Following its thrust of asking taxpayers to fully declare their true and accurate income, the Bureau of Internal Revenue (BIR) has released Revenue Regulations No. 2-2011 requiring certain taxpayers to file an Annual Information Return (AIR) or BIR Form No. 1705 starting taxable year 2010.
Under the said regulations, individuals, estates and trusts required by law to file an Income Tax Return (ITR) should file the said tax return together with the AIR. The AIR shall include income subjected to final withholding tax and exclusions from gross income.
Individuals who are not required to file a tax return or those qualified for substituted filing may, however, file a tax return for loan, travel and other purposes in which case they should also file the AIR.
Others not required to file an ITR but are required under the regulations to file an AIR only are: 1) pure compensation income earners whose annual taxable income derived from within the Philippines exceeds P500,000.00 tax and on which income the correct income tax has been correctly withheld; 2) individuals, estates and trusts whose sole income has been subjected to final withholding tax in excess of P125,000.00 annually, whether remitted or not to the BIR; and 3) individuals whose sole income is exempt where the aggregate amount exceeds P500,000.00 annually.
Pure compensation income earners who derived income from two or more employers are required to file an ITR together with the AIR.
The deadline for filing is April 15 each year for those filing the ITR (BIR Form No. 1700 or 1701) as well as the AIR and May 15 each year for those filing the AIR only. Those filing their returns electronically shall, in the meantime, submit in hard copies the e-filed ITR and the AIR within ten (10) days from the filing of the electronic return until such time that electronic filing of the AIR becomes available.
BIR Form No. 1705 or AIR can be accessed at and/or downloaded from the BIR website – http://www.bir.gov.ph.