Quarterly Income Tax for Self-employed Individuals

Mandatory filing of quarterly summary declarations (BIR Form No. 1701Q) for the first three quarters.
Final or adjustment return (BIR Form No. 1701) to be filed after the fourth quarter.
Applies to individuals, estates, and trusts earning income from professional practice or trade/business as sole proprietors or general partnership members.
Income declared must be taxable under Section 21(f) of the NIRC.
Excludes nonresident Filipino citizens with foreign-source income and nonresident aliens not engaged in trade/business in the Philippines.

Quarterly returns are due on May 15, August 15, and November 15 of the current year for the 1st, 2nd, and 3rd quarters respectively.
Final return is due on April 15 of the following year.
Corresponding income tax must be paid concurrently with each return based on actual income and deductions for the quarter.
Filing quarterly returns and paying tax substitutes for estimated income declaration and payment under Sections 67(a) and (b) of the NIRC.
Recognizes that prior year tax liability is often an unreliable estimate for current year tax calculation.

Returns and tax payments to be submitted to accredited banks in the taxpayer’s principal business city or municipality.
Where accredited banks are unavailable, filings and payments are made to authorized collection officers or Municipal Treasurers.

Gross income and deductions are computed on a cumulative basis per quarter.
Only income taxable under Section 21(f) of the NIRC is reported; compensation and passive income are excluded.
Personal and additional exemptions are excluded from deductions until the last quarter.
Tax due each quarter is computed based on cumulative taxable income per Section 21(f).
Taxes previously paid and withholding taxes deducted from the computed tax to arrive at the current quarter's payable tax.
Excess payments can be claimed as refund, tax credits, or applied as credit against next year’s quarterly tax liabilities.
Unused credits in the succeeding year can be claimed as refunds under Section 204 of the NIRC.

Penalties apply for failure to file, late filing, failure to pay tax, or underpayment of quarterly tax returns.
Penalties are imposed according to Sections 248 and/or 249 of the NIRC.