BIR Form 1701Q is the quarterly income tax return for self-employed people, mixed income earners, estates and trusts. You file it three times a year, by May 15, August 15 and November 15, and the annual return covers the last quarter. Your first 1701Q is also where you can elect the 8% rate.
Quarterly filing is the habit that separates freelancers who sleep well in April from those who don't. 1701Q spreads your income tax across the year, so the annual return is mostly a tidy-up.
Who files 1701Q
The BIR's instructions say it's filed regardless of the amount of gross income by resident citizens in business or a profession, by resident aliens, non-resident citizens and non-resident aliens in business in the Philippines, and by people acting for estates and trusts in business. In practice that means every registered freelancer, online seller and creator, including those with a job on the side.
The BIR's influencer circular, RMC No. 97-2021, settles the creator question: platform and brand income is business income, and individual influencers are self-employed.
The quarterly calendar
| Quarter | Covers | 1701Q due |
|---|---|---|
| 1st | January to March | May 15 |
| 2nd | April to June | August 15 |
| 3rd | July to September | November 15 |
| Fourth | October to December | No 1701Q; file the annual 1701 or 1701A by April 15 |
If you're on graduated rates and not VAT-registered, you also file percentage tax on 2551Q, due April 25, July 25, October 25 and January 25. It's a different form with different dates, so don't let one remind you of the other; diary both.
The 8% choice lives here
This is the part most people skip. If you're in your first year of business and didn't tick the 8% option on Form 1901, your first 1701Q (or your first 2551Q) is where you can still signify it. In later years, you either file Form 1905 at the start of the year or signify it on your first quarterly return. Get past that first return without choosing and you're on graduated rates for the rest of the year.
The 8% rate is open to people earning purely from business or profession whose gross sales and other non-operating income stay within 3 million pesos. On the 8% route, purely self-employed people take off a 250,000 pesos reduction before applying the rate.
Filing 1701Q step by step
- Total your income for the quarter, cumulatively from January. Quarterly returns build up across the year rather than starting from zero each time.
- Apply your chosen method: 8%, or graduated rates with the 40% Optional Standard Deduction or itemised costs.
- Deduct tax you've already paid in earlier quarters of the same year.
- Claim tax clients withheld from you (your 2307s) in the SAWT through eSubmission.
- File electronically in eBIRForms or eFPS and pay through any authorized agent bank, RCO or online channel by the due date.
Before your very first 1701Q
Register your books of accounts. The BIR says books must be registered before the deadline for your first quarterly or annual income tax return, whichever comes earlier. For most new freelancers that's the first 1701Q. Do it in ORUS and print the QR stamp.
What happens if you skip a quarter
Missed quarters don't vanish; they surface when you file the annual return, along with penalties for filing late. It's far easier to file a small 1701Q on time, even with modest income, than to explain three missing ones. If you earned nothing in a quarter, file anyway; the obligation doesn't depend on the amount.
If you're also employed
Mixed income earners file 1701Q for the business side only; your employer keeps withholding on your salary as usual. You report your freelance or creator income on 1701Q each quarter, and the salary and business income come together on Form 1701 at the end of the year. If you've chosen the 8% rate, it applies to the business income alone; the salary stays on graduated rates. Keep the two sets of records separate from the start, because untangling them in April is miserable.
A simple quarterly routine
This is the system I'd suggest to anyone starting out, and it takes less than an hour a quarter:
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- On the first day after each quarter ends, export your platform and client payment reports and update a running income total from January.
- Collect any 2307s from Philippine clients within the 20 day window after the quarter.
- Work out the tax using the same method you elected, and deduct what you paid in earlier quarters.
- File and pay the week before the deadline, never on the day, because portals get busy.
- Save the confirmation, payment reference and your workings in one folder per quarter.
By April, the annual return is mostly copying totals you already have.
My verdict
Set four calendar reminders a year and keep a running income total from January. If you want the 8% rate, decide before your first quarterly return, not after. For the bigger picture on what to keep aside, my tax tips for the self-employed and the guide to declaring side hustle income are a good place to start.
Frequently asked questions
When is BIR Form 1701Q due?
May 15 for the first quarter, August 15 for the second and November 15 for the third. There's no fourth-quarter 1701Q.
Do I file 1701Q if I earned nothing that quarter?
Yes. The BIR's instructions say the return is filed regardless of the amount of gross income.
Can I choose the 8% rate on 1701Q?
Yes. In your first year you can signify it on your first 1701Q or 2551Q if you didn't on Form 1901, and in later years on your first quarterly return or via Form 1905.
Is 1701Q cumulative?
Yes, quarterly returns build up from January, and you deduct tax paid in earlier quarters of the same year.
How do I claim tax my clients withheld?
List the Form 2307 credits in the Summary Alphalist of Withholding Tax through eSubmission when you file.
Do mixed income earners file 1701Q?
Yes, for the business income. Your employer keeps withholding on your salary, and both come together on the annual Form 1701. If you elected the 8% rate, it applies only to the business part.
