No, the old TIN cards are still valid. The BIR’s issuance of the new TIN card with the new design does not mean the old TIN cards are invalid. TIN IDs do not have expiration and do not need to be replaced  since the taxpayer’s TIN is still the same.

You will only be required to secure the new TIN card under either of the following instances

• Being issued a TIN for the first time
• Updating the name of a married female
• Changing of registered address
• Replacement for lost/damaged TIN card

My employer already secured my tax identification number but I also want to have a TIN ID. How can I request for the TIN card? What are the requirements?

You need to submit a request to the Revenue District Office (RDO) where you have been registered. You will also need to submit the following requirements:

1. Duly accomplished BIR Form No. 1905
2. 1 copy of 1×1 ID picture to be pasted on the TIN card in the presence of the BIR personnel
3. Any government-issued ID

Keep in mind also that you need to make a personal appearance – no authorized representative is allowed to secure the TIN card on your behalf.

If you lost or damaged your TIN card, you will need to file a request with the RDO as well and submit the following requirements:

1. Affidavit of Loss, in case of replacement
2. P100 replacement fee

The BIR is issuing new Certificates of Registration (COR). Is my old COR still valid? 

Yes, Certificates of Registration printed in the old design are also valid, as long as the information in that certificate is still up-to-date. You will only be require to replace your old COR if there are updates or changes in the face of the COR.

In addition, electronic CORs generated by Philippine Business Hub (PBH) and Online Registration and Update System (ORUS) which are printed by taxpayers are also valid since the electronic COR bears a QR code that can be validated when scanned.

Reference: BIR Revenue Memorandum Circular 58-2023

– Rappler.com

If the goods and services are “directly and exclusively used” in the registered project of the REE, then they will be subject to zero-rated VAT for a maximum period of 17 years from registration. 

To avail this, you are no longer required to apply for BIR approval. Instead, you need to get VAT zero-rating certification from the investment promotion agencies such as the Board of Investments, PEZA, BCDA, TIEZA, etc. However, note that the BIR can still conduct post-audit investigation/verification to ensure that the goods are indeed directly and exclusively used in the registered project or activity.

How can I tell if the purchases are ‘directly and exclusively used’ in the registered project? What are the expenses that are not considered as “directly and exclusively” used in the registered project?

Under Revenue Regulations No. 21-2021, “directly and exclusively used in the registered project” refers to those expenditures that are directly attributable to the registered project or activity without which the registered project or activity cannot be carried out.

Recently, BIR released Revenue Regulations No. 3-2023, which provided a non-exhaustive list of expenses that are not considered “directly and exclusively used.” These are: 

• janitorial services
• security services
• financial services
• consultancy services
• marketing and promotion
• services rendered for administrative operations such as human resources, legal, and accounting

However, if the taxpayer can prove that the purchase is “directly and exclusively used” in the registered project, then they can do so. To reiterate, “directly and exclusively used” means that those expenses are indispensable to the project or activity.

Are health maintenance organization (HMO) plans provided to employees of REEs considered ‘directly and exclusively used’ in the registered project?

That depends on the tasks that the employee is performing. If the employee is performing tasks that are “directly and exclusively” involved in the operation of the company’s registered project or activity and the HMO plan is part of their compensation package, then it can be considered “directly and exclusively used” which is zero-rated.

I already filed an application for VAT zero-rating, but the BIR still has not yet acted on my applications. Are my transactions already subject to zero-rated VAT?

All applications for VAT zero-rating shall be treated as VAT zero-rated from the date of filing of such application. However, a post-audit will be conducted by the BIR to prove that purchases of goods and services are directly and exclusively used in the registered project.

In case the purchase of goods and services are used in the registered project and in administrative operations, what should be the treatment if a proper allocation cannot be determined?

The suppliers can only be able to rely on the VAT zero-rating certificate provided by the REE, however, if a proper allocation could not be determined by the REE, the purchase of goods and services shall be subject to 12% VAT.

If you are still having problem understanding your taxes, you may #AskTheTaxWhiz! Just download TaxWhizPH Mobile app and use the unli-chat feature or you may book a consultation with our experts. – Rappler.com

Any person who issues fake receipts violates Sections 254, 255, and 267 of the Tax Code which are summarized as follows:

“SEC. 254. Any person who willfully attempts to evade or defeat any tax or its payment shall be punished by a fine not less than Five hundred thousand pesos (P500,000) but not more than Ten million pesos (P10,000,000) and suffer imprisonment of not less than six (6) years but not more than Ten (10) years.”

“SEC. 255. Any person who willfully fails to pay such tax, make such return, keep such record, or supply correct and accurate information, or withhold or remit taxes withheld, or refund excess taxes withheld on compensation shall be punished by a fine of not less than Ten thousand pesos (P10,000) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.”

“SEC. 267. Any person who willfully files a declaration, return or statement containing information which is not true and correct as to every material matter shall, upon conviction, be subject to the penalties prescribed for perjury under the Revised Penal Code.”

Also, if a certified public accountant is found to be involved in issuing fake receipts, the CPA certification or license would be automatically revoked or canceled upon conviction.

I’ve read that the BIR has lost P25.5 billion revenues due to fake receipts, but are there specific corporations that BIR identified that issued fake receipts?

Yes, the BIR has identified the following top 4 corporations that allegedly issue fake receipts to evade taxes:

1. Buildforce Trading, Incorporated
2. Crazykitchen Foodtrade Corporation
3. Decarich Supertrade, Incorporated
4. Redington Corporation

According to the BIR, these companies sold fake receipts for falsified transactions, which were then used by their buyers to claim expenses or to deduct from their VAT obligations.

Since the BIR is now trying to eliminate false transactions, who are the persons of interest for these? Does the BIR have any plans to seize them?

The BIR considers the (1) buyers, (2) sellers and (3) CPAs as their persons of interest in which a CPA and the sellers of such fake receipts are already facing criminal cases.

Also, the BIR launched its priority programs including Run After Fake Transactions or RAFT which was created for the purpose of auditing and investigating the buyers of fake receipts.

Do you have any questions regarding your receipts and transactions? Download TaxWhizPH Mobile App and use the unli-chat feature. You may also book a consultation with our consultants through the app. – Rappler.com

Look for another accountant who will not ask you to violate the Tax Code.   

If your accountant does falsify any report or statement, he may face penal liabilities under Section 257 of the Tax Code, to wit: “any financial officer or independent CPA who (1) willfully falsifies any report or statement related to an examination or audit, or renders a report which has not been verified by him personally or under his supervision, or (2) certifies financial statements of a business enterprise containing an essential misstatement of facts would face penal liabilities.”

Also, a person who examines the books of accounts of a taxpayer, but is not a Certified Public Accountant (CPA), will also be liable. The same goes for persons who offer to sign and certify the financial statements of a business without actual audit.

Violators are punished by a fine of P50,000 to P100,000, and imprisonment of two to six years. CPAs who commit the same violations will automatically lose their CPA license upon conviction.

What can I do if a BIR officer attempts to extort money from me in exchange for not subjecting my business to an actual audit?

You may file a complaint against the erring BIR officer. 

Under Section 269 of the Tax Code, an employee of the Bureau of Internal Revenue (BIR) who extorts taxpayers face the following penalties:

• Fine of P50,000 to P100,000
• Imprisonment of 10 to 15 years
• Perpetual disqualification from holding public office, from voting, and from participating in any public election

Other than extortion, BIR officers who accept bribes (e.g., demand/accept “fees” that are not authorized by law, demand/accept compromise without the authority of law, etc.) as well as those who offer to submit a report or assessment without examining the taxpayer’s books of accounts are liable to the same penalties under Section 269.

The same penalties apply for deliberately failing to act on the application for refunds within the prescribed period.

Taxpayers need to protect themselves from these unscrupulous CPAs and BIR officers. Tolerating or engaging with these dishonest accountants would only result in more headaches, penalties, and compromises. As taxpayers, we need to know our rights and obligations, in order to make sure that we are not taken advantage of. If you are interested to learn more, you can consult with us. Just download the TaxWhizPH Mobile App for free and book a consultation. – Rappler.com

At the launch on April 18, Tuesday, Security Bank senior vice president John David Yap said that the bank has identified MSMEs as a priority segment.

“In the Philippines, MSMEs comprise 99.5% of all businesses, and are responsible for close to 65% of total employment, contributing to 40% of GDP. However, these businesses remain underserved by formal banking institutions with high balance requirements for their business accounts and challenging loan application client journeys,” Yap, who also heads the Business Banking Segment, said.

The universal bank intends to capture 20% of MSMEs in the next three to five years. Yap said that the goal was for the Business Banking Segment to be a “relevant contributor in Security Bank in terms of revenues.”

“From a market standpoint, we hope the Business Banking Segment … will fall in the top three of banks where MSMEs will take their financial services,” he said.

Under the Business Banking Segment, MSME clients can open a BusinessPlus checking account that comes with a checkbook, pass book, statement of account, and up to five MasterCard Debit Cards. The account has a minimum maintaining balance of P25,000, lowered from the bank’s previous P50,000 requirement. The maintaining balance is also waived for the first three months of account opening.

BusinessPlus clients also have free access to DigiBanker to view their account balance and pay bills online.

Security Bank is also offering loan products, such as a collateralized Business Mortgage Loan that allows clients to loan up to P30 million with monthly installments over 20 years. The bank also has a collateral-free Business Express Loan up to P5 million.

“We have very simple requirements. For sole proprietorship, we only need a DTI (Department of Trade and Industry) registration, and for corporation and partnership, we require the registration with SEC (Securities and Exchange Commission). Along with that, we require the borrower to sign up an application form with us and submit the proof of their business, such as ITR (income tax receipts) and bank statements,” Marjorie Esplana, head of Business Banking Segment sales, said.

Esplana added that they can render a decision in 15 days for a Business Mortgage Loan and five days for a Business Express Loan.

In profiling clients, Yap clarified that the bank typically transacts with those enterprises with at least two years of track record, highlighting that they are “very selective” with startups. 

“The smallest loan right now is P500,000. So, anyone who does not qualify for a P500,000 loan, we suggest that they get served by our retail banking people because they’ll be underwritten as individuals,” Yap said. “It’s tough. If we underwrite them, baka babagsak sila sa criteria namin (they might fail our criteria), especially if they don’t meet the P500,000 cutoff.”

MSMEs comprise the overwhelming majority of businesses (99.58%) in the country, according to 2021 data from the DTI. Of the 99.58%, micro enterprises constitute 90.54% of total establishments, followed by small enterprises at 8.63%, and medium enterprises at 0.41%.

Under Philippine law, an enterprise is classified as micro if it has up to P3,000,000 in assets, small if it has between P3,000,001 to P15,000,000 in assets, medium if it has P15,000,0001 to P100,000,000 in assets, and large if it has P100,000,001 and above in assets. – Rappler.com

The potential of Filipino MSMEs to grow is stronger than ever. Here’s what can be done to support them.

The usual deadline is April 15 of every year. However, since April 15, 2023 will fall on a weekend, the filing of the annual income tax return this year would be on the next working day, which is April 17, 2023.

What are the payment options available for the payment of income tax payable?

Payment for the taxes payable can be made through Authorized Agent Bank (AAB), or to any Revenue Collection Offices (RCOs), or through Electronic Payment (ePayment) Gateways as follows:

1. Development Bank of the Philippines (DBP)
2. Land Bank of the Philippines Portal (LBP)
3. Union Banks Online Portal and InstaPay
4. Tax software provider like GCash, Maya, MyEG

Taxpayers who will pay manually may pay through the RCOs in cash up to P20,000 or in check regardless of the amount.

What are the qualifications that will allow me to file my ITR through eBIRForms if I am an eFPS filer?

If you are an eFPS filer, you may file your ITR through the eBIRForms due to the following reasons:

1. Enrollment to BIR-eFPS and eFPS-AAB is still in process
2. The enhanced forms are not yet available in eFPS
3. Unavailability of BIR-eFPS covered by a released advisory
4. Unavailability of eFPS-AAB system as informed by the AAB

The tax returns filed through eBIRForms shall no longer be required to be filed through the eFPS.

Who are the taxpayers qualified to file their Annual Income Tax Returns manually?

The following taxpayers with “no payment AITRs” may file manually with the RDO in three copies and in legal paper size:

1. Senior Citizens (SC) or Persons with Disabilities (PWDs) filing for their own returns
2. Employees deriving purely compensation income from two or more employers, or not qualified for substituted filing
3. Employees who opted to file their own ITR for the purpose of promotion, loans, scholarships, foreign travel requirements, etc. 

What will be the process for submission of the electronically filed ITR and its attachments?

For electronically filed ITR without attachments required, there is no need to submit the tax return to the LTS/RDO. The filing reference number (FRN) email confirmation from eBIR will serve as proof of filing.

However, filed ITR with required attachments may be submitted through Electronic Audited Financial Statements System or to the LTS/RDO where the taxpayer is registered within 15 days from the date of deadline wherein only the attachments will be stamped as “Received.”

If you have other questions about your income tax return, you may download TaxWhizPH App for FREE via Play Store or App Store. – Rappler.com

In either case, you may have just fallen victim to digital fraud.

From phishing emails to third-party scams, fraudsters are finding ways to deceive people in the digital landscape. According to a report by TransUnion, the Philippines had the third-highest rate of suspected fraudulent digital transactions among all countries and regions analyzed in 2022. As much as 8.7% of digital transactions in the country that year were suspected to be fraudulent.

Although the number of digital fraud attempts in the Philippines has actually dropped by 18% since pre-pandemic levels in 2019, experts say the risk of fraud remains high.

“Despite the return to the pre-pandemic levels, the Philippines’ digital fraud rate still stands at a much higher level than the global average, leaving no room for complacency,” Amrita Mitra, chief operating officer at TransUnion Philippines, said in a statement.

Where digital fraud is happening

The cyberworld is vast, and fraud infiltrates it to varying degrees. Globally, TransUnion observed that digital fraud attempts hit the gaming industry – online sports betting, gambling, and the like – and retail industry the most.

The story, however, is different in the Philippines, where logistics tops the list of industries targeted by digital fraud. Since 2019, the logistics industry in the country has seen an explosion of suspected digital fraud, with fraud attempts increasing by 133%. 

The gaming and communities industries also saw a rise in fraud attempts, while the video gaming, retail, financial services, and telecommunities industries all saw a fall in fraudulent activity.

Here is the global rate of suspected fraud attempts among the 10 most targeted industries. The table below also shows the increase or decrease in the rate of attempted digital fraud in the Philippines from 2019 to 2022.

What digital fraud usually looks like

In a three-month period from September 2022 onwards, 71% of Filipinos said they had been targeted by digital fraud attempts through emails, phone calls, online messaging, or texts, according to a survey commissioned by TransUnion. Out of these, 11% of those surveyed admitted to falling victim to fraud. 

Here are the three types of fraud schemes most commonly experienced by Filipinos, according to the survey:

• Phishing (fraudulent emails, social posts, websites and QR codes) – 46%
• Smishing (fraudulent mobile text messages) – 46%
• Third-party seller scam – 33%
• Identity theft – 25%

Phishing and smishing, which have similar intentions, are both attempts by fraudsters to trick you into sharing valuable information, like account passwords, credit card numbers, or one-time passwords (OTP). The government has tried to crack down on smishing with the SIM Card Registration Act.

Meanwhile, third-party seller scams happen when fraudsters – who may pose as official resellers or even the official vendor – sell fake products through a legitimate website.

Identity theft occurs when fraudsters steal your personal information and use it to withdraw money from your bank account, or open a line of credit under your name, among other possible scams. (WATCH: PAK, Check! Ingat sa fake gov’t registrations, mga vebs!)

How digital fraud is being prevented

Louis Smith, Visa’s chief risk officer for Southeast Asia, observed that the nature of fraud has changed.

“Face-to-face fraud doesn't really happen anymore. It's all digital,” he said during a media roundtable. “As the fraudsters became more sophisticated and figured out ways to abuse that, we had to adapt.”

In response, digital payments companies have had to readjust their security measures, such as using tokenization. Rather than storing an individual’s valuable financial information clearly – like his or her card number and card security code – it is instead“tokenized” so that even if a fraudster obtains that data, it can’t be read or used outside of a particular online marketplace.

“Our 16-digit card numbers, when fully exposed, they're invaluable to a fraudster. They can be used anywhere. But when they're tokenized, we can control where it can be used, how it can be used, how long it can be used, who can use it,” Smith said.

According to Smith, Visa also employs artificial intelligence to screen every transaction using 500 variables to look for patterns of fraud. The Visa Advanced Authorization system then lets the merchant and bank know whether the transaction is safe or not – a process which happens in a second or less.

How to stay protected as a consumer

Even with these security measures, Smith emphasized that consumers still need to learn how to keep themselves safe.

“A massive tool in the process of protecting transactions actually is education – helping consumers understand that your bank will never fool you and ask you for your one-time PIN, but a fraudster would,” he said.

Here are some tips from Smith on how to keep your valuable information secure in the digital age:

1. Never share. Never share your one-time passcode or card number on a telephone or any sort of clickable link. Your bank will never send you a clickable link. Your merchant should never send you a clickable link asking you for your bank credentials.
2. Stay where you’re safe. Educate yourself about the type of sites that you’re shopping at and whether they’re safe. High-risk environments like gambling websites are where the majority of fraud occurs.
3. Don’t send valuable information over chat. Credit card details sent over an unsecured messaging app could be stolen. Sending a photo of your card could similarly be dangerous.
4. Treat your digital wallet as you would your physical one. You wouldn’t leave your credit card lying around or with someone else you don’t trust. Protect the digital version of your payment credentials in the same way.

Online buyers, beware! ‘Pasabuy’ scams target Filipinos abroad

– Rappler.com

If you avail the 8% income tax rate, your tax is computed based on the gross income in excess of P250,000. To do so, however, you need to signify your intention to elect the 8% tax rate on your income tax return for the first quarter of the taxable year. If you do so, the election of the 8% income tax rate is irrevocable and no amendment of the option shall be made for the said taxable year.

2. I’m an employee receiving a basic salary of less than P250,000 per year and receiving bonuses. Will I be subject to tax?

If your basic salary is less than P250,000 per year, then you are exempt from income tax. But since you are receiving bonuses, you need to keep in mind that there is a P90,000 threshold for bonuses. This means that if you receive more than P90,000 in bonuses, the excess will be subject to tax. Keep in mind also that your holiday pay, overtime pay, night shift differential pay, and hazard pay are all exempt from income tax, so you do not have to include them in your computation.

3. In relation to income tax on compensation, are de minimis benefits also covered with the P90,000 threshold?

No. The P90,000 threshold is only applicable to 13th month pay and other benefits. De minimis benefits are not included. These are the benefits that are considered de minimis benefits:

1. Monetized unused vacation leave credits not exceeding 10 days during the year
2. Monetized vacation and sick leave credits paid to government officials and employees
3. Medical cash allowance to dependents of employees, not exceeding P1,500 per semester of P250 per month
4. Rice subsidy of P2,000 or one sack of 50-kilogram rice per month amounting to not more than P2,000
5. Uniform and clothing allowance not exceeding P6,000 per annum
6. Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs, annual medical/executive check-up, maternity assistance, and routine consultations, not exceeding P10,000 per annum
7. Laundry allowance not exceeding P300 per month
8. Employees achievement awards in the form of a tangible personal property other than cash or gift certificate, with an annual monetary value not exceeding P10,000
9. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per annum
10. Daily meal allowance for overtime work not exceeding 25% of the basic minimum wage
11. Benefits received by an employee by virtue of a collective bargaining agreement and productivity incentive schemes provided that the total annual monetary value received from both CBA and productivity incentive schemes combined do not exceed ten thousand pesos P10,000 per taxable year

4. What is the treatment for the premium on health card paid by the employer for the rank and file and managerial or supervisory function?

Premium on health card paid by the employer for all employees, whether rank and file and managerial or supervisory, under a group insurance shall be tax exempt as clarified in RMC No. 96-2018, which was previously included as other benefits subject to the P90,000 threshold in RMC No. 50-2018. However, individual premiums paid for managerial or supervisory functions are still considered “fringe benefits” subject to fringe benefits tax.

5. What is minimum corporate income tax? What is the tax rate imposed for the MCIT?

The MCIT is a tax imposed on domestic corporations and resident foreign corporations beginning the 4th taxable year in which the corporation commenced its business operations. For the period July 1, 2020 to June 30, 2023, the MCIT rate is 1% of the gross income of a corporation. After that period, the MCIT rate would return to its usual 2%. 

You have to pay MCIT only if your tax liability under the MCIT is lower than your tax liability under the regular corporate income tax rates.  For example, when you incur significant losses such that your taxable income is zero, you will still have to pay the MCIT (which is 1%/2% of your gross income).If you have other questions about your income tax return, you may download TaxWhizPH App for FREE via Play Store or App Store. – Rappler.com

As an employee, it is possible that you no longer need to file any income tax return. Your employer should have already withheld the tax due from your monthly salary and remit the same to the BIR. This is known as “substituted filing” and has certain requisites for an employee to qualify:

1. Receives purely compensation income regardless of amount
2. Compensation from only one employer in the Philippines for the calendar year
3. Income tax has been withheld correctly by the employer (tax due equals tax withheld)

Employees who want to avail substituted filing need to signify their intent to adopt substituted filing by signing BIR Form No. 2316 that their employer would issue them. BIR Form No. 2316 serves as the proof that the proper taxes have been withheld from your salaries, and also proof of your income in lieu of an annual income tax return.

The employers will need to submit the duplicate copy of BIR form 2316 on or before February 28, alongside the Certified List of Employees Qualified for Substituted Filing of ITR. Once this list is stamped “Received” by the BIR, it is tantamount to substituted filing by the qualified employees.

If you do not qualify for substituted filing, however, then you will need to file BIR Form No. 1700. 

2. I have a business where I sell products online. What tax do I need to pay, and what form should I use?

How you pay and how much you pay will depend on whether or not you are doing your business as a sole proprietorship or as a corporation.

If your source of income is from sole proprietorship only, you are considered Self-Employed and would have to file either BIR Form No. 1701 or 1701-A, depending on the method of deduction that you will avail. You need to file a BIR Form No. 1701 if you are using itemized deductions, and BIR Form No. 1701-A if you are using either optional standard deductions (OSD) or the 8% flat income tax rate.

On the other hand, If you are earning both from sole-proprietorship and from employment you are considered a Mixed Income Earner and you’ll need to file BIR form 1701 regardless of the method of deduction you are using.

On the other hand, if your business is a corporation, then you will have to file BIR Form No. 1702-RT (if your corporation is subject to the regular corporate income tax), BIR Form No. 1702-MX (if your corporation is subject to multiple income tax rates or a special/preferential rate), and BIR Form No. 1702-EX (if your corporation is exempt from tax).

3. How can I file my tax returns? Do I have to go to the BIR and file manually?

There are three ways to file your tax returns and pay your taxes: manually, by using eBIRForms, or by filing through eFPS.

In Manual Filing, you can go to the BIR Revenue District Office (RDO) to get your forms there or you can also download the forms online and print it. Once you have the relevant BIR Form, you can fill it up and file it with the RDO that you are registered in. Note that you can only do Manual Filing if you have tax due. If you have no taxes due, you have to file a “No Payment” return online through eBIRForms.
In eBIRForms, you download the Offline eBIRForms from the BIR website, accomplish the relevant forms, and submit them online. If you want to do manual payment, you can print the return, along with the Tax Return Receipt Confirmation, and pay via an Authorized Agent Bank (AAB) under the jurisdiction of the RDO where you are registered. Note, again, that if you have no taxes due, you only need to file the “No Payment” return.

Taxpayers required to use eFPS should file and pay their tax due the eFPS facility in order to avoid unnecessary wrong venue of filing the return. 

On the other hand, you may also file your BIR Form 1701-A via TaxWhizPH Mobile app. You may download the app through Play Store or App store for a hassle free experience when filing your tax return.

To pay for your taxes due, taxpayers who file manually or use eBIRForms can pay manually by going to Authorized Agent Banks or, where not available, to the Revenue Collection Officer. Taxpayers may also pay via ePay Gateways (Land Bank, Development Bank of the Philippines, UnionBank, or through Taxpayer Software Providers such as GCash, Paymaya, or MyEG).

4. When is the deadline of filing Annual Income Tax Return?

The deadline for filing the Annual Income Tax Return is on April 17, 2023 since the original deadline, April 15, 2023, falls on a Saturday. Hence, it will be moved on its next working day. As for the payment of taxes, note that as provided under Bank Bulletin No. 2023-02, Authorized Agent Banks (AABs) will be open in the two Saturdays prior to the tax filing deadline (i.e., AABs will be open on March 25, 2023 and April 1, 2023). The AABs would also be extending their banking hours until 5PM from April 1 to 17, 2023.

– Rappler.com

1. I am a Harvard student with an F-1 student visa who arrived in the United States on July 6, 2022. Do I need to file a tax return even though I didn’t receive income from the United States? 

Yes. As an international student, you are considered a non-resident alien for tax purposes. Depending on whether or not you have taxes due, you will be required to file either Form 8843, Form 1040NR, or both. If you do not have any income to declare, you need to file Form 8843 for exempt individuals. Otherwise, you have to file Form 1040NR to declare your income.

2. What are the other documents that I need in filing my Form 8843? Do I need a Social Security Number or Individual Tax Identification Number?

If you have no income to declare, you only need to file Form 8843, but you will need the following documents as well: passport and visa documents. However, if you have income to declare, you will need, in addition to your passport and visa documents, your Individual Tax Identification Number (ITIN) or Social Security Number (SSS) for wages or compensation income.

3. If I have no income to declare and I need to file Form 8843, can I do it online or electronically? How do I file Form 8843?

Unfortunately, no. You need to file Form 8843 manually. Here’s the step by step process to follow:

4. Where to submit Form 8843?

After, completing the details in Form 8843, you can now mail the return to this address:

Department of the Treasury 
Internal Revenue Service Center 
Austin, TX 73301-0215

You can use this format to guide you in mailing your return:

5. Should I declare it if I receive a scholarship or grant for my research or project while I’m in the United States? What if I conduct the research or project outside the United States, will the tax rate and requirements be the same?

If you receive a scholarship or grant for your research and project and it is a US source required to cover your educational expenses like tuition fees, course-related expenses, such as  books, supplies, and equipment that are required for the courses at the eligible educational institution and you are a candidate for a degree then it is not required to be reported in the federal tax return and not subject to withholding tax. 

However, if part of the scholarship received does not constitute qualified education expenses like travel, room, and board, then it should be reported in Form 1040NR and is subject to 14% withholding tax or a lower treaty rate if you are holding an F, J, M, or Q visa. Other immigration status, it will be subject to a 30% withholding tax rate.

Note that If you received your scholarship outside the United States, then it is considered as foreign source income for tax purposes. Hence, since non-resident aliens are only liable for US source income, you will not have to report it for tax purposes.

6. As a Harvard student, are you still required to file an annual income tax return in the Philippines? 

Generally, my answer would have been, no. Overseas Filipinos are not required to file tax returns in the Philippines except if they generate income from the Philippines.

But since I earn professional income as a tax consultant or advisor at the Asian Consulting Group (ACG), I still file quarterly and annual tax returns. In fact, I just filed my annual income tax return on February 14, 2023 which is my way of expressing my love for our country and the official kickoff of our tax awareness campaign to remind everyone to file and pay their taxes correctly and on time. 

If you are in the Philippines, you may file your Annual Income Tax Return through TaxWhizPH Mobile App. – Rappler.com