Attachments to the ITR

By Harold S. Ocampo, 11 April 2013

The deadline for filing the annual income tax return (ITR) is just around the corner, as they say.

Individual taxpayers and non-individual taxpayers adopting the calendar year accounting period are required to file their ITR not later than April 15, 2013.

By now, most taxpayers have already filed or are in the process of finalizing their annual ITR for eventual filing.

As a reminder to taxpayers and to ensure that the annual ITR is filed properly, the Bureau of Internal Revenue (BIR) issued on March 15 Revenue Memorandum Circular (RMC) No. 27-2013, which prescribes the additional attachment to the regular itemized deductions of the ITR as well as some filing guidelines.Basically, the additional attachment is a detailed schedule of the itemized deductions. Samples of the additional attachments are provided in RMC 27-2013.

Hereunder is a brief discussion on the guidelines and additional attachments to the annual ITR (November 2011 ENCS version) as discussed under RMC No. 27-2013.

  • Individual taxpayers availing of the itemized method of deductions are required to attach the “MANDATORY ATTACHMENT TO BIR FORM NO. 1701.” Electronic Filing and Payment System (eFPS) filers must accomplish interactive BIR Form No. 1701 and attach the same to the online BIR Form No. 1701 in eFPS together with “MANDATORY ATTACHMENT TO BIR FORM NO. 1701.”
  • Non-individual taxpayers, whether availing of the optional standard deductions or the itemized deductions, are required to attach the “MANDATORY ATTACHMENT TO BIR FORM NO. 1702.” Those using the eFPS facility, e.g., large taxpayers, top 20,000 corporations, government bidders, etc., shall use BIR Form No. 1702 and electronically attach the newly-prescribed “MANDATORY ATTACHMENT TO BIR FORM NO. 1702,” as well as the ITRs starting with those covered ending Jan. 31, 2013. Non-eFPS users shall manually attach the “MANDATORY ATTACHMENT TO BIR FORM NO. 1702” to the ITR.
  • For expediency, ease and convenience in accomplishing the ITRs, all non-eFPS users are encouraged to use the interactive BIR forms, which can be downloaded from the BIR Web site (
  • In case the taxpayer needs additional rows/lines in accomplishing the “Schedules” provided in the BIR Form, a separate sheet will have to be attached. The phrase “Additional Sheet Attached” shall be indicated on the last line of the pertinent part (s)/schedule (s) on the face of the ITR.
  • The duly accomplished ITRs and additional sheets, if any, including the newly prescribed additional attachment of the regular allowable itemized deductions shall be filed as follows:

Non-eFPS TAXPAYERS -- Printed in folio-size bond paper (8.5”x13”), landscape orientation/layout signed by the taxpayer/authorized officers/representatives to be filed manually as follows:

  • With tax payment -- to any authorized agent bank (AAB). If no AAB, then to the revenue collection officer (ROC) under the jurisdiction of the revenue district office (RDO).
  • Without tax payment -- to the RDO or the ROC under the same RDO.

eFPS TAXPAYERS -- BIR Form Nos. 1700 and 1701 to be filed in the BIR’s eFPS facility.

  • 1701 eFilers may still file the accompanying schedules and attachments (i.e., financial statements, statement of management responsibility, BIR Form No. 2307, etc.) with the concerned Large Taxpayer office/RDO within 15 days after the manual filing of the return. The taxpayer shall also submit the signed hard copy of the ITR interactive form when making the initial filing. The returns are considered filed when the initial e-filing was duly accomplished.
  • Taxpayers who filed and opted to use the itemized method of deduction before the issuance of RMC No. 27-2013 are also required to amend and attach the mandatory attachment.

Experience would tell us that preparing and filing the ITR is no “walk in the park.” The April 15 deadline has even made the process more burdensome due to the “last minute filing rush.” At times, taxpayers would miss the deadline or submit an incomplete tax return, which they will end up amending long after the April 15 deadline has passed.Taxpayers should seriously consider the importance of filing the tax return on time. As a reminder, failure to file the tax return and/or pay the correct taxes on time will result in the imposition by the tax authority of the 25% surcharge, 20% annual interest and compromise penalty as well as possible criminal liabilities in appropriate cases.With the additional MANDATORY ATTACHMENT mentioned above and the possible pecuniary (civil) and criminal liabilities for late filing of tax returns, NOW is the best time for taxpayers to exert extra effort and time in completing the tax return for eventual timely filing. To address the commotion and pressure of the “last minute filing rush,” taxpayers should consider and are encouraged to file their tax returns early.

The author is a director at the Tax Services Department of Isla Lipana & Co., the Philippine member firm of the PwC network. 

Views or opinions presented in this article are solely those of the author and do not necessarily represent those of Isla Lipana & Co. The firm will not accept any liability arising from such article; the author will be personally liable for any consequent damages or other liabilities.