What is BIR Form 1702-RT and Who Should File It?
If you are a corporation, partnership, or other non-individual taxpayer in the Philippines, you may need to file BIR Form 1702-RT or the Annual Income Tax Return for Corporation, Partnership and Other Non-Individual Taxpayer Subject Only to REGULAR Income Tax Rate. This article will explain what this form is, who should file it, how to fill it up, how to file and submit it online, and some frequently asked questions about it.
Definition and Purpose of BIR Form 1702-RT
BIR Form 1702-RT is a tax form that is used to report the income tax liability of non-individual taxpayers who are subject only to the regular income tax rate of 30%. The form shows the computation of the taxable income, the tax due, the tax credits or payments, and the balance payable or refundable. The form also includes information on the balance sheet and income statement of the taxpayer, as well as the tax relief availment and the external auditor or accredited tax agent details.
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Taxpayers Subject to Regular Income Tax Rate
According to the Bureau of Internal Revenue (BIR), the following taxpayers are required to file BIR Form 1702-RT:
Domestic corporations (including co-operatives) that derive income from sources within and outside the Philippines;
Resident foreign corporations that derive income from sources within the Philippines;
Non-resident foreign corporations that have a branch office in the Philippines that derive income from sources within the Philippines;
Partnerships (general professional partnerships or GPPs are exempted) that derive income from sources within and outside the Philippines;
Joint ventures or consortiums that are taxable as corporations;
Other non-individual taxpayers not specifically subject to another income tax rate under existing laws.
How to Fill Up BIR Form 1702-RT
BIR Form 1702-RT consists of six parts and three schedules. The following are the instructions on how to fill up each part of the form:
Part I - Background Information
This part contains basic information about the taxpayer, such as:
Taxpayer Identification Number (TIN);
Registered Name;
Registered Address;
Contact Number;
Email Address;
Main Line of Business/Industry Classification Code;
Taxable Year Ended;
Date of Incorporation/Organization/Registration;
Type of F - Filer Status (whether single proprietorship, partnership, corporation, etc.);
Method of Deduction (whether itemized or optional standard deduction);
Method of Accounting (whether cash or accrual);
Amended Return (whether yes or no);
Number of Sheet/s Attached (if any).
Part II - Computation of Tax
This part shows the computation of the taxable income, the tax due, the tax credits or payments, and the balance payable or refundable. The following are the steps to compute the tax:
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Enter the gross income from trade or business or profession (Schedule 1) and other income (Schedule 2) in Items 17A and 17B, respectively. Add them to get the total gross income in Item 17C.
Deduct the allowable deductions from gross income (Schedule 3) in Item 18A. Enter the optional standard deduction (40% of gross income) in Item 18B, if applicable. Choose the higher amount between Item 18A and Item 18B and enter it in Item 18C.
Subtract Item 18C from Item 17C to get the taxable income before net operating loss carry-over (NOLCO) in Item 19.
Enter the NOLCO in Item 20A, if any. Subtract it from Item 19 to get the taxable income in Item 20B.
Multiply Item 20B by the regular income tax rate of 30% to get the income tax due in Item 21.
Enter the tax credits/payments in Items 22A to 22M, such as prior year's excess credits, quarterly income tax payments, creditable withholding taxes, etc. Add them to get the total tax credits/payments in Item 22N.
Subtract Item 22N from Item 21 to get the balance of tax due/(overpayment) in Item 23.
If Item 23 is positive, enter it in Item 24A as the tax still due. Add the surcharge, interest, and compromise penalty, if any, in Items 24B to 24D. Add them to get the total amount payable in Item 24E.
If Item 23 is negative, enter it in Item 25A as the overpayment. Indicate whether you want to be refunded or to claim a tax credit for next year in Item 25B.
Part III - Balance Sheet Information
This part shows the balance sheet information of the taxpayer as of the end of the taxable year. The following are the items to be filled out:
Current Assets (such as cash, receivables, inventories, etc.) in Items 26A to 26H;
Non-Current Assets (such as property, plant and equipment, investments, intangibles, etc.) in Items 27A to 27G;
Total Assets (sum of Items 26I and 27H) in Item 28;
Current Liabilities (such as payables, accruals, current portion of long-term debt, etc.) in Items 29A to 29G;
Non-Current Liabilities (such as long-term debt, deferred tax liability, etc.) in Items 30A to 30D;
Total Liabilities (sum of Items 29H and 30E) in Item 31;
Capital Stock (if applicable) in Item 32;
Additional Paid-in Capital (if applicable) in Item 33;
Retained Earnings (Appropriated/Unappropriated) in Items 34 and 35, respectively;
Total Equity (sum of Items 32 to 35) in Item 36;
Total Liabilities and Equity (sum of Items 31 and 36) in Item 37.
Part IV - Income Statement Information
This part shows the income statement information of the taxpayer for the taxable year. The following are the items to be filled out:
Gross Sales/Revenues/Receipts/Fees (such as sales of goods, rendering of services, etc.) in Items 38A to 38D;
Less: Sales Returns, Allowances and Discounts in Item 39;
Net Sales/Revenues/Receipts/Fees (Item 38E minus Item 39) in Item 40;
Cost of Sales/Services (such as direct materials, direct labor, factory overhead, etc.) in Items 41A to 41D;
Gross Income from Operation (Item 40 minus Item 41E) in Item 42;
Other Income (such as interest income, dividend income, gain on sale of assets, etc.) in Items 43A to 43D;
Total Gross Income (sum of Items 42 and 43E) in Item 44;
Operating Expenses (such as salaries and wages, taxes and licenses, depreciation and amortization, etc.) in Items 45A to 45K;
Total Operating Expenses (sum of Items 45A to 45K) in Item 46;
Income from Operation (Item 44 minus Item 46) in Item 47;
Add: Non-Operating and Other Income/(Expenses) (such as interest expense, loss on sale of assets, etc.) in Items 48A to 48D;
Total Non-Operating and Other Income/(Expenses) (sum of Items 48A to 48D) in Item 49;
Net Income/(Loss) Before Income Tax (Item 47 plus/minus Item 49) in Item 50;
Less: Income Tax Expense (Current and Deferred) in Items 51A and 51B, respectively;
Net Income/(Loss) After Income Tax (Item 50 minus Item 51C) in Item 52.
Part V - Tax Relief Availment
This part shows the tax relief availment of the taxpayer under special laws or international tax treaties. The following are the items to be filled out:
Special Tax Rate (such as preferential rate, final tax, etc.) in Item 53A;
Type of Income Payment (such as dividends, royalties, etc.) in Item 53B;
ATC/Nature of Tax Relief (such as tax treaty, tax sparing, etc.) in Item 53C;
Taxable Amount of Income Payment in Item 53D;
Tax Rate in Item 53E;
Tax Required to be Withheld/Paid in Item 53F.
Part VI - Information - External Auditor/Accredited Tax Agent
This part shows the information of the external auditor or accredited tax agent who audited or prepared the financial statements and income tax return of the taxpayer. The following are the items to be filled out:
Name of Individual/Name of Firm in Item 54A/54B;
TIN of Individual/TIN of Firm in Item 55A/55B;
BOA/BIR Accreditation No. in Item 56A/56B;
Issue Date in Item 57A/57B;
Expiry Date in Item 58A/58B.
How to File and Submit BIR Form 1702-RT Online
BIR Form 1702-RT can be filed and submitted online using the Electronic Bureau of Internal Revenue Forms (eBIRForms) system. The following are the steps to file and submit the form online:
Download and Install eBIRForms Package
The eBIRForms Package is a software application that allows taxpayers to fill up tax forms offline and submit them online. The package can be downloaded from the BIR website at . The package contains different versions of BIR Form 1702-RT for different taxable years. Choose the appropriate version for your taxable year and install it on your computer.
Open and Fill Out BIR Form 1702-RT
After installing the eBIRForms Package, open it and select BIR Form 1702-RT from the list of forms. Fill out the form following the instructions given in Part II of this article. You can also import data from an Excel file or a previous eBIRForms file if you have one. Make sure to review your entries for accuracy and completeness before proceeding to the next step.
Validate, Save, and Print BIR Form 1702-RT
After filling out the form, click on the Validate button to check for errors or discrepancies. If there are any, correct them accordingly. Then, click on the Save button to save your file on your computer. You can also click on the Print button to print a copy of your form for your reference. You will need to attach a printed copy of your form when you pay your tax due or claim your tax credit/refund.
Submit BIR Form 1702-RT Online
After saving and printing your form, you can submit it online by clicking on the Submit button. You will need to enter your username and password for the eBIRForms system. If you do not have an account yet, you can register for one at . After logging in, you will see a confirmation message that your form has been successfully submitted. You will also receive an email notification with a copy of your form and a confirmation receipt.
Pay the Tax Due or Claim the Tax Credit/Refund
If you have a balance of tax due (Item 24E), you will need to pay it on or before the deadline using any of the following modes:
Online payment through GCash, Landbank LinkBizPortal, DBP PayTax Online, or UnionBank Online;
Over-the-counter payment through Authorized Agent Banks (AABs);
Revenue Collection Officers (RCOs) in areas where there are no AABs.Electronic Filing and Payment System (EFPS) for enrolled taxpayers.
When paying, you will need to present a printed copy of your BIR Form 1702-RT and the confirmation receipt. You will also receive a BIR Payment Form 0605 as proof of payment.
If you have an overpayment (Item 25A), you can either claim a refund or a tax credit for next year. To claim a refund, you will need to file a written claim with the BIR within two years from the date of payment. You will also need to submit the following documents:
Printed copy of BIR Form 1702-RT and the confirmation receipt;
Audited financial statements and income tax return for the taxable year;
Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable;
Proof of payment of tax due, if any;
Other documents that may be required by the BIR.
To claim a tax credit, you will need to indicate it in Item 25B of your BIR Form 1702-RT. You can use the amount of overpayment as a credit against your income tax due for the next taxable year.
Frequently Asked Questions About BIR Form 1702-RT
Here are some of the common questions that taxpayers may have about BIR Form 1702-RT:
What is the deadline for filing BIR Form 1702-RT?
The deadline for filing BIR Form 1702-RT is on or before the 15th day of the fourth month following the close of the taxable year. For example, if your taxable year ends on December 31, 2023, you must file your BIR Form 1702-RT on or before April 15, 2024.
What are the penalties for late filing or non-filing of BIR Form 1702-RT?
If you fail to file your BIR Form 1702-RT on time or at all, you may be subject to the following penalties:
A surcharge of 25% or 50% of the tax due, depending on the reason for the late filing or non-filing;
An interest of 12% per annum on the unpaid tax due from the date of filing until the date of payment;
A compromise penalty ranging from P1,000 to P25,000, depending on the amount of tax due.
What are the attachments required for BIR Form 1702-RT?
The following are the attachments that may be required for BIR Form 1702-RT, depending on the nature and amount of income and expenses of the taxpayer:
Audited financial statements and income tax return for the taxable year;
Statement of Management's Responsibility for Financial Statements;
Certificate of Creditable Tax Withheld at Source (BIR Form 2307), if applicable;
Certificate of Income Payments Not Subjected to Withholding Tax (BIR Form 2304), if applicable;
Duly approved Tax Debit Memo, if applicable;
Proof of prior year's excess tax credits, if applicable;
Proof of foreign tax credits, if applicable;
Proof of tax relief availment, if applicable;
Other documents that may be required by the BIR.
How to amend BIR Form 1702-RT?
If you need to amend your BIR Form 1702-RT due to errors or omissions, you can do so by following these steps:
Download and fill out the latest version of BIR Form 1702-RT using the eBIRForms Package;
Indicate "Yes" in Item 14 (Amended Return) and provide the reason for the amendment in the space provided;
Make the necessary corrections or changes in the form and compute the revised tax due or overpayment;
Submit the amended BIR Form 1702-RT online using the same procedure as the original return;
Pay any additional tax due or claim any additional refund or credit resulting from the amendment.
Where to get help or assistance for BIR Form 1702-RT?
If you have any questions or concerns about BIR Form 1702-RT, you can contact the BIR through the following channels:
BIR Customer Assistance Division: (02) 8981-7003 or (02) 8981-7020;
BIR Contact Center: 8981-8888 or contact_us@cctr.bir.gov.ph;
BIR National Office or Revenue District Office nearest you.
I hope this article has been helpful and informative for you. If you need more assistance with your tax compliance, you can also consult a professional tax advisor or accountant. Thank you for reading and have a great day! 44f88ac181