into the system.
Afterward, go to the e-file on the menu. Taxpayers will find a tab named “Income tax returns.” Hover over the tab; there will be a drop-down with an option called “view tax returns.” On this page, all the tax records are saved with their status.
If you submitted the forms at the office of BIR, your records would not be here. You must find the “Your filed forms” tab where your documents are saved.
FAQs
Where Can I Get My Income Tax Refund?
There are two ways to collect your income tax refund. You can visit the Revenue District Office or Tax Filing Center.
Another way is via a bank account. When you fill out the forms, you must provide your bank account information. When your ITR form has proceeded, the Office/ Center will send it directly to your AccountAccount.
What Happens If I Don’t Pay Income Tax In The Philippines?
It’s a must to pay income tax in the Philippines. You don’t have to pay any tax if you have an annual income of less than P250,000. When you earn more than that amount, you must pay income tax according to the tax table 2023.
In case you don’t fulfill your tax responsibility, the government will assess and collect unpaid amounts and a 20% interest annually. Consequently, the more you owe, the more you must pay.
How Many Days Will The Tax Refund Philippines Take?
According to the Bureau of Internal Revenue (BIR), processing the income tax refund takes about 90 days. This rule has been applied since 2018 when TRAIN was enacted.
However, BIR may not reply in the event that it cannot process the taxpayers’ forms.
Conclusion
Taxpayers must file ITR forms before April 15 annually to get a tax refund Philippines. Those who earn their living by self-employed, estates, and trusts must file quarter forms on May 15, August 15, and November 15.
There are two options to file the forms: online and offline. It takes a maximum of 90 days to proceed with the forms.
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See also: Estate Tax Philippines – Everything you need to know
