Philippines Introduces New Taxpayer Information Return
Wednesday, March 9, 2011
The Philippines’ Bureau of Internal Revenue (BIR) has promulgated regulations
requiring the filing by certain taxpayers of an annual information return (AIR),
either alone or in addition to their annual tax return, beginning with income
earned in the 2010 tax year.
In a recent revenue regulation, the BIR states that individual taxpayers, including
estates and trusts, resident aliens and non-resident aliens engaged in a trade
or business in the Philippines, should, if they file an annual tax return, also
complete an AIR to include their income during the fiscal year that has already
been subjected to final withholding tax and gross income excluded under the
Furthermore, certain individual taxpayers who are not currently required to
file a tax return should still file the AIR. That includes those with “pure
compensation income, derived from sources within the Philippines, the income
tax on which has been correctly withheld, whose annual taxable income exceeds
In addition, “individuals, estates and trusts whose sole income has been
subjected to final withholding tax, and the aggregate tax withheld exceeds PHP125,000
annually, whether or not remitted to the BIR”; and “individuals
whose sole income is exempt from income tax and whose total annual exempt income
exceeds PHP500,000 annually”, are also required to file an AIR.
The filing deadline is April 15 each year for those filing an AIR and an annual
tax return together, while May 15 each year is the deadline for those filing
the AIR only.