BIR Form 1701 is the annual income tax return for self-employed people, mixed income earners, estates and trusts who can't use the simpler 1701A. If you have a salary plus side income, or you deduct your actual expenses instead of the 40% standard deduction, you file 1701 by April 15.
The BIR has two annual returns for people with business income, and picking the wrong one is one of the commonest filing slips. The rule is easier than it looks once you see what 1701A is for, because 1701 is everyone else.
1701 or 1701A: the deciding question
Form 1701A is only for individuals earning purely from business or profession who use either the graduated rates with the Optional Standard Deduction, or the 8% flat rate. So you need Form 1701 if any of these is true:
- You have mixed income, for example a salary from an employer plus freelance or creator income.
- You're on graduated rates and want to itemise your actual expenses instead of taking the standard deduction.
- You're filing for an estate or trust that's engaged in business.
| Your situation | Annual return |
|---|---|
| Purely self-employed, 8% rate | 1701A |
| Purely self-employed, graduated rates with OSD | 1701A |
| Purely self-employed, itemised deductions | 1701 |
| Employee with side income (mixed income) | 1701 |
| Estate or trust engaged in business | 1701 |
Who the BIR says must file it
The BIR's instructions say the return is filed regardless of the amount of gross income by resident citizens engaged in business or a profession, within and outside the Philippines; by resident aliens, non-resident citizens and non-resident aliens engaged in business in the Philippines; and by trustees, guardians and executors acting for an estate or trust in business.
Regardless of the amount is the phrase to notice. A small side income doesn't excuse you from filing.
Content creators and 1701
The BIR's RMC No. 97-2021 treats creators as self-employed: YouTube ad revenue, channel memberships, Super Chat, paid brand posts, brand ambassador deals and affiliate income are all business income. If you also have a job, you're a mixed income earner and Form 1701 is your annual return. Your salary is taxed at the graduated rates either way. For the business part, you can still choose the 8% rate if your business income stays within the 3 million pesos VAT threshold, or use graduated rates.
The rates you'll apply
| Taxable income (pesos) | Tax |
|---|---|
| Up to 250,000 | Nil |
| Over 250,000 to 400,000 | 15% of the excess over 250,000 |
| Over 400,000 to 800,000 | 22,500 plus 20% of the excess over 400,000 |
| Over 800,000 to 2,000,000 | 102,500 plus 25% of the excess over 800,000 |
| Over 2,000,000 to 8,000,000 | 402,500 plus 30% of the excess over 2,000,000 |
| Over 8,000,000 | 2,202,500 plus 35% of the excess over 8,000,000 |
These are the graduated rates in the BIR's current guide. Some older help pages online still show a table that tops out at 32%; that's an older schedule, so don't use it.
A worked example of the choice
Say you're employed and you also earn from a TikTok account and a couple of brand deals each year. Your employer handles the tax on your salary, but the side income still has to be declared. Because you have both, 1701A is out: it's only for people earning purely from business or profession. You file 1701, report the salary and the business income, and choose how the business part is taxed. If your business income stays within the 3 million pesos threshold, you can elect the 8% rate for that part; otherwise, or if you prefer, graduated rates apply with either the standard deduction or your itemised costs. The salary is taxed at graduated rates whatever you pick.
If a brand withheld tax from your fee and sent you a 2307, you claim that as a credit on the same return.
Can you switch between 1701 and 1701A?
Yes, year by year, because the form follows your situation. If you leave your job and earn only from your business, you may move to 1701A. If you take a job while keeping your freelance work, you move to 1701. What doesn't change mid-year is your income tax rate choice: the 8% option is made at the start of the year, on your first quarterly return or via Form 1905, so plan it in January.
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Deadlines and paperwork
- File the annual 1701 by April 15 for the previous year.
- During the year, file 1701Q by May 15, Aug 15 and Nov 15. There's no fourth-quarter 1701Q; the annual return covers it.
- Claim tax withheld by clients (your 2307s) in the Summary Alphalist of Withholding Tax through eSubmission.
- File electronically through eBIRForms or eFPS, as the EOPT Act expects, and pay at any authorized agent bank or online channel.
- If your annual sales and receipts pass 3,000,000 pesos, your books must be audited by an independent CPA.
Keep your books and records for 5 years from the day after the filing deadline. If the BIR asks about your itemised expenses, those records are your defence.
My verdict
If you're a mixed income earner, 1701 is your form, full stop. If you're purely self-employed, ask yourself whether itemising beats the simpler 1701A route; for most creators with few costs it doesn't. Either way, file every year, even when the income is small. My tax tips for the self-employed and this guide to declaring side income will help you keep it tidy.
Frequently asked questions
Who should use BIR Form 1701?
Mixed income earners, self-employed individuals who itemise deductions, and estates or trusts engaged in business. People earning purely from business on the 8% rate or the standard deduction use 1701A.
What's the deadline for Form 1701?
April 15 for the previous year's income.
I've got a job and a YouTube channel. Which form do I file?
Form 1701, because you have mixed income. Your salary is taxed at graduated rates; your channel income can use the 8% rate if it stays within the 3 million pesos threshold.
Do I need to file 1701 if my side income is small?
Yes. The BIR says the return is filed regardless of the amount of gross income.
Is there a fourth quarter 1701Q?
No. The quarterly returns cover the first three quarters, and the annual return covers the full year.
