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Procedures in accomplishing the BIR Form No. 1702
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Steps
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Hint:
Use tab to move to the next enterable field |
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1
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The tax type year is automatically reflected in Item 1 based on your registration (Item 1 "For the Calendar/Fiscal").
This field will remain editable to allow short period filing. |
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2
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Indicate
the filing date of the Tax Return. (Item 2 "For the year (MM/YYYY)").
This will only be enabled if short period return is selected. |
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3
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Item 3, Amended Return, will be automatically populated by data to indicate if the filing is an amendment or no. |
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4
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Indicate
the number of sheets attached (Item 4 "No.
of sheets attached") |
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5
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Click
"5" to retrieve the alphanumeric tax codes their corresponding
industry classification and tax rate. |
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6
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For
"Are there payees availing of tax relief under Special Law or International
Treaty? (Item 12A)", select 'Yes' or 'No'. |
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7
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If the selected option in Item 12A is "Yes", Item 12B is enabled
and populated with "Special Law" and "International Treaty"
values. Taxpayer is required to choose either of the two. |
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8
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If the selected option in Item 12A is "No", Item 12B is disabled
with no selected value. |
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9
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The following are
entry fields that are set to 0 during validation process if left empty:
14A, 15A, 17A, 20B. Otherwise,
the supplied value must be a monetary value and must not be less than
0.
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10
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To set the values
for Items 14B and 14C, click any of the two links or the Schedule 1.
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11
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To set the values
for Items 15B and 15C, click any of the two links or Schedule 2/3.
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12
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To set the values
for Items 17B and 17C, click any of the two links or the Schedule 4 link.
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13
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To set the values
for Items 19A, 19B and 19C, click any of the three links or Schedule D.
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14
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To
set Item 24, click the link to display the Section B page. |
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15
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To set Item 25B, click the link to display Section C page. |
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16
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Section
E consists of the following entry fields :
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Special
and Regular Rate Net Income or Loss per books accepts numeric values
only. |
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Description
fields for the following: Non-Deductible Expenses or Other Taxable
Income, Non-Taxable Income and Income Subjected to Final Tax, Special
Deductions, accept free text entries. The page can accept a maximum
of 5 records for each section. |
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Upon
validation, all entry fields that accept monetary value in this page
are set to 0 if left empty, otherwise these fields must contain values
not less than 0. |
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Gross
Income from Operation for Exempt, Special and Regular Rate are computed
upon validation to be equivalent to Sales/Revenues/Receipts/Fees less
the Cost of Sales/Services. |
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Total
Gross Income for Exempt, Special and Regular Rate are computed upon
validation to be equivalent to the sum of Gross Income from Operation
and Non-Operating and Other Income |
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Taxable
Income for Exempt, Special and Regular Rate are computed upon validation
to be equivalent to Total Gross Income less the Deductions |
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Income
Tax for Special and Regular Rate are computed upon validation as Taxable
Income * Tax Rate |
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If
the Regular Rate Income Tax (Item 22B) is greater than the Minimum
Corporate Income Tax (Item 24) then the Unexpired Excess of Prior
Year's MCIT over Normal Income Tax Rate (Item 25B), is set based from
the computed value from Section C page. Otherwise this field is set
to 0. |
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Balance
(Item 25C) is computed as Tax on Transactions under Regular Rate (Item
25A) less the Unexpired Excess of Prior Year's MCIT over Normal Income
Tax Rate |
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Tax
on Transaction under special rate (Item 25D) is set to be equivalent
to Income Tax under Special Rate |
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Aggregate
Income Tax Due (Item 26) is computed as the sum of Balance (Item 25C)
and Tax on Transaction under Special Rate (Item 25D) |
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Total
Tax Credits / Payments (Item 27G) is computed as the sum of the following
field values: |
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Tax
Credits/Payments (Item 27A) |
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Tax
Payments for the First Three Quarters (Item 27B) |
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Creditable
Tax Withheld for the First Three Quarters (Item 27C) |
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Creditable
Tax Withheld Per BIR Form No. 2307 for the Fourth Quarter (Item 27D) |
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Foreign
Tax Credits, if applicable (Item 27E) |
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Tax
Paid in Return Previously Filed (Item 27F) |
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Tax
Payable/(Overpayment) (Item 28) is set to Aggregate Income Tax Due
(Item 26) less the Total Tax Credits/Payments (Item 27G) |
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Penalties
(Item 29D) is the sum of Surcharge, Interest and Compromise |
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Total
Amount Payable/(Overpayment) (Item 30) is set to the sum of Total
Amount Payable/(Overpayment) (Item 30) is not defaulted to any value
and is disabled. This is computed as part of the Validation Process
as:
· If the value computed for Penalties (Item 29D) is more than
0 then Total (Item 28) is set to Penalties (Item 29D), Otherwise it
is computed as : Total (Item 28) + Penalties (Item 29D) |
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17
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Click the Validate button to check the validity of the entries and to get
the totals. |
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18
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The system will prompt
you if there is any problem with the supplied information, and correct
this accordingly. After the necessary correction, you may again validate
the return form by repeating Step 18.
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19
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If you want to edit some input fields you may do this by clicking the Edit
Button located on the bottom of the page. Or, if you are already satisfied
with the result and all the information are correct you may already submit
this by clicking the Submit Button beside the Edit Button. |
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20
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A
reference number will be given by the system for filed tax return.
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21
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Schedule 1 Page:
| 1. |
All
fields are set to blank if there are no existing values based on the
previous entries. Otherwise, fields will be set as specified on the
previous entries. |
| 2. |
Sale or Goods/Properties,
Sale of Services, Lease of Properties, Special Rate Sales Returns/Discounts,
Regular Rate Sales Returns/Discount fields accept monetary value
and must not be less than 0. Values are set to 0 if left empty:
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| 3. |
The
following fields are computed automatically upon lost focus of those
related entry fields: Special Rate Total Creditable Tax Withheld,
Special Rate Total Taxable Amount, Regular Rate Total Creditable Tax
Withheld, Regular Rate Total Taxable Amount, Special Rate Net Sales/Revenues/Receipts/Fees,
Regular Rate Net Sales/Revenues/Receipts/Fees |
| 4. |
Click
the Ok button to transfer the computed Special Rate and Regular Rate
Net Sales/Revenues/Receipts/Fees values to the 1702 page's Item 14B
and 14C. This also unloads the Schedule1 page and focuses on the 1702
page. |
| 5. |
Cancel
button is used or clicked to disregard all entries and unload the
Schedule 1 page. |
| 6. |
Clear
button is used to clear all contents of the fields present in the
page. |
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22
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Schedule 2/3 page:
| 1. |
All
fields are set to blank if there are no existing values based on the
previous entries. Otherwise, fields will be set as specified on the
previous entries. |
| 2. |
Merchandise/Finished Goods Inventory, Beginning, Purchase of Merchandise/Cost
of Good Manufactured, Merchandise/Finished Goods Inventory, End fields
accept monetary value and must not be less than 0. Fields are set
to 0 if left empty upon lost focus: |
| 3. |
The following fields are computed automatically upon lost focus of
entry fields that are part of the expression for Schedule 2 section:
Special Rate Total Goods Available for Sale, Regular Rate Total Goods
Available for Sale, Special Rate Cost of Sales, Regular Rate Cost
of Sales; for Schedule 3: Special Rate Total Cost of Services, Regular
Rate Total Cost of Services |
| 4. |
Click the OK button to unload the Schedule 2/3 page and for setting
the following fields on 1702 page: Item 15B and Item 15C. |
| 5. |
Cancel button is used or clicked to disregard all entries and unload
the Schedule 2/3 page. |
| 6. |
Clear button is used to clear all contents of the fields present in
the page. |
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23
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Schedule 4 page:
| 1. |
All fields are set to blank if there are no existing values on the
previous entries. Otherwise, fields will be set according to the values
on the previous entries. |
| 2. |
Nature
of Income column accepts free text for the description while the Special
Rate Creditable Tax Withheld, Special Rate Taxable Amount, Regular
Rate Creditable Tax Withheld, and Regular Rate Taxable Amount fields,
if supplied must not be less that 0, otherwise, will be set to zero.
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| 3. |
Each column consists of 7 entry fields, which gives the taxpayer ability
to encode or specify 7 other taxable income. |
| 4. |
Each record is validated upon lost focus of every entry fields associated
to the record. All entry fields associated to the record must have
a proper value if the taxpayer supplied a value for either of these
fields. |
| 5. |
The following fields are computed automatically upon lost focus of
monetary entry fields that are part of the expression: Special Rate
Total Other Income of Creditable Tax Withheld, Regular Rate Total
Other Income of Creditable Tax Withheld, Special Rate Total Other
Income of Taxable Amount and Regular Rate Total Other Income of Taxable
Amount. |
| 6. |
Click OK button to unload the Schedule 4 page and to set the following
fields on 1702 page: Item 17B, Item 17C. |
| 7. |
Cancel button is used or clicked to disregard all entries and unload
the Schedule 4 page |
| 8. |
Clear button is used to clear all contents of the fields present in
the page. |
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24
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Section D Page:
| 1. |
All fields are set to blank if there are no existing values based
on the previous entries. Otherwise, fields will be set according to
the values on the previous entries. |
| 2. |
Section D consist of the following entry fields which accept monetary
value and must not be less than 0. The fields are set to 0 if left
empty upon lost focus:
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Salaries
and Allowances |
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Fringe
Benefits |
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Rentals |
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Professional
Fees |
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Director's
Fees |
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Management
and Consultancy Fee |
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Security
Services |
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Janitorial
and Messengeral Services |
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Tolling
Fees |
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Other
Outside Services |
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Advertising |
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Commissions |
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Repairs
and Maintenance-Labor |
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Repairs
and Maintenance-Materials/Supplies |
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Research
and Development |
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Office
Supplies |
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Royalties |
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Interest |
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SSS,
GSIS, Philhealth, HDMF and Other Contributions |
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Insurance |
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Representation
& Entertainment |
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Transportation
& Travel |
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Fuel
and Oil |
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Communications,
Light and Water |
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Taxes
and Licenses |
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Losses |
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Bad
Debts |
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Depreciation |
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Charitable
Contributions |
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Amortization
of Pension Trust Contribution |
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Miscellaneous |
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Others |
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Allowance
of NOLCO |
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| 3. |
The following fields are computed automatically upon lost focus of
monetary entry fields that are part of the expression:
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Exempt
Total Expenses is set to the sum of Exempt Column |
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Special
Rate Total Expenses is set to the sum of Taxable Special Rate
Column |
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Regular
Rate Total Expenses is set to the sum of Taxable Regular Rate
Column |
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| 4. |
OK button is used for unloading the Section D page and for setting
the following fields on 1702 page: Items 19A, 19B, 19C. |
| 5. |
Cancel button is used or clicked to disregard all entries and unload
the Section D page |
| 6. |
Clear button is used to clear all contents of the fields present in
the page |
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25
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Section B Page:
| 1. |
All fields are set to blank if there are no existing values based
on the previous entries. Otherwise, fields will be set according to
the values on the previous entries |
| 2. |
Tax Rate (Item 69) if defaulted to 2% upon page upload |
| 3. |
Total Gross Income for MCIT purposes (Item 68) is an entry field for
monetary value and is set to 0 if left empty. Otherwise, the value
that was supplied must not be less than 0. |
| 4. |
OK button is used for unloading the Section B page and for setting
the MCIT (Item 24) field of 1702 page. |
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26
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Section C Page
| 1. |
This section is disabled if the Minimum Corporate Income Tax (MCIT
Section B) is null. |
| 2. |
All fields are set to blank if there are no existing values based
on the previous entries. Otherwise, fields will be set according to
the values on the previous entries |
| 3. |
The page consist of 5 columns which are:
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Year |
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Normal
Income Tax as Adjusted |
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MCIT |
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Excess
at MCIT over Normal Income Tax as adjusted |
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Excess
MCIT applied this Year |
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Balance
MCIT still allowable as Tax Credit |
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Expired
Portion of Excess MCIT |
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| 4. |
Each column consists of 4 entry fields, which gives the taxpayer ability
to encode or specify 4 other taxable income. |
| 5. |
All entry fields for monetary values are set to 0 if left empty upon
lost focus, otherwise the value supplied must not be less than 0. |
| 6. |
OK
button is used for unloading the Section E page and for setting the
following fields on 1702 page: Item 25B. |
| 7. |
Cancel
button is used or clicked to disregard all entries and unload the
Section D page |
| 8. |
Clear button is used to clear all contents of the fields present in
the page |
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27
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Schedule 5A/5B Page
| 1. |
All fields are set to blank if there are no existing values based
on the previous entries. Otherwise, fields will be set according to
the values on the previous entries. |
| 2. |
The following entry fields are set to 0 during validation process
if left empty. Otherwise, the supplied value must be a monetary value
and must not be less than 0.
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Amount |
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Applied
Previous Year |
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Applied
Current Year |
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Net
Operating Loss |
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| 3. |
The following fields are computed automatically upon lost focus of
monetary entry fields that are part of the expression:
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Net
Operating Loss carry-over deducted is difference of Gross Income
and Total Deductions exclusive of NOLCO & Deductions under
Special Laws |
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Total
is set to the sum of Taxable Income and Net Operating Loss carry-over
deducted |
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| 4. |
If the value
entered in the column "Year Incurred" is the same as that
of the return period the following columns should be disabled: Applied
Previous Year and Net Operating Loss (unapplied).
If the value
entered in the column "Year Incurred" is already expired
based on the given 3-year threshold the following columns should
be disabled : Amount, Applied Previous Year, Applied Current Year
and Net Operating Loss (unapplied).
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| 5. |
OK button is used for unloading the Schedule 5A/5B page and for setting
Allowance of NOLCO (Item 111) of 1702 Section D. |
| 6. |
Cancel button is used or clicked to disregard all entries and unload
the Schedule 5A/5B page. |
| 7. |
Clear button is used to clear all contents of the fields present in
the page. |
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