BIR Form 1700 Annual ITR for Pure Compensation
Updated June 13, 2026
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Definition
BIR Form 1700 is the Annual Income Tax Return specifically designed for employees who receive pure compensation income (salary, wages, bonuses) with no other income sources. Employees with one employer whose tax was withheld correctly do not file it, because the employer's BIR Form 2316 counts as their substituted filing; Form 1700 is for employees who do not qualify, such as those with two or more employers in the same year.
BIR Form 1700 is the primary annual income tax return for Filipino employees whose only source of income is compensation from employment. Employees whose taxable income does not exceed ₱250,000 are not required to file (NIRC §51(A)(2)(a)). Employees with one employer for the year whose tax due equals tax withheld also do not file, since the employer's BIR Form 2316 is their substituted filing (NIRC §51-A). The form is required when substituted filing does not apply, for example when the employee had two or more employers during the year, when tax withheld does not equal tax due, or when the employee's spouse falls under either case (RR 11-2018). The form captures your total compensation income for the tax year, including basic salary, 13th month pay, overtime pay, bonuses, and other taxable benefits. It also accounts for mandatory contributions (SSS, PhilHealth, Pag-IBIG) and calculates your final tax liability after considering withholding taxes already deducted by your employer. The return is due on or before April 15 of the following year, so the return for taxable year 2025 was due April 15, 2026 (NIRC §51(C)(1)). The form applies the graduated rates under the TRAIN Law.
Detailed explanation
Overview
BIR Form 1700 is the Annual Income Tax Return (ITR) prescribed by the Bureau of Internal Revenue for individual taxpayers earning purely compensation income (salaries, wages, bonuses, and allowances from employment). Employees who do not qualify for substituted filing use it to reconcile the tax withheld by their employers under NIRC §79 against their actual tax for the year (NIRC §51, §51-A).
It is filed by private and government employees alike. It serves two primary purposes: (1) to report total compensation received during the taxable year, and (2) to claim a refund if excess tax was withheld, or to pay additional tax if withholding was insufficient.
Who Must File Form 1700
BIR Form 1700 is mandatory for:
- Employees who had two or more employers during the year, at the same time or one after another.
- Employees whose tax due does not equal the tax withheld.
- Employees with other non-business income not subject to final tax, on top of compensation.
- Employees whose spouse falls under any of the cases above (RR 11-2018).
Individuals whose taxable income does not exceed ₱250,000 are not required to file (NIRC §51(A)(2)(a)), and employees with one employer whose tax was correctly withheld rely on the employer's BIR Form 2316 as substituted filing (NIRC §51-A).
Key Components of Form 1700
Income Section: Taxpayers report total compensation received from all employers during the taxable year. This includes basic salary, 13th-month pay, bonuses, hazard pay, and other allowances that constitute taxable compensation under NIRC §32(A).
Deductions: Form 1700 is for compensation income, which cannot be reduced by itemized deductions or the optional standard deduction. What is left out of taxable compensation: SSS, PhilHealth and Pag-IBIG contributions, 13th month pay and other benefits up to ₱90,000, and de minimis benefits. Personal and dependent exemptions were repealed by the TRAIN Law from 2018; the first ₱250,000 of taxable income is taxed at 0% instead.
Tax Computation: Taxable compensation is gross compensation minus the excluded items above. Income tax uses the table in effect from 2023: 0% up to ₱250,000; 15% of the excess over ₱250,000; ₱22,500 + 20% of the excess over ₱400,000; ₱102,500 + 25% of the excess over ₱800,000; ₱402,500 + 30% of the excess over ₱2,000,000; and ₱2,202,500 + 35% of the excess over ₱8,000,000 (NIRC §24(A)(2)(a), as amended by TRAIN Law RA 10963).
Withholding Tax Credit: The form reconciles the total income tax withheld by the employer(s) throughout the year against the computed annual tax liability. If liability exceeds withholding, additional tax is due; if withholding exceeds liability, the excess can be refunded.
Filing Requirements and Deadlines
Form 1700 must be filed on or before April 15 of the following year (NIRC §51(C)(1)). Late filing with tax due incurs a surcharge of 25% plus interest at 12% per annum (NIRC §248, §249).
Filing may be done electronically via eBIRForms or manually with an authorized agent bank or the taxpayer's Revenue District Office (RDO).
Refunds and Additional Tax
If the total withholding tax exceeds the computed annual tax, the employer normally returns the excess in the year-end adjustment. Otherwise the taxpayer may claim a refund from the BIR in writing within two years from payment of the tax (NIRC §204(C), §229).
If the computed tax liability exceeds withholding, the taxpayer must pay the difference by the filing deadline to avoid surcharge and interest penalties.
Common Schedules and Attachments
Form 1700 typically requires supporting documents: (1) BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) from each employer, showing gross compensation and tax withheld; and (2) proof of payment of any additional tax due.
Special Considerations
Multiple Employers: Employees with income from more than one employer must aggregate all compensation and file a single Form 1700. Each employer issues a separate BIR Form 2316; the taxpayer combines all withholding amounts on the ITR.
Non-Resident Aliens: A nonresident alien engaged in trade or business in the Philippines (including one staying more than 180 days in a calendar year) is taxed at graduated rates on Philippine-source compensation and cannot use substituted filing, so files Form 1700 (NIRC §25(A); RR 11-2018).
Government Employees: Civil service employees file Form 1700 using the same rules as private-sector employees. Their tax is withheld by the employing agency, which acts as withholding agent.
Why it matters
For employees who cannot use substituted filing, Form 1700 reconciles the tax withheld by all employers against the actual annual tax on combined compensation. Two employers that each withheld correctly on their own payroll usually under-withhold on the combined amount, and Form 1700 is where the difference is paid. Failing to file a required return can bring a surcharge, interest and a compromise penalty. Excess withholding of an employee is normally refunded by the employer in the year-end adjustment, and a refund claim with the BIR must be filed within two years from payment (NIRC §229).
How it works
Gather Income and Withholding Documents
Collect BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) from each employer, showing gross compensation and total withholding tax for the year. If employed by multiple companies, gather all certificates. Verify amounts match your payslips.
Calculate Taxable Income and Tax Liability
Sum all compensation from all employers. Take out SSS, PhilHealth and Pag-IBIG contributions, 13th month pay and other benefits up to ₱90,000, and de minimis benefits. Apply the graduated rates to the rest (the first ₱250,000 is taxed at 0%). Compare the result with the total withholding shown on the BIR Form 2316 from each employer.
Complete Form 1700 and File
Fill in all required fields on BIR Form 1700, including personal information, taxable and non-taxable compensation, and tax withheld. Attach the BIR Form 2316 from each employer. File electronically via eBIRForms or manually with an authorized agent bank or your RDO by April 15.
Claim Refund or Pay Additional Tax
If your tax exceeds withholding, pay the difference when you file, on or before April 15. If withholding exceeds your tax, the return shows the overpayment; a refund claim with the BIR must be filed within two years from payment of the tax (NIRC §204(C), §229).
Examples
Single Employee, ₱600,000 Annual Salary
Maria Santos earns ₱600,000 annually from one employer. Her SSS, PhilHealth and Pag-IBIG contributions total ₱38,400 for the year, so her taxable income is ₱600,000 minus ₱38,400 = ₱561,600. Tax due is ₱22,500 + 20% × (₱561,600 minus ₱400,000) = ₱22,500 + ₱32,320 = ₱54,820. If her employer withheld exactly ₱54,820, nothing more is due, and with a single employer she can rely on substituted filing through BIR Form 2316 (NIRC §24(A), TRAIN Law RA 10963).
Married Employee with Two Dependents, ₱1,200,000 Salary
Juan dela Cruz has taxable compensation of ₱1,200,000 from one employer. Being married with two children changes nothing, since personal and dependent exemptions were repealed from 2018. Tax is ₱102,500 + 25% × (₱1,200,000 minus ₱800,000) = ₱202,500. If his employer withheld only ₱180,000, tax due does not equal tax withheld, so substituted filing does not apply; he files Form 1700 and pays the ₱22,500 difference (NIRC §24(A)(2)(a), §51-A; TRAIN Law RA 10963).
Employee with Two Employers, ₱800,000 Combined Income
Anna Reyes has taxable compensation of ₱500,000 from Employer A, which withholds ₱42,500 (₱22,500 + 20% × ₱100,000), and ₱300,000 from Employer B, which withholds ₱7,500 (15% × ₱50,000). Total withholding is ₱50,000. Tax on the combined ₱800,000 is ₱22,500 + 20% × ₱400,000 = ₱102,500, so she still owes ₱52,500. She files one Form 1700 and attaches both BIR Forms 2316 (NIRC §24(A), §79).
Government Employee, ₱450,000 Annual Compensation
Pedro Reyes, a civil service employee, has taxable compensation of ₱450,000. Tax is ₱22,500 + 20% × ₱50,000 = ₱32,500. If his agency withheld ₱38,000, it should refund the ₱5,500 excess in the year-end adjustment. With one employer and tax due equal to tax withheld after that adjustment, his BIR Form 2316 serves as substituted filing (NIRC §24(A), §51-A; TRAIN Law).
Employee Below Filing Threshold, Claiming Refund
Rosa Santos has taxable compensation of ₱200,000 from one employer. All of it falls in the first ₱250,000 taxed at 0%, so her tax is ₱0 and she is not required to file. If her employer withheld ₱15,000, the employer should refund it in the year-end adjustment; otherwise she can claim it from the BIR in writing within two years from payment (NIRC §51(A)(2)(a), §204(C), §229).
Common misconceptions
- Myth: Only employees earning above ₱250,000 must file Form 1700.
- Fact: Earning above ₱250,000 does not by itself require filing. An employee with one employer for the year whose tax was correctly withheld does not file at all, while an employee with two employers in the year files even if each salary is modest (NIRC §51(A)(2)(a), §51-A).
- Myth: The 13th-month pay is not taxable and should not be reported on Form 1700.
- Fact: 13th month pay is reported on Form 1700. Together with other benefits it is excluded from gross income up to ₱90,000 a year, and only the excess is taxable compensation (NIRC §32(B)(7)(e)).
- Myth: If my employer withheld tax, I do not need to file Form 1700; the employer has already settled my tax.
- Fact: This is true only under substituted filing, that is, one employer for the whole year and tax due equal to tax withheld. Employees with two or more employers in the year, or whose withholding was wrong, must file Form 1700 (NIRC §51-A, §79; RR 11-2018).
- Myth: I can claim itemized deductions on Form 1700 without receipts.
- Fact: Employees cannot claim itemized deductions or the optional standard deduction against compensation at all. Form 1700 only leaves out mandatory contributions, exempt benefits up to ₱90,000 and de minimis benefits (NIRC §34).
- Myth: Form 1700 is only for private-sector employees; government employees file a different form.
- Fact: Government employees file the same BIR Form 1700 as private-sector employees. The withholding process is handled by their agency, but the ITR form and rules are identical (NIRC §51-A).
Questions people ask
What is the deadline for filing BIR Form 1700?
Form 1700 must be filed on or before April 15 of the year following the taxable year (NIRC §51(C)(1)). Late filing incurs a 25% surcharge plus 12% annual interest on any tax still owed (NIRC §248, §249).
Can I file Form 1700 if I earned less than ₱250,000?
You are not required to file if your taxable income does not exceed ₱250,000 (NIRC §51(A)(2)(a)). If your employer withheld tax anyway, the employer should refund it in the year-end adjustment. Above ₱250,000, you still do not file if you had one employer and the tax was correctly withheld (NIRC §51-A).
What documents do I need to file Form 1700?
You need BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) from each employer. If paying additional tax, keep proof of payment. Birth and marriage certificates are no longer needed, since personal and dependent exemptions were repealed in 2018 (TRAIN Law RA 10963).
How long does it take to receive a refund after filing Form 1700?
Employees usually get excess withholding back from the employer in the year-end adjustment, not from the BIR. A refund claimed from the BIR has to be filed in writing within two years from payment of the tax (NIRC §204(C), §229).
Is the 13th-month pay exempt from income tax on Form 1700?
Yes, up to ₱90,000 a year for 13th month pay and other benefits combined, from all employers. That amount is reported as non-taxable compensation, and only the excess is added to taxable compensation (NIRC §32(B)(7)(e)).
What happens if I do not file Form 1700 by the deadline?
Late filing incurs a 25% surcharge on any tax still owed, plus 12% annual interest, and a compromise penalty may be imposed. Failing to file a required return is also a violation of the Tax Code (NIRC §248, §249, §255).
Can I claim a refund if I filed Form 1700 late?
Yes, as long as the written refund claim is filed within two years from payment of the tax (NIRC §204(C), §229). Any tax still owed on a late return carries a surcharge and 12% annual interest from the original due date (NIRC §248, §249).
In practice
- Employers are required to give each employee BIR Form 2316 by January 31 of the following year; employees need it before filing Form 1700 to report accurate withholding amounts.
- Many employers now provide digital copies of BIR Form 2316 via email or employee portals, speeding up the filing process and reducing paper handling.
- eBIRForms lets employees fill out and submit Form 1700 online; any tax due is then paid through an authorized agent bank or an electronic payment channel.
- Employees who file late (after April 15) face a 25% surcharge plus 12% annual interest on any additional tax due, making timely filing financially important.
- An employee who resigns mid-year should get BIR Form 2316 from the old employer on the day the last pay is released, and hand it to the new employer for the year-end computation.
- A claim for refund of excess tax must be filed with the BIR within two years from payment of the tax; after that the claim is barred (NIRC §229).
Next steps
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Sources & References (3)
Primary sources and the laws, regulations, and official issuances this page relies on. Each citation links directly to the issuing authority’s document.
- Bureau of Internal Revenue. “BIR Form 1700 (Annual ITR: pure compensation income earners).” bir.gov.ph. Bureau of Internal Revenue, BIR Form 1700. Accessed .
- LawPhil Project (Arellano Law Foundation). “NIRC §51, §24(A): individual income tax filing.” lawphil.net. NIRC of 1997 (RA 8424), Sec. 24/51 as amended by RA 10963. Accessed .