How to Compute Annual Income Tax for Self-employed Taxpayers in the Philippines
The 15th day of April is an annual great event for both the taxpayers and the Bureau of Internal Revenue (BIR) in the Philippines. This is the day that we, taxpayers should remit a portion of our income to the bureau. This portion or burden is what we called the “income tax”. This is our penalty for doing-well in business. I mean, this is our obligation to share to the government a portion of the earnings we’ve got in doing great in business.
As the deadline is near approaching, I’m also trying to compute my income tax due for the year 2008 as a self employed professional. And as an accountant and a blogger, I make this post to aid readers how to compute tax for individual taxpayers. So let us start now before the deadline comes! First let us secure an Annual Income Tax Return (BIR Form 1701) for self-employed taxpayers (including those with both business and compensation income. Click here to download a pdf file of BIR form 1701. Read more
