Which ITR Form Applies to You
Last updated: 2026-07-09 Summary:
- Which income tax return you file depends on who you are (individual or corporation) and, for individuals, how you’re taxed (rate option and deduction method).
- Individuals land on 1701A (the shorter form) or 1701 (the long form); corporations file 1702.
- eKapital has a dedicated workspace for each — this guide points you at the right one. Confirm your eligibility with your CPA before you commit to a rate option or deduction method.
Picking the return is the first fork in filing income tax, and getting it wrong means redoing the work in a different form. This guide is a router, not a rulebook: it describes the categories and maps each to the eKapital workspace. It does not publish the rate schedules, income thresholds, or eligibility limits that decide which category you actually qualify for — those change, and they’re a conversation to have with your CPA.
Step 1 — Individual or corporation?
Section titled “Step 1 — Individual or corporation?”- A corporation (or an entity taxed as one) files the annual Form 1702. eKapital’s workspace covers the regular-corporation return, 1702-RT. Jump to File your annual ITR.
- An individual — sole proprietor, professional, freelancer, or an employee with a side business — files a 1701-series return. Continue below.
Step 2 — For individuals, how are you taxed?
Section titled “Step 2 — For individuals, how are you taxed?”Two choices shape which individual return you use:
The rate option. Eligible self-employed individuals and professionals can generally choose between the graduated rates and a flat-rate option (commonly called the 8% option). Whether you qualify for the flat option depends on your registration and income — confirm with your CPA.
The deduction method (this applies under the graduated rates): the Optional Standard Deduction (OSD) or itemized deductions. OSD is a fixed, computed deduction that needs no receipt-by-receipt support; itemized means claiming your actual, substantiated expenses. eKapital includes a Tax Deduction Advisor (Tax → OSD vs Itemized Advisor) that compares the two side by side for your year and flags which comes out ahead — a useful gut-check before you decide.
Step 3 — Which individual return?
Section titled “Step 3 — Which individual return?”| Your situation | Return | eKapital workspace |
|---|---|---|
| Income purely from business/profession, using the 8% option or graduated with OSD | 1701A | Form 1701A |
| Mixed income (compensation and business/profession), or using itemized deductions, or other complex cases | 1701 (long form) | Form 1701 |
| Mixed-income taxpayers where the mixed-income variant applies | 1701-MS | Form 1701-MS |
| Any self-employed individual, each quarter (Q1–Q3) | 1701Q | Form 1701Q |
The practical split: 1701A is the shorter annual form for people whose income is purely from business or profession and who use a single simple method (the 8% option or graduated-with-OSD). 1701 is the long form for everything more involved — you have compensation income alongside a business, you’re claiming itemized deductions, or your situation needs the fuller schedule set. If in doubt, your CPA will confirm which one your registration and income require.
Whichever annual form applies, the quarterly return is 1701Q, filed for the first three quarters (the fourth quarter is settled on the annual return). See File your quarterly ITR.
Don’t confuse income tax with VAT or percentage tax
Section titled “Don’t confuse income tax with VAT or percentage tax”The 1701/1702 family is income tax. Your business taxes are separate returns on their own calendars:
- VAT-registered? You also file the quarterly VAT return, 2550Q — see Filing BIR Form 2550Q.
- Non-VAT? You file the quarterly percentage tax return, 2551Q, instead.
These sit alongside your income tax return, not inside it. The BIR filing deadlines checklist lays out the whole calendar.
See also
Section titled “See also”Salamat — thanks for the feedback!