BIR Issues Annual Income Tax Return Filing Guidelines for Calendar Year 2025: What Philippine Businesses Need to Know

BIR Issues Annual Income Tax Return Filing Guidelines for Calendar Year 2025: What Philippine Businesses Need to Know

Taxes
March 18, 2026•3 min read

Published Date: March 18, 2026

Published By: Jac Cantos, Upcloud Accounting

The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 20-2026, dated March 16, 2026, outlining the official guidelines for filing Annual Income Tax Returns (AITR) and settling taxes due for Calendar Year 2025.

For Philippine businesses and individual taxpayers, this circular clarifies filing options, acceptable platforms, and what it takes to stay penalty-free this tax season.

Where and How to File: Your Platform Options

The BIR continues to prioritize electronic filing. Depending on your taxpayer classification, here’s what applies:

  • eFPS (Electronic Filing and Payment System): Required for mandated taxpayers or those voluntarily enrolled.

  • Offline eBIRForms Package v7.9.5: Covers all non-eFPS taxpayers, including those filing “No Payment” returns. The available AITRs include BIR Form No. 1700 (v2018), 1701 (v2018), 1701A, 1702-RT (v2018C), 1702-EX (v2018C), and 1702-MX (v2018C).

  • Manual Filing: Permitted only under specific conditions: during a BIR system outage (supported by an official advisory), with the Commissioner’s authorization for valid reasons, or if the required form is not yet available electronically.

The default is always electronic, manual filing is an exception, not an option.

Special Rules for Micro and Small Taxpayers

Micro taxpayers have gross sales or receipts not exceeding ₱3,000,000, while small taxpayers fall within the ₱3,000,001 to ₱20,000,000 range. If your business falls into either bracket, RMC 20-2026 offers added flexibility for AITR filing:

  • You may use BIR Forms 1701-MS, 1701, or 1701A, regardless of what is indicated in your Certificate of Registration (COR).

  • Form 1701-MS is currently not available electronically and must be filed manually.

  • If you’ve already filed using 1701 or 1701A electronically, you are no longer required to separately file 1701-MS.

Medium and large taxpayers are required to file electronically using 1701 or 1701A, with no exceptions.

Submitting Your Attachments the Right Way

All required attachments must be submitted through the eAFS (Electronic Audited Financial Statements) system. Accepted proofs of filing include:

  • Filing Reference Number (FRN)

  • Tax Return Receipt Confirmation (TRRC)

  • eAFS Transaction Reference Number (TRN)

Manual submission of attachments is only allowed if eAFS is officially unavailable, confirmed by a BIR advisory.

Penalty Relief: What You Won’t Be Fined For

RMC 20-2026 provides clear penalty relief provisions:

  • No penalties for filing at the wrong venue.

  • Micro and small taxpayers are exempt from penalties if they filed 1701 or 1701A electronically, or filed and paid manually using 1701-MS.

These provisions reduce the risk of unintentional non-compliance, but only if you use the correct form and process for your taxpayer type.

Navigating BIR guidelines and ensuring accurate AITR filing can be complex.

We offers expert tax services to help you stay compliant and penalty-free:

  • Taxpayer Classification: We help determine the correct classification for your business and the appropriate filing method.

  • eFPS and eBIRForms Assistance: We ensure your returns are filed correctly through the mandated electronic platforms.

  • Micro and Small Taxpayer Guidance: We help you leverage the flexibility offered to smaller businesses.

  • Attachment Submission: We ensure all required attachments are submitted correctly via eAFS.

  • Compliance Assurance: We stay updated on all BIR regulations to ensure your filings are accurate and timely.

Contact Upcloud Accounting today for a free consultation and ensure your 2025 Annual Income Tax Return is filed correctly and on time.

Upcloud Accounting: Virtual Outsourced Accounting and Bookkeeping Services in the Philippines

Upcloud Accounting offers accounting, bookkeeping, tax compliance, and business licensing services specializing with startups and SMEs in the Philippines.

Our goal is to increase efficiency, automation, and transparency across the accounting and finance functions of our clients with our cutting-edge technology. If you want to move your company’s finance function online, contact our Team of Expert Accountants and Bookkeepers directly via [email protected] or visit www.upcloudaccounting.comto learn more about how Upcloud Accounting accounting services can support your PH business!

Disclaimer: This article or blog is only for general knowledge and guidance and is not a substitute for an expert opinion. For technical advice, please consult your tax / legal advisor for your specific business concerns. For comments, suggestions, and feedback, feel free to email us at [email protected].

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