BIR Webinar on AITR Filing and Payment: Key Insights

On February 21, 2025, the Bureau of Internal Revenue (BIR) of the Philippines conducted an informative webinar focusing on the Annual Income Tax Return (AITR) filing and payment for employees earning purely compensation income and mixed income earners. The event was held at 1:00 PM and was accessible via Zoom and Facebook Live, providing a comprehensive guide on various aspects of income tax return filing. For those who missed the live session, the video recording is available here.

Key Topics Discussed

1. Different Kinds of Compensation

   • The webinar covered various types of compensation, including regular and supplementary compensations. Understanding these distinctions is crucial for accurate tax filing and compliance.

2. Compensations Exempted from Withholding Tax

   • Certain compensations are exempted from withholding tax, such as minimum wage, de minimis benefits, and other specific allowances.

3. Minimum Wage

   • The discussion included the latest updates on minimum wage regulations in the Philippines, ensuring that employees and employers are aware of the current standards.

4. De Minimis Benefits

   • De minimis benefits, which are not subject to withholding tax, were explained in detail. These benefits include small-value perks provided by employers to employees, such as rice subsidies and medical allowances.

5. Annualized Withholding Tax (Year-End Adjustment)

   • The concept of annualized withholding tax, also known as year-end adjustment, was discussed. This process ensures that the correct amount of tax is withheld from employees' compensation throughout the year.

6. Substituted Filing

   • Substituted filing allows employees who meet certain conditions to use their employer's annual return as their own income tax return. This simplifies the filing process for eligible employees.

7. Different BIR Forms to be Submitted

   • The webinar provided a comprehensive list of BIR forms required for various tax filings, including BIR Form 1700, 1701, and 1702.

8. Guidelines in Filing of AITR Using eBIRForms

   • Detailed guidelines on filing AITR using the eBIRForms system were shared. This electronic system enables taxpayers to prepare and file their tax returns conveniently and accurately.

Conclusion

This BIR webinar was particularly relevant for employees and mixed income earners looking to understand the nuances of tax filing and ensure compliance with the latest regulations. The webinar provided valuable insights and practical advice, making it an essential resource for anyone involved in the tax filing process.

For more information and to watch the full webinar, click here.