BIR Form 1701Q Quarterly Income Tax Return
Updated October 16, 2026
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Definition
BIR Form 1701Q is the Quarterly Income Tax Return for individuals, estates and trusts. Self-employed individuals, professionals and mixed-income earners use it to declare their business or professional income and pay income tax for the first three quarters of the taxable year.
Need to file or download the return? See the [BIR Form 1701Q filing guide](/bir-forms/1701-q) for the form, deadlines and filing steps. The [BIR instructions](https://bir-cdn.bir.gov.ph/local/pdf/1701Q%20Guide%20Jan%202018.pdf) explain who must file. BIR Form 1701Q is the quarterly return for individual taxpayers with self-employment income. Under NIRC Sec. 74, as amended by RA 10963 (TRAIN), every individual receiving self-employment income, alone or together with salaries, files a declaration of estimated income on or before May 15 and pays the tax in installments, with the second and third installments due August 15 and November 15. The balance for the year is settled on the annual return. The return covers business or professional income only. A mixed-income earner reports salary on the annual return, not on Form 1701Q. Tax is computed under the graduated rates (with itemized deductions or the 40% optional standard deduction) or, if elected, at 8% of gross sales or receipts and other non-operating income. Purely self-employed taxpayers deduct ₱250,000 when computing this option; mixed-income earners cannot deduct that amount again from their business income. The 8% option is elected on the first quarter return and stays for the year. There is no fourth-quarter Form 1701Q. The full year is reconciled on the annual return, BIR Form 1701 or 1701A, due April 15 of the following year. Corporations do not use Form 1701Q; they file quarterly returns on BIR Form 1702Q.
Detailed explanation
Overview
BIR Form 1701Q is the Quarterly Income Tax Return for individuals, estates and trusts. Individuals with self-employment income, whether it is their only income or comes with a salary, declare their business or professional income and pay income tax in installments during the year (NIRC Sec. 74, as amended by RA 10963).
Who Must File
The following file BIR Form 1701Q:
- Sole proprietors and other individuals engaged in business
- Professionals and freelancers earning fees
- Mixed-income earners, for their business or professional income only
- Estates and trusts with business income
Employees earning purely compensation income do not file Form 1701Q. Corporations file BIR Form 1702Q instead.
Filing Deadlines
BIR Form 1701Q is filed for the first three quarters of the taxable year:
- First Quarter (Jan to Mar): Due by May 15
- Second Quarter (Apr to Jun): Due by August 15
- Third Quarter (Jul to Sep): Due by November 15
- Full year: settled on the annual return (Form 1701 or 1701A) due April 15 of the following year
Late filing or payment incurs a 25% surcharge plus 12% interest a year (NIRC Sec. 248 and 249), or a 10% surcharge and 6% interest for micro and small taxpayers (RA 11976; RR 6-2024).
Key Components of Form 1701Q
Income Section
The form reports gross sales or receipts from the business or profession for the period. Taxpayers on graduated rates subtract either itemized deductions or the 40% optional standard deduction, based on gross sales or receipts, to arrive at taxable income (NIRC Sec. 34). Compensation income and income subject to final tax are not reported here.
Tax Computation
Taxpayers on graduated rates apply the income tax table in NIRC Sec. 24(A)(2): 0% up to ₱250,000, 15% of the excess over ₱250,000, ₱22,500 plus 20% of the excess over ₱400,000, ₱102,500 plus 25% of the excess over ₱800,000, ₱402,500 plus 30% of the excess over ₱2,000,000, and ₱2,202,500 plus 35% of the excess over ₱8,000,000. Taxpayers who elected the 8% option pay 8% of gross sales or receipts and other non-operating income in excess of ₱250,000, in place of graduated rates and the 3% percentage tax; mixed-income earners get no ₱250,000 reduction on the business part.
Tax Credits and Payments
The return subtracts creditable withholding taxes shown on Forms 2307 from clients and the tax paid in earlier quarters of the same year.
Computation of Quarterly Tax Liability
Tax is computed on cumulative income from January 1 to the end of the quarter, and earlier quarterly payments are subtracted, so each return brings the year-to-date tax up to date. Any excess at year-end is claimed on the annual return as a refund or a credit against the next year's tax.
Electronic Filing
Taxpayers enrolled in the BIR's electronic filing and payment system (eFPS) file there. Others can file through eBIRForms or an authorized tax software provider and pay through authorized agent banks or online payment channels.
Common Errors and Compliance Issues
Frequent mistakes include:
- Forgetting to elect the 8% option on the first-quarter return
- Not crediting Forms 2307 received from clients
- Computing on the quarter's income alone instead of the cumulative year-to-date income
- Including salary in the quarterly return of a mixed-income earner
These errors can lead to deficiency assessments, surcharge and interest (NIRC Sec. 248 and 249).
Relationship to the Annual Return
Form 1701Q is an interim return. After year-end, the individual files the annual Form 1701 (self-employed with itemized deductions, mixed-income earners, estates and trusts) or Form 1701A (purely business or profession on OSD or the 8% rate) by April 15, reconciling the full year and crediting all quarterly payments.
Why it matters
Self-employed individuals and professionals must file Form 1701Q to pay income tax during the year and avoid penalties. Paying in quarterly installments spreads the tax over the year, and creditable taxes withheld by clients (shown on Form 2307) are credited each quarter. Late filing or payment adds a 25% surcharge and 12% annual interest, or 10% and 6% for micro and small taxpayers.
How it works
Determine Income for the Quarter
Add up gross sales or receipts from the business or profession from January 1 to the end of the quarter. If you use graduated rates, subtract itemized deductions or the 40% optional standard deduction (OSD) to get taxable income. Do not include compensation from an employer or income already subject to final tax.
Compute the Tax
On graduated rates, apply the income tax table to cumulative taxable income. On the 8% option, multiply cumulative gross sales or receipts in excess of ₱250,000 by 8%; mixed-income earners apply 8% without the ₱250,000 reduction. Subtract tax paid in earlier quarters of the same year.
Deduct Creditable Withholding Tax
Subtract the creditable withholding tax shown on the BIR Forms 2307 your clients issued for the period. Professional fees paid to individuals are usually withheld at 5% (gross income up to ₱3,000,000, with a sworn declaration) or 10%.
File and Pay by the Deadline
File and pay by May 15 (Q1), August 15 (Q2) and November 15 (Q3). If you elect the 8% option, signify it on the Q1 return. Keep your sales records, receipts and Forms 2307 for the annual return.
Examples
Freelance designer on the 8% option, Q1
Ana, a non-VAT freelance designer, earns ₱300,000 in gross receipts from January to March and elects the 8% option on her Q1 return. Tax is 8% × (₱300,000 minus ₱250,000) = ₱4,000. Her clients withheld nothing, so she pays ₱4,000 by May 15 (NIRC Sec. 24(A)(2)(b), Sec. 74).
Same designer, Q2 cumulative
By June 30, Ana's cumulative gross receipts reach ₱650,000. Cumulative tax is 8% × (₱650,000 minus ₱250,000) = ₱32,000. After subtracting the ₱4,000 paid in Q1, she pays ₱28,000 by August 15.
Professional on graduated rates with OSD, Q3
Carlo, a licensed architect, has ₱1,500,000 of cumulative gross receipts by September 30 and uses the 40% OSD. Taxable income is ₱900,000, and tax is ₱102,500 + 25% × (₱900,000 minus ₱800,000) = ₱127,500. His clients withheld 5%, or ₱75,000, and he paid ₱40,000 in Q1 and Q2, so he pays ₱12,500 by November 15.
Late payment by a micro taxpayer
Dina's Q1 tax due is ₱20,000, payable May 15, but she pays 30 days late. Her gross sales are under ₱3,000,000, so she is a micro taxpayer and pays a 10% surcharge (₱2,000) and 6% annual interest (about ₱99). A taxpayer outside the micro and small classes would pay a 25% surcharge (₱5,000) and 12% interest (about ₱197) (NIRC Sec. 248 and 249; RR 6-2024).
Employee with a side business on the 8% option, Q1
Ramon earns a salary and also runs an online shop with ₱150,000 of gross sales in Q1. As a mixed-income earner on the 8% option, he gets no ₱250,000 reduction on the business part, so his Q1 tax is 8% × ₱150,000 = ₱12,000. His salary is not reported on Form 1701Q; it goes on his annual Form 1701 (RR 8-2018).
Common misconceptions
- Myth: Form 1701Q is a corporate return.
- Fact: Form 1701Q is for individuals, estates and trusts. Corporations file their quarterly income tax returns on BIR Form 1702Q.
- Myth: Quarterly tax is only an estimate, so the amount paid does not matter until the annual return.
- Fact: Each quarter's tax is computed on actual cumulative income and must be paid by the deadline; underpaying or paying late draws surcharge and interest. The annual return then settles the balance for the year.
- Myth: A mixed-income earner reports salary on Form 1701Q.
- Fact: Form 1701Q covers only business or professional income. Compensation goes on the annual Form 1701, together with the business income for the full year.
- Myth: There is a fourth-quarter Form 1701Q due in February.
- Fact: Individuals file Form 1701Q only for the first three quarters. The fourth quarter is covered by the annual return due April 15 (NIRC Sec. 74).
- Myth: Creditable withholding tax automatically covers the quarterly tax.
- Fact: Taxes withheld by clients are credits against the tax due, and any balance must still be paid by the deadline. Keep every Form 2307 to support the credit.
Questions people ask
What is the deadline for filing BIR Form 1701Q?
Form 1701Q for the first quarter is due May 15, the second quarter August 15, and the third quarter November 15 (NIRC Sec. 74, as amended by RA 10963). There is no fourth-quarter Form 1701Q; the annual return, due April 15 of the following year, covers the full year.
Who is required to file Form 1701Q?
Individuals with self-employment income file it, including sole proprietors, freelancers, professionals and mixed-income earners for their business part, as well as estates and trusts with business income. Employees with purely compensation income do not file it. Corporations use Form 1702Q instead.
What is the difference between Form 1701Q and Form 1701?
Form 1701Q is the quarterly return for the first three quarters. Form 1701 is the annual return for self-employed and mixed-income individuals, estates and trusts, due April 15 of the following year; it reconciles the year and credits the quarterly payments. Individuals earning purely from business or profession who use the OSD or the 8% rate file the annual Form 1701A instead.
Do I still file Form 1701Q if I had no income that quarter?
Yes. A registered self-employed individual files Form 1701Q for each of the first three quarters even when no tax is due, because the return is required as a declaration of income for the period. Not filing can lead to penalties.
How is income tax computed on Form 1701Q?
On graduated rates, tax is computed on cumulative taxable income from January 1 (gross receipts less itemized deductions or the 40% OSD) using the income tax table, then reduced by earlier quarterly payments and creditable withholding tax. On the 8% option, tax is 8% of cumulative gross sales or receipts in excess of ₱250,000, less the same credits (NIRC Sec. 24(A)(2)).
What happens if I overpay in one quarter?
Because each quarter's tax is computed on cumulative income and earlier payments are subtracted, an overpayment carries into the next quarter's computation. Any excess left for the year is claimed on the annual return as a refund or as a credit against the following year's tax.
Can I file Form 1701Q online?
Yes. Taxpayers registered with the BIR's electronic filing and payment system (eFPS) file there, and others can use the BIR's eBIRForms or an authorized tax software provider, then pay through an authorized agent bank or online payment channel.
What penalties apply for late filing of Form 1701Q?
Late filing or payment incurs a 25% surcharge on the unpaid tax plus 12% interest a year from the due date until payment (NIRC Sec. 248 and 249). Micro and small taxpayers pay a 10% surcharge and 6% interest instead (RA 11976; RR 6-2024).
In practice
- Self-employed individuals and professionals file Form 1701Q three times a year, by May 15, August 15 and November 15.
- Taxpayers who want the 8% option must elect it on the first-quarter return; the election holds for the whole year (RR 8-2018).
- Freelancers collect Forms 2307 from clients every quarter so they can credit the tax withheld on Form 1701Q.
- Late filing triggers a 25% surcharge plus 12% annual interest, reduced to 10% and 6% for micro and small taxpayers.
- Books of accounts and records supporting quarterly returns are kept for five years from the day after the return's deadline (NIRC Sec. 235, as amended by RA 11976).
Next steps
Learn more
Self Employed Income Tax Calculator
Quarterly Tax Payment Calculator
Withholding Tax Calculator
BIR Form 1701 (Annual ITR For Individuals)
BIR Form 2307 (Withholding Tax Certificate)
BIR Form 1701A (Individual ITR)
Complete Guide To Self Employed Income Tax
How To File Quarterly Tax Returns
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Sources & References (1)
Primary sources and the laws, regulations, and official issuances this page relies on. Links open the recorded source documents or references.
- Bureau of Internal Revenue. “BIR Form 1701Q (Quarterly ITR: individuals).” bir.gov.ph. Bureau of Internal Revenue, BIR Form 1701Q. Source checked .