How to File BIR Form 1701Q : A Step-by-step Guide for Self-Employed Individuals and Sole Proprietors

When someone mentions Income Tax, the first thing that pops up in people’s heads is the Annual Income Tax Return which is filed each year on April 15. But, sometimes taxpayers often forget that they will also need to file income tax quarterly through BIR Form 1701Q

What is BIR Form 1701Q

BIR Form 1701Q or Quarterly Income Tax Return for Self-Employed Individuals, Estates, and Trusts, is an income tax return filed by self-employed individuals engaged in the practice of their profession or in a sole proprietorship.

This form is filed every 15th of May, August, and November every year.

Who are required to file BIR Form 1701Q

According to BIR’s guidelines, this must be accomplished and filed in triplicate by the following individuals:

  1. A resident citizen engaged in trade, business, or practice of profession within and without the Philippines.
  2. A resident alien, non-resident citizen, or non-resident alien individual engaged in trade, business, or practice of profession within the Philippines.
  3. A trustee of a trust, guardian of a minor, executor/administrator of an estate, or any person acting in any fiduciary capacity for any person, where such trust, estate, minor, or person is engaged in trade or business.

In summary, you will need to file Form 1701Q if you’re earning income outside of employment such as a professional (e.g. freelancer, doctor), a self-employed individual, a sole proprietor, or a trustee.

If your business is a partnership or corporation, then you will have to file BIR Form 1702Q.

I’m earning less than ₱250,000 annually

Under the new TRAIN law, those who earn less than ₱250,000 annually are exempt from paying income tax returns.  So if you fall under this bracket, you don’t have to pay your quarterly ITR — BUT you still have to file.

Having said that, we do recommend that you still file your Quarterly ITRs and consistently comply. As we said previously in an earlier article, imagine needing to have an ITR and then having to explain how tax exemptions work to whoever you’re talking to. Yeah, good luck.

Check out the new Income Tax Table under TRAIN. Take note that the rates will go lower in 2023.

My annual income is more than ₱250,000

The TRAIN law gives you two options for filing and computing your taxes. You can either follow the 3% percentage + income tax (use the graduated income tax table) or use the new 8% Gross Receipt Tax.

Now, the 8% Gross Receipt Tax might sound easier for you, but keep in mind that it’s not for everyone. To know if you’re making the right choice, check out this tax calculator that we made for you.

How to compute your Quarterly Income Tax dues

Before you begin, you’ll need to check whether you’re on the 8% Income Tax Rate or the Graduated Income Tax Rate. The easiest way to do this is to check your Certificate of Registration from the BIR. This will indicate which tax schedule you’re on.

I’m on the 8% Income Tax Rate

The first thing you’ll need to know is whether your earnings come solely from your business or profession, or if your earnings come from both compensation (basically, if you have an employer) and business/profession.  After which, you can apply the formula below applicable to you:

Income Solely from Business / Profession

Total Income Tax Due = 0.08 * (Gross Sales - ₱250,000)

Mixed Income Earner

Total Income Tax Due = (0.08 * Gross Sales) + Tax Due on Compensation

As you can see, the ₱250,000 deduction is NOT applied for Mixed Income Earners. The reason for this is because the ₱250,000 has already been deducted from the tax due based on compensation so it no longer applies to the tax from your business.

I’m on the Graduated Income Tax Rate

If you’re on the Graduated Income Tax Rate, you’ll need to check first whether you’re on Itemized Deduction or Optional Standard Deduction (OSD).

Here’s the difference between the two if you’re confused:

  • OSD – This allows you to claim a deduction of 40% from your gross sales or receipts for the quarter.
  • Itemized Deduction – You have to identify and deduct all the ordinary and necessary expenses from your gross income. These expenses must attribute to the development, management, and operation of your business like travel and salaries.

Take note that neither of these options is available for you if you opt for the 8% IT rate

Now, both of the deductions have different formulas for computing your taxable income so check your Certificate of Registration to confirm which one applies to you.

With that being said, calculating your tax payable for Graduated Income Tax Rate takes two steps:

  1. Compute your taxable income
  2. And, based on the taxable income, refer to the tax table for how much tax you’ll need to pay

Formulas for Taxable Income

Itemized Deduction
Taxable Income = Gross Sales - Gross Purchases
Optional Standard Deduction
Taxable Income = Gross Sales * 60%

Computing for Tax Payable

After calculating your taxable income, you will need to refer to the tax table below for your tax dues.

train tax table

Deadlines for filing BIR Form 1701Q in 2022

Quarter 1: January to MarchOn or before May 15
Quarter 2: April to JuneOn or before August 15
Quarter 3: July to SeptemberOn or before November 15

Your Annual Income Tax Return will include your 4th quarterly ITR filing. That’s why there’s no Quarter 4 deadline.

Remember, the BIR doesn’t give extensions to these deadlines. Therefore, taxpayers are encouraged and expected to file as early as they can to avoid the usual inconveniences during the last day of filing.

How to fill up BIR Form 1701Q

Step 1

Fill out Part I of BIR Form 1701Q. This includes your basic information such as your TIN, registered name, registered address, the line of business or occupation, and other applicable information.

Step 2

Before filling out Part III, you will need to accomplish Part V of the form first. You will find this on page 2.

Fill in Schedule I if you’re on the Graduated IT rate

BIR Form 1701Q Part 5

Fill in Schedule II if you’re on the 8% Flat IT rate.

bir form 1701q part 5 schedule 2

Step 3

Fill out Schedule III if you have any tax credits or payments

bir form 1701q part 5 schedule 3

Step 4

Add in your Tax Payable on Line 63. Deduct your Tax Due from Schedule I or II with the Total Tax Credits/Payments from Schedule III to compute this.

Step 5

Go back to Page 1 of the form and fill out Part III (Total Tax Payable). Refer to your inputs in Part V to know what to write down in this section.

bir form 1701q part 3

Step 6

Save the form, submit, and pay if you have any tax dues.

And that’s how you fill out your quarterly income tax return!

What are the attachments required for filing

Here are the documents you’ll need to prepare:

  1. Certificate of Income Tax Withheld at Source (BIR Form 2307), if applicable.
  2. Certificate of Income Payments not Subjected to Withholding Tax (BIR Form 2304) if applicable.
  3. Duly approved Tax Debit Memo, if applicable.
  4. Previously filed return, if an amended return is filed for the same quarter.

Where do I file my BIR Form 1701Q

First, you must file your income tax return first using eBIR Forms and print out copies of the form (with the attachments). After that, submit the forms to any Authorized Agent Bank (AAB) located within the territorial jurisdiction of your Revenue District Office. Present your accomplished BIR form 1701Q with the requirements and your payment. The teller of the AAB or the RDO officer will give you a copy of your stamped and validated form.

For “No Payment” returns, you only have to attach the required documents to your BIR form 1701Q. You will also receive a copy of your stamped and validated form.

If your place doesn’t have any AABs, you can file this directly with the Revenue Collection Officer or duly Authorized City or Municipal Treasurer of the RDO.

The easier way to file and pay your Quarterly ITR

Let’s admit it. The computations and filling up of forms can be quite tedious. The submission of attachments are a nightmare, too (since we need to input it one by one)!

Fortunately, there is Taxumo, a web-based tax filing app that lets you skip the manual computing of tax dues and accomplishing of BIR form 1701Q.  Instead, you would only need to enter your income and expenses, and you get your tax dues auto-calculated in real-time. 

The BIR form 1701Q is also auto-generated so there’s no need to manually fill out and print forms. The best part is that with a click of a button, you could submit your taxes online through the app. Taxumo also submits the attachments (2307s) for you!

You can watch our webinar on how you can file Form 1701Q online through Taxumo below:

Are there penalties for late filing

Absolutely. Apart from your tax due, you have to pay a 25% surcharge, a 20% interest per annum, and a compromise penalty. If you choose to neglect to file the return, there is a penalty of 50% of the tax due.

Refusal to pay penalties will be referred to the appropriate office for criminal action, so make sure that you pay your taxes on time.

You may also want to check out our other articles below:
Hungry for more? Visit our Taxumo blog HERE.  

67 thoughts on “How to File BIR Form 1701Q : A Step-by-step Guide for Self-Employed Individuals and Sole Proprietors”

  1. Good day! I would like to inquire. I have this property of my parents which I registered last May 2018 for rent. I fall out to 1701Q form subject to 8% option tax. Those rental units (4units) earn for a total of P 13,500.00 per month or P 162,000.00 annually. Am I still subject to 8% option tax? Should I pay the 8% tax quarterly based on my quarterly gross receipts? Thank you in advance.

    1. If you’re earning less than P3M / year then yes you could still opt for the 8% tax. At any point you exceed P3M though, you’ll have to switch to VAT + Graduated Income Tax. 🙂

      1. Hi, I am currently registered as non vat. I am on a Graduated income tax rate. Now, how would I know if I’m on an Itemized deduction or OSD? My small business is a retail outlet of LPG.

        1. Determining the deduction method depends on you and you need to declare it on your first tax filing. If your business excpenses are less than 40% of your gross revenue then you may opt to OSD but if your expenses are greater than 40% of your revenue then you may opt to choosing Itemized deduction and need to declare all expenses and make sure those expenses have receipts. 🙂

  2. In filing for 1701q at 8 % of gross sales, can I deduct P62,500 from gross sales for the quarter. Such amount is equal to a quarter of the P250,000 allowable deduction for the 8% gross sales for the year. Thank you very much.

    1. Hi Federico, that’s not really how income taxes work so you won’t be able to do that. You’ll actually deduct the whole 250K every filing. Each quarter income tax filing is not just specific to the quarter before it — it shows your income/expenses for the whole year until the quarter you’re filing. So you’ll eventually reach a quarter when deducting 250K will still result in a taxable income. By that time, you’ll pay taxes na.

      I would bet though that your time is worth much more than having to struggle with having to fill out the form properly. I would highly recommend you file through Taxumo – we take care of all of the complexities for you so you can just “fire and forget” 🙂

  3. Im engaged in small trading with annual income of 195,000 php.

    i forgot to zero file my 1701q. how much is the penalty for this?

    thank you

    1. Who can help me with this. I’m about to file my 1701Q but i don’t have any sales to report for now. Do I still need to provide attachments in the ALPHALIST DATA SYSTEM AND VALIDATION MODEL? Thank you.

  4. I am a professional management consultant under the 8% IT rate. I have zero income in the January to March, 2020 quarter. I did not file the Alphalist Dat file. Should i prepare and submit the Alphalist DAT file even if I have zero income during the first quarter? I have prepared and filed the 1701Q (Validated OK) last June 8 but until today I have received the confirmation/ acknowledgement receipt.

    Thank you.
    Ben de Leon

      1. Hi, is the P1,000 penalty fee for late filing standard? As I understood it, whether you have high sales or none, your penalty will only be P1,000? Please advise. Thank you!

    1. Hi Jomari. You’re already incurring penalties if you fail to file. As mentioned in the blog post above, you still need to file even if you have zero revenue. If you don’t have sales, you will simply indicate that you have zero income for the quarter.

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  7. hi there… just a quick question.. hope you can clarify… in my settings, i opted to take the 8% Tax option… the thing is, i just noticed that i have been filing both the forms 2551Q quarterly, AND the 1701Q quarterly as well… is this correct? do i remove the 2551Q from my settings and just have the 1701Q? i hope you can clarify … thank you!

  8. hi there… i have been a taxumo subscriber for a few months now. just a quick question… i hope you can clarify… in my settings, i opted to take the 8% Tax option… the thing is, i just noticed that i have been filing both the forms 2551Q quarterly, AND the 1701Q quarterly as well… is this correct? or should i just remove the 2551Q from my settings and just file the 1071Q? is that ok and will i need be in trouble with this. hope you can clarify … thank you!

  9. Hi! I just would like to ask if there is really in need to submit the form of 1701q even if there is no payment? Bec when I went to our RD,the officer said that there is no need to come to the office for submission if there’s no payment . Filing and sending through email is already okay. Is this true? Thanks for the reply.
    God bless

  10. Ma. Teresa C. Espineli

    Good evening. I have filed 1701Q thru ebirforms. Unfortunately, I filed it one day late and the bank refused to accept it and advised me to file another one with computation of penalty. How shall I do it when I already filed it online? Do I have to file another one with computation of penalties?

  11. hi, we are a partnership operating 2 different franchise, registered on diff RDO due to location. The 1st has the 000 – as the first company, the 2nd franchise has the 001, on another RDO and franchise is not same with the 1st. based on the COR of the 1st business – income tax should be filed, 1702Q, however, the 2nd business COR has no Income tax, only percentage tax. Does this mean we have to combine both business and the filing will be on the 1st franchise only? pls help. thanks

  12. Hi, im a newbie, i filed my 1701Q late this 2 quarter by e-bir form, and made payment thru online by gcash, i waited for email confirmation, do they include the penalty online or i need to report personally to the BIR office?

    1. There is no automatic computation of penalty when you filed late and submitted online. Submit a late file fee using 0605 form (amount depend on your income) usually its p1k for low income.

  13. Hello! Can I ask if I will be exempted even though I am in the graduated tax (OSD) if my taxable income is below 250000? And if it will exceed how do I compute it? Is it the excess from 250000 and 20%?

  14. I can’t find in my certificate if I pay 8% or not where can we exactly find it because there is no indication how much is the rate. You should put an example in your blog like the picture and encircle it like so. Please thank you

  15. hi. can i change my method of deduction from itemized to OSD from1701Q filing? no payment. Can I ammend the form? thanks.

  16. Why is quarterly income tax based on annual income? This is the part that confuses me a lot.

    Does this mean to say that I’m paying for tax for my income on 3rd quarter 2020- to 2nd quarter 2021 on the 2nd quarter 2021?
    And therefore, 4th quarter 2020 – to 3rd qtr 2021 on 3rd qtr 2021?

    Or should I be basing the annual income from the previous year but compute my quarter tax using my quarterly income?

    Hope you can give me some insight!

    1. Hi Kaye! Quarterly ITR is based on your quarterly earnings. So your Q1 income tax will be based on your Q1 earnings (from January to March) and so forth.

      Please let me know if I’ve answered your question properly!

      1. Hi there, my question is if I paid for my tax dues for Q1 Q2 and Q3, when 1701A comes (annual), the taxes I paid for the 3 quarters will be credited or deducted from the 1701A tax due, right? Because with 1701A, I have to put in all my gross income for the year, I just want to know that I am not paying again the taxes that I already paid from previous quarters. Thanks.

        1. Yes annual Income tax forms like 1701A is a summary of all your income and tax payments for the whole year including the previous 3 quarters. If the past quarter filings are already filed through Taxumo, this is readily factored in the computation of your annual ITR. If the past records are filed externally, you can input in past quarter payments on the filing steps of the annual ITR 🙂

  17. Hi! Question po, when should I file my 1701Q for the 2nd Quarter of 2021? I read under section 128 of tax code, as amended, that it should be filed within 25 days after the taxable quarter. Its already 26th of july, will I be penalized? Thank you very much 🙂

    1. Hi Fidelito! In order for you to be able to file your 1701Q via Taxumo, you need to create a Taxumo account. If you need further guidance on how to do this kindly send us a message at Our Customer Representatives will be happy to assist you. 🙂

  18. Hi, i filed my 2Q 170Q1 today, however when i checked there is mistake on the amount…so I filed another version the same day. Please help advice if this is ok. Thanks!

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  20. Hi,
    I need to file the 1701Q via on line. I am not sure which site I have to go to.
    I am a Jeepney operator who’s income is not more than 250K per annum at all.
    I used to have someone doing it for me but I am now doing it myself as it costing me money more than the task itself. I just need to some assistance, someone told me to just file it and get a confirmation. I still don’t understand where to send it on line. Please assist. thank you kindly.

  21. Hi. I am a compensation income earner but I also teach as a sideline. I received my first pay as teacher this September 2021 (3rd quarter). It appears that such income was an honorarium which means it could be deemed as income derived from the practice of a profession. The school withheld 10% tax from my honorarium.

    I am registered with the BIR as a pure compensation income earner. I have no COR yet but I am planning to get one next year.

    Should I file a 1701Q by November 15, 2021?

    Hope you can help. Thank you.

  22. Celestial Jay Garcia Lastima

    In cases whereas the self-employed started his business after the first quarter of the year, will he/she still be eligible for the 8% preferential tax rate?

    Fri, Nov 19, 10:16 PM (2 hours ago)
    to contact_us

    1.Ano ang dapat gamitin ng isang business na SOLE PROPRIETOR/NON VAT/BMBE (Barangay Microbusiness Enterprise)/graduated income tax rate === na ebir form package? v 7.6 or v 7.9.2?

    2.Kapag ang isang business ay SOLE PROPRIETOR / NON VAT / BMBE (Barangay Microbusiness Enterprise) / graduated income tax rate === required prin ba na magfile ng 1701q (quarterly income tax return) at 1701(annual income tax return) kahit under ng BMBE (Barangay Microbusiness Enterprise)?

    3. Ano ang mga required na e file ng isang business na SOLE PROPRIETOR/NON VAT/BMBE (Barangay Microbusiness Enterprise)/graduated income tax rate sa ebir?

    4.ano ang mga benefit ng pagiging isang BMBE (Barangay Microbusiness Enterprise) sa isang SOLE PROPRIETOR/NON VAT/graduated income tax rate na business ?

    5.ano ang dapat gamitin ng isang business na SOLE PROPRIETOR/NON VAT/BMBE (Barangay Microbusiness Enterprise)/graduated income tax rate === ebir o efps?

    1. Hi Avelino,

      Please find our responses below:

      1. You should file using the latest form from BIR. With Taxumo we always file our users’ forms using BIR’s latest forms.
      2. Yes you are still required to file the 1701Q/1701A forms though with 0 tax dues.
      3. To determine the forms you need to file you need to be registered with BIR and check the COR they will provide.
      4. As far as I know, as a BMBE, the advantage is that you do not need to pay income taxes BUT you still need to file it.
      5. Usually ebir, efps is usually used by big companies.

  24. Hi sir, I closed shop last October due to flooding from typhoon Maring last October, 2021. I still have to file my 1701A 2021. Should I still file for Annual registration form 0605 this January? Can I file form 1701q on the succeeding quarters of 2022 with no transactions declared just to keep it active? Is this allowed by BIR? I intend to resume my business next year when I fully recover from the loss, or should I file now for its closure with form 1905 and just apply for new registration in the future, which is better option sir? Hoping for your immediate response. Thank you for your advice sir.

    1. Hi Michael,

      Yes you still need to file your taxes since you did not file for business closure yet with BIR. Filing taxes with 0 income is better that not filing in that way you avoid any penalties in the future. Taxumo offers the Lifeline Plan where we automatically file your tax forms at 0.00 tax dues. If you wish to learn more about this, you may send us a message at 🙂

  25. Sir/mam ask ko lang po what to do kc i failed to file my quarterly IT year 2021, ofw po ako nag put ng business , dko po alam talaga ,i need help para ma renew ko po business permit

    1. Hi Veronica! With Taxaumo you can file your 2021 late filings and renew your annual registration for 2022. First thing you need to do is of course sign-up for a FREE Taxumo account. Upon signing-in you will be asked to arrange/edit your Taxumo settings based on your BIR registration. Fixing your profile is easy as there are tool tips and short videos you may watch to guide you.

      To find out how to get started with tax filing and payment and know about all the features of Taxumo that you can take advantage of, I invite you to join our FREE onboarding sessions.

      You may reserve a slot here:

      If you cannot make it to a scheduled session, here’s a recorded video for you to check out:

      Let us know if you need further help! 🙂

  26. Hello, I missed to file quarterly ITRs (self-employed) for 2021 but will file for annual ITR in Apr 2022. Do I have to pay penalties even if I will be filing the annual ITR by the due date? Thank you!

    1. Maria Millicent Dela Cruz

      Yes, most likely you will have penalties already. Quarterly Income Taxes should also be paid on or before the due date to avoid penalty fees.

  27. For filing 2551Q, we don’t have income this quarter Jan-Mar 2022 due to pandemic, but still in doubt to file zero return as there is this minimum quarterly gross receipts (section 117 of tax code) that I’m not sure if needs to follow.
    Any opinion?
    **Jeepney for hire-
    1. Manila and other cities P2, 400

    1. Hi Jonah! If it is stated in your COR that you need to file your 2551Qs, it is best that you file it so as to avoid penalties in the future.

      If you opted to the 8% income tax rate type, your Percentage taxes would be always at 0.00 so no need to worry about tax payables. 🙂

  28. sir good day!
    follow up question lang po regarding to sari sari store business and registered BMBE as per your answer to Mr. Avel.

    2. Yes you are still required to file the 1701Q/1701A forms though with 0 tax dues. how to fill up the 1701Q/1701A forms even on going the business.. Will i put all (0 ) zero the amount in all box..

    got confused for this. first time to file 1701

    thank you and much appreciate for your answer

  29. Hi,
    A blessed day! May I ask if it once or every quarterly filing to deduct the allowable reduction of 250,000? or hanggang kailan ba pwede to deduct the 250,000? Thank you.

  30. Hello, do you have a blog on how to file 1701Q if I missed the previous quarter? I’m about to file for my second quarter (Aug 15 due) but only realized that I missed the May 15 filing for Q1. I think I might have confused it with the Annual 1701 which I filed on Apr 15, and all this time thinking it was good to go. Thanks! It’s zero sales btw, I just need to file it until I get it closed. Thanks!

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