BIR reminds taxpayers of May 15 deadline for filing of quarterly returns

Taxpayers were reminded by the Bureau of Internal Revenue (BIR) that they have until Monday, May 15, to submit their quarterly income tax return for individuals, estates, and trusts. (File photo) This deadline also applies to eligible self-employed individuals and professionals who wish to avail of the eight percent income tax rate option provided that their gross sales or receipts do not exceed P3 million in the current taxable year. These deadlines were mandated by the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which has been in effect since 2018. Before the TRAIN Law, self-employed individuals, including single proprietors, professionals, and mixed income earners, were generally subject to graduated income tax rates. However, the TRAIN Law provided them with a choice to use either the graduated income tax rates or the eight percent income tax rates. To qualify for the eight percent option, taxpayers must meet certain criteria, including earning gross sales and other non-operating income that do not exceed P3 million during the taxable year. This also applies to mixed income earners who earn both compensation income and income from business or practice of profession, provided that their gross receipts from business or practice of profession and other non-operating income do not exceed P3 million during the taxable year. Once the taxpayer elects to use the eight percent option, it cannot be amended for the current taxable year. Late filing of income tax returns may result in interest and surcharges.