The Bureau of Internal Revenue (BIR) has urged the public to file their annual income tax returns (ITRs) on time to avoid penalties that could reach up to P25,000 or more.
In a Facebook post, BIR Commissioner Romeo D. Lumagui Jr. emphasized the importance of early submission for the 2023 ITRs, urging taxpayers to file before the April 15, 2024 deadline.
The ITR filing requirement applies to self-employed individuals, business owners, mixed income earners, partnerships, and corporations.
“The deadline for the annual income tax return is approaching, so it's better if we can file early and not wait for the deadline on April 15,” Lumagui said in Filipino.
According to Lumagui, early filing will also avoid corresponding penalties for late submission.
Penalties for late filing include a 25 percent surcharge on the tax due in the ITR and an additional penalty of 12 percent per annum or one percent per month.
In cases where there is no tax liability, a penalty of P1,000 is applied if there are no sales.
However, if there are sales but no tax due, the penalty will range from P3,000 to a maximum of P25,000.
“Therefore, it is really better to pay early and not wait for the deadline because the corresponding penalty is significant if you are late in filing the annual income tax return,” Lumagui concluded.
Earlier, the BIR also announced that all its authorized agent banks (AABs) will operate on two Saturdays before the April 15 deadline.
According to a bank bulletin issued by the tax bureau, the 19 banking institutions that make up the AABs will be open for tax payments on April 6, 2024, and April 13, 2024.