Self-employed, online sellers urged to file returns

With the April 15 deadline for annual income tax returns (ITRs) fast approaching, Bureau of Internal Revenue (BIR) Commissioner Romeo Lumagui Jr. is urging self-employed individuals and online sellers to fulfill their tax obligations.

In a Facebook video message delivered in Filipino, Lumagui emphasized that those engaged in online selling and sole proprietorship businesses—where the business is registered under an individual’s name rather than a corporation—must file their annual ITRs using BIR Form 1701.

For individuals whose annual sales exceed P3 million, additional requirements include the submission of an Auditor’s Report and Financial Statements prepared and signed by a BIR-accredited external auditor. 

“This ensures transparency, accuracy, and compliance with tax rules for businesses that have grown beyond the VAT threshold,” Lumagui explained.

The BIR also reminded taxpayers who have received BIR Form 2307, or the Certificate of Creditable Tax Withheld at Source, to attach it to their Form 1701 as proof of tax credits applied to their income tax due.

To promote tax compliance, the BIR conducted the Friendly Tax Compliance Verification Drive from February 10 to 14 as part of Tax Awareness Month. 

The nationwide initiative aimed to educate taxpayers and simplify tax rules, with over 24,000 establishments visited on the first day of the campaign.

“The BIR is here to educate our taxpayers, not to penalize them. Education leads to compliance. Improved services lead to compliance,” Lumagui said.

The agency’s efforts in tax enforcement, digital innovation, and enhanced taxpayer services have led to a record-breaking P2.852 trillion in revenue collection for 2024, surpassing its P2.848 trillion target and marking a 13-percent increase from 2023 collections.