Fillable BIR Form 1702-EX

Understanding the BIR Form 1702-EX

There are several documents and forms that organizations in the Philippines must familiarize themselves with to ensure seamless business operations. One essential tool is the BIR Form 1702-EX. This key form is designed by the Bureau of Internal Revenue (BIR) to help corporations, partnerships, and other non-individual entities document and declare their income tax returns.

What Is the 1702 EX BIR Form?

The BIR Form 1702-EX is specifically designed for use by corporations, partnerships (excluding general professional partnerships), and companies that are exempt under the Tax Code, as amended (Sec. 30 and those exempted in Sec. 27(C)), and other laws, in filing their annual income tax return. This form is meant to keep the BIR updated about the income and financial activity of these entities. Corporations must attach the necessary documents that serve as a breakdown of the income tax return.

Importance of the BIR Form 1702-EX

The importance of properly filling and submitting the BIR form 1702-EX cannot be overemphasized. Being a crucial document for filing your annual income tax return, these forms assist the government in assessing whether your company is tax compliant. Moreover, with this form, you can avoid penalties associated with failure to declare income or inaccurately declaring income.

How to Fill Out BIR Form 1702 EX

To accurately fill out the BIR Form 1702-EX on PDFLiner, follow these specific steps:

1. At the top of the form, choose whether this is for a "Calendar" year or a "Fiscal" year, then enter the year ended in MM/20YY format.
2. Specify if this is an "Amended Return" or "Short Period Return" by marking the appropriate box with an "X".
3. Enter the "Alphanumeric Tax Code (ATC)" related to your corporation's tax status, which will typically be IC 011 for Exempt Corporation on Exempt Activities.
4. In "Part I – Background Information", input your "Taxpayer Identification Number (TIN)", followed by the "RDO Code".
5. Fill in the "Registered Name" and "Registered Address", ensuring all letters are capitalized and that you include the "ZIP Code".
6. Provide the "Date of Incorporation/Organization" in MM/DD/YYYY format along with your "Contact Number" and "Email Address".
7. Select your "Method of Deductions", choosing between "Itemized Deductions" and "Optional Standard Deduction (OSD)".
8. Under "Legal Basis of Tax Relief/Exemption", specify the applicable laws or regulations, and include any "Investment Promotion Agency (IPA)/Government Agency" details if relevant.
9. Document your "Registered Activity/Program" along with its "Registration Number" and the "Effectivity Date of Tax Relief/Exemption".
10. Proceed to "Part II – Total Tax Payable". Enter the "Tax Due" from Part IV Item 41. If there are "Total Tax Credits/Payments", record these amounts and calculate the "Total (Overpayment)" or "Amount Payable".
11. If an overpayment is indicated, select whether the amount is to be "Refunded", "Issued a Tax Credit Certificate (TCC)", or "Carried over as tax credit for next year/quarter".
12. In "Part IV – Computation of Tax", start by entering "Sales/Receipts/Revenues/Fees", then deduct any "Sales Returns, Allowances and Discounts" to find the "Net Sales/Receipts/Revenues/Fees".
13. Calculate "Gross Income from Operation" by deducting the "Cost of Sales/Services" from "Net Sales". Add any "Other Income" to determine the "Total Gross Income".
14. Choose between "Itemized Deduction" and "Optional Standard Deduction (OSD)" as your deduction method. If using itemized, total up the "Ordinary Allowable Itemized Deductions" and "Special Allowable Itemized Deductions".
15. Determine the "Net Taxable Income/(Loss)" and apply the "Tax Rate" to calculate the "Tax Due". Subtract any "Tax Credits/Payments" to find the final "Total (Overpayment)" or tax owed.
16. Finally, in "Part V – Tax Relief Availment", record any "Regular Income Tax Otherwise Due" and "Special Allowable Itemized Deductions" used to determine the "Total Tax Relief Availment".

Ensure to sign and date the form in the designated areas at the end, with the signature of both the President/Principal Officer/Authorized Representative and Treasurer/Assistant Treasurer.