BIR Form 1701, also known as Annual Income Tax Return for Self-Employed Individuals, Estates and Trusts is a tax form which summarizes all the transactions made over the tax calendar year.

Follow these steps in adding your 1701 (Annual Income Tax Return) report in JuanTax

Modules

I. During Setup (Important)
II. Generating 1701 Reports
III. Exploring Input Summary
     a. Short Period
     b. Alphanumeric Tax Code
     c. Background Information on Tax Filer
         c.i. Filer Basic Information
         c.ii. Filer Type
            c.ii.i Civil Status
         c.iii. PSIC & PSOC
         c.iv. Method of Deduction
         c.v. Method of Accounting
    d. Background information on Spouse
         d.i. ATC

     e. Community Tax Certificate (CTC) Number/Gov't Issued ID
        e.i. Community Tax Certificate (CTC) Number/Gov't Issued ID
        e.ii. Date of Issue
        e. iii. Place of Issue
     f. Additional Exemptions
     g. Other Compensation and Income Tax Due Fields
     h. Sales/Revenues/Receipts/Fees from Business/Profession, including amount received from General Professional Partnership (GPP)
     i. Other Taxable Income from Operations not Subject to Final Tax
     j. Non-Operating Income
     k. Tax Credits/Payments
     l. Balance Sheet
     m. Reconciliation of Net Income per Books Against Taxable Income
     n. Supplemental Information
       n.i. Final Withholding Tab Subsections
          n.i.i.
Interest/Royalties/Dividends/Prices and Winnings/Fringe      Benefits/Compensation
          n.i.ii. Sales/Exchange of Real Properties
          n.i.iii. Sale / Exchange of Shares of Stocks
          n.i.iv. Other Income
       n.ii. Gross Income/Receipts Exempted from Income Tax
           n.ii.i.
Proceeds of Life Insurance Policy
           n.ii.ii. Personal/Real Properties Received thru Gifts, Bequests and Devices
           n.ii.iii. Other Exempt Income/Receipts
    o. Overpayment
     p. Information - External Auditor / Accredited Tax Agent
     q. Total Penalties

IV. Preview of the Report
V. Notes and Activity
 VI. Filing the Report
VII. Paying 1701 Returns

I. During Setup (Important)

You need to make sure that you had classified your organization as an Individual during the setup. 

II. Generating 1701 Reports

Start generating income tax returns by going to your dashboard then proceed to Income Tax Return. Choose the 1701 tab then click the Generate Report (plus icon) to continue.

Select year of the return, then click the Generate button.

A pop-up message will appear, confirming that you had successfully generated the report.

III. Exploring Input Summary

After clicking your generated report, you’ll be prompted to the Input Summary window where you need to enter information for your 1701 return. 

The Input Summary page contains all the exact information which is included in an actual income tax form, which is why you need to go through all of the sections to successfully file your return.

 a. Short Period

You need to indicate the month wherein you will be generating the report.

b. Alphanumeric Tax Code

You need to choose for the appropriate alphanumeric tax code (ATC). It comes with 3 radio buttons: (1) Compensation Income, (2) Business Income and (3) Mixed Income.

c. Background Information on Tax Filer

Once you’re already in the Background Information section , you’ll encounter tabs such as Filer Basic Information, Filer Type, PSIC & PSOC, Method of Deduction and Method of Accounting.

c.i. Filer Basic Information

You need to fill out fields such as date of birth and email address.

c.ii. Filer Type

In this section, you need to indicate the filing type of the individual and choose between 4 radio buttons: (a) Single Proprietor, (b) Professional, (c) Estate and (d) Trust.

c.ii.i Civil Status

You also need to specify your current civil status if you're single or married. If married, you need to confirm if your spouse has an income and if those returns are intended for joint or separate filing.

c.iii. PSIC & PSOC

You also need to enter your PSIC (or Philippine Standard Industrial Classification) and Philippine Standard Occupational Classification (PSOC). Click Save button to continue.

c.iv. Method of Deduction

In the Method of Deduction tab, you have to choose between 2 radio buttons: (1) Itemized Deduction or (2) 40% Optional Standard Deduction.

c.v. Method of Accounting

You also need to choose your method of accounting by selecting among the radio buttons such as (a) Cash, (b) Accrual or (c) Others. If others, you need to specify your method of accounting.

d. Background Information on Spouse

d.i. ATC 

For your spouse's Alphanumeric Tax Code (ATC), you'll also need to choose within 3 radio buttons: (1) Compensation Income, (2) Business Income and (3) Mixed Income.

Once specified, all the other tabs such as Spouse Basic Information, Method of Deduction and Method of Accounting would appear, and you need to fill those tabs just like what you did in Tax Filer Backgroud Information.

e. Community Tax Certificate (CTC) Number/Gov't Issued ID

Tabs included in this section are Community Tax Certificate (CTC) Number/Gov't Issued ID, Date of Issue and Place of Issue.

e.i. Community Tax Certificate (CTC) Number/Gov't Issued ID

You need to choose between the radio buttons if you'll be using either your: (a) CTC Number or (b) Gov't Issued ID.  Be able to include the number if it's for CTC, and specify amount in the field below. Click Save button to update your information.

e.ii. Date of Issue

You need to enter the date of when you issued your CTC.

e. iii. Place of Issue

You also need to include the location of where you issued your CTC. Click Save button to continue.

f. Additional Exemptions

Be able to claim additional expenses by determining the number of dependents that you have.

Note: You can choose if you would claim exemptions in behalf of yourself (as tax filer) or your spouse. Once you click the Yes radio button, you can now proceed on adding dependents in your report.

Clicking the Add Exemption icon (plus sign) will prompt you on adding your dependents. Aside from adding exemptions, you can also edit, delete, search and navigate through your list of dependents.

Note: Dependents with ages 21 years old and below are considered as qualified dependents. Ages more than 21 yrs. old are considered as mentally/physically incapacitated.

Click the Save Changes button to continue.

g. Other Compensation and Income Tax Due Fields

For the Other Compensations and income Tax Dues section, you need to specify the amount of premium on health/hospitalization insurances (not exceeding P2,400/year), as well the percentage on tax payable allowed (not more than 50%). 

You also need to include if there are any shares from other government agencies by fillng this form based on Line 70 of the report. Fill out fields such as Description, Date and Amount before hitting the SAVE CHANGES button.

h. Sales/Revenues/Receipts/Fees from Business/Profession, including amount received from General Professional Partnership (GPP)

Click the plus (+) icon to start adding trnasactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Description, Date and Amount.

In the add transaction modal, you need to indicate if the transaction was meant for any of the following sales as listed in the screenshot below:

You can add transactions by clicking the +ADDLINE button. Finish the form by clicking the SAVE CHANGES button.

i. Other Taxable Income from Operations not Subject to Final Tax

Click the plus (+) icon to start adding trnasactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Description, Date and Amount.

j. Non-Operating Income

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Nature of Income, Date and Amount

k. Tax Credits/Payments

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Description, Date and Amount

In the add transaction modal, you need to specify the type of tax credit based on the choices listed in the screenshot below:

You can add transactions by clicking the +ADDLINE button. Finish the form by clicking the SAVE CHANGES button.

l. Balance Sheet

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Description, Date and Amount

In the add transaction modal, you need to specify the type of asset/liability based on the choices listed in the screenshot below:

You can add transactions by clicking the +ADDLINE button. Finish the form by clicking the SAVE CHANGES button.


m. Reconciliation of Net Income per Books Against Taxable Income

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Description, Date and Amount

In the add transaction modal, you need to specify the type of net income/deduction based on the choices listed in the screenshot below:

You can add transactions by clicking the +ADDLINE button. Finish the form by clicking the SAVE CHANGES button.

n. Supplemental Information

This section includes additional information on things such as Final Withholding and Exempt from Income Tax. Each section in this part of your form is also divided into sub-sections which you also need to fill out.

n.i. Final Withholding Tab Subsections

This tab is divided into 4 sub-sections: (1) Interest/Royalties/Dividends/Prices and Winnings/Fringe Benefits/Compensation, (2) Sales/Exchange of Real Properties, (3) Sale / Exchange of Shares of Stocks and (4) Other Income.

n.i.i. Interest/Royalties/Dividends/Prices and Winnings/Fringe      Benefits/Compensation

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Exempt, Actual Amount and Final Tax Withheld.

n.i.ii. Sales/Exchange of Real Properties

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Description of Property, Tax Dec No., Certificate Authorizing Registration No., Actual Amount and Final Tax Withheld.

n.i.iii. Sale / Exchange of Shares of Stocks 

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as PS/CS, Stock Certificate Series No., Certificate Authorizing Registration No., Number of Shares, Date of Issue, Actual Amount, and Final Tax Withheld.

n.i.iv. Other Income

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Other Income Subject to Final Tax, Actual Amount and Final Tax Withheld.

n.ii. Gross Income/Receipts Exempted from Income Tax

This tab is divided into 4 sub-sections: (1) Proceeds of Life Insurance Policy, (2) Properties Received thru Gifts, and (3) Other Exempt Income/Receipts.

n.ii.i. Proceeds of Life Insurance Policy

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Type, Description and Final Tax Withheld.

n.ii.ii. Personal/Real Properties Received thru Gifts, Bequests and Devices

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Description of Property, Mode of Transfer, Certificate Authorizing Registration No., and Actual Amount.

n.ii.iii. Other Exempt Income/Receipts

Click the plus (+) icon to start adding transactions in your report. You can add, edit, delete, search and navigate through your list of transactions. You should fill out fields such as Other Exempt Income/Receipts and Actual Amount.

o. Overpayment

In this section, you need to specify the purpose of the overpayment by choosing among the radio buttons listed below.

p. Information - External Auditor / Accredited Tax Agent

In this section, you also need to populate fields such as (1) Name of External Auditor/Accredited Tax Agent, (2) Name of Signing Partner (If External Auditor is a Partnership), (3) BIR Accreditation No., (4) TIN, (5) Date of Issuance, and (6) Date of Expiry before clicking the Save Changes button.

q. Total Penalties

You have the option to manually or automatically compute penalties in your 1701 form.

To manually compute your penalties, you need to enter data for fields such as Surcharge, Interest and Compromise. Click the Compute Penalty to get the total penalties for your report and click Save Changes button to update your form, with penalties included.

IV. Preview of the Report

You can also access a preview of the actual report by clicking on the Report tab next to Input Summary.

V. Notes and Activity

To see the audit trail of activities made within the report, all you need to do is to click the Notes & Activity tab.

VI. Filing the Report

Simply file your report by following the guidelines mentioned in this article through our Help site.

VII. Paying 1701 Returns

Follow the steps in this article for you be to able to pay your filed tax return in JuanTax.





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