How to File the Annual Income Tax Return (ITR) with Audited Financial Statement (AFS) for Partnership & Corporation ? 2026

How to File the Annual Income Tax Return (ITR) with Audited Financial Statement (AFS) for Partnership & Corporation ? 2026

 

 

 

as of  march 19, 2026 , from ChatGPT:

Filing the Annual Income Tax Return (ITR) with Audited Financial Statements (AFS) for a partnership or corporation in the Philippines (2026) follows a structured process under the Bureau of Internal Revenue. I’ll break it down clearly so you can actually execute it.

I. How to File the Annual Income Tax Return (ITR) with Audited Financial Statement (AFS) for Partnership & Corporation ? 2026 

 

 

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🧾 1. Know What You Need to File

For Partnerships & Corporations:

• ITR Form:

  • BIR Form 1702-RT – Regular (subject to normal income tax)

  • BIR Form 1702-EX – If exempt

  • BIR Form 1702-MX – Mixed income

• Attachments:

  • Audited Financial Statements (AFS)

  • Independent Auditor’s Report

  • Notes to FS

  • Statement of Management Responsibility (SMR)

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📅 2. Deadline (Important)

• April 15, 2026 → Filing of Annual ITR

• April 30, 2026 → Submission of AFS (if required separately)

⚠️ If you are using eAFS, the AFS is uploaded online (no need for manual submission).

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💻 3. Prepare Before Filing

You need:

• Books of accounts finalized

• Trial balance

• Adjusting entries

• CPA to audit financial statements (required for most corporations/partnerships)

👉 AFS must be signed by a licensed CPA.

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🧮 4. Compute Tax Due

Basic formula:

Taxable Income = Gross Income – Deductions
Income Tax = Taxable Income × Tax Rate

• Corporate tax rate: usually 25% (or 20% for small corporations if qualified)

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🖥️ 5. File the ITR (Step-by-Step)

OPTION A: eBIRForms (offline + submit online)

1. Download eBIRForms

2. Fill up:

   • Company details

   • Financial data

3. Validate the form

4. Submit online

5. Receive email confirmation from BIR

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OPTION B: eFPS (for large taxpayers / required entities)

Use Electronic Filing and Payment System:

1. Log in

2. Fill up Form 1702

3. Submit

4. Pay online through accredited banks

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💸 6. Pay the Tax Due

You can pay via:

• Online banking (eFPS)

• GCash / Maya (if supported)

• Authorized Agent Banks (AABs)

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📤 7. Submit AFS (Important Part)

OPTION A: eAFS (Recommended)

Upload via eAFS System:

Required files (PDF):

• AFS (signed)

• ITR (stamped/validated)

• Proof of payment

• SAWT (if applicable)

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OPTION B: Manual Submission (if required)

Submit to your RDO:

• 3–4 copies of AFS

• Stamped ITR

• Attachments

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📎 8. Additional Attachments (if applicable)

• SAWT (Summary of Alphalist of Withholding Taxes)

• BIR Form 2307 (Creditable withholding tax)

• Schedules

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⚠️ Common Mistakes to Avoid

• ❌ Late filing (penalties apply)

• ❌ Missing CPA signature in AFS

• ❌ Wrong tax form (1702-RT vs MX)

• ❌ Not uploading via eAFS

• ❌ Mismatch between ITR & AFS

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🧠 Important for YOU (Based on your situation)

Since you mentioned:

“I do not have salary in my small business partnership”

👉 That’s correct:

• The partnership files its own ITR (1702)

• You personally file separate ITR (Form 1701) only if you have other income

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👍 Simple Summary Flow

1. Prepare books → Audit → AFS

2. Fill up Form 1702 (eBIRForms/eFPS)

3. File & pay by April 15

4. Upload AFS via eAFS

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 II. Which is more convenient, eBIRforms or eFPS?

 

Short answer:
👉 For most businesses like yours → eBIRForms is more convenient
👉 For bigger/regular filers → eFPS is more convenient

Let me explain clearly so you can decide 👇

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⚖️ eBIRForms vs eFPS (Real Comparison)

🟢 eBIRForms (Most commonly used)

Best for: small–medium partnerships & corporations

👍 Advantages

• Easier to use (simple interface)

• You can prepare offline (no internet needed while encoding)

• Auto-computes tax

• No special approval needed (any taxpayer can use)

• Widely used by SMEs

👉 That’s why it’s considered “more accessible and convenient”

👎 Disadvantages

• Filing only (payment is separate)

• Windows-only software (medyo hassle)

• More manual steps (file → then pay → then upload AFS)

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🔵 eFPS (More advanced system)

Best for: large corporations / frequent filers

👍 Advantages

• All-in-one → file + pay in one system

• Fully online (no software install)

• Faster confirmation

• Available 24/7, real-time validation

👎 Disadvantages

• Not open to everyone (need BIR approval)

• Setup/enrollment is more complicated

• Usually required only for big taxpayers

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🧠 Practical Advice (Important for YOU)

Since you said:

small partnership trading business

👉 You should use eBIRForms

Why?

• You are likely a non-eFPS filer

• BIR actually designed eBIRForms for businesses like yours

• Less hassle vs applying for eFPS

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🔥 Simple Decision Guide

Situation	Use This
Small partnership / SME	✅ eBIRForms
Large corporation / high volume	✅ eFPS
Want simplest setup	✅ eBIRForms
Want all-in-one (file + pay)	✅ eFPS

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💡 My Honest Recommendation

For you:

👉 Stick with eBIRForms + eAFS

It’s:

• simpler

• standard for SMEs

• less risk of compliance issues 

  
  

III. Corporate Income Tax Rates (Philippines – 2026)

Under the CREATE Law:

🔵 25% (Regular Rate)

This applies if your company is NOT small.

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🟢 20% (Lower Rate – good news 😄)

You qualify for 20% corporate income tax if BOTH are met:

✅ 1. Net Taxable Income ≤ ₱5,000,000

AND

✅ 2. Total Assets ≤ ₱100,000,000

(excluding land where office is located)

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📊 Example

Case 1 (Qualified for 20%)

• Net income: ₱3,000,000

• Assets: ₱50,000,000

👉 Tax = 20% → ₱600,000

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Case 2 (Not qualified)

• Net income: ₱6,000,000 ❌ (exceeds 5M)

• Assets: ₱80,000,000

👉 Tax = 25% → ₱1,500,000

subukan yang theory na yan..

 

Several gas stations in P. Tuazon, Cubao replaced their LED price display with paper tags because three-digit figures could no longer fit after fuel breached the P100 mark on Wednesday, March 18. | via Maria Tan, ABS-CBN News

3.19.2026 1209am #onlinediary

 

medyo ang gulo na ng mundo now... need na talaga ng katuwang sa life.. pra naman me makayakap sa gabi at kasamang magtravel sa beach.. Need na talaga gumawa ng paraan pra magka jowa..

 

pero date to marry na dapat at sayang ang gasolina.. Dapat dun sas seryosohan at for long term relationship... if hindi naman pwede pakasalan sa future, prang tamad na tamad nako imeet at mageffort, specially now na 80 pesos na gasolina... tapos mahal narin toll.. hehehe

me theory si google na if gusto mo magkajowa, hanap ka ng new hobby at iba pang place na pwede ka makameet ng mga tao.. Hindi effective yung dating site.. puro mga beki sa dating site..

PRO pwede rin naman daw sa mga club at bars pero me theory si google at cici iF gusto mo makahanap ng serious partner sa mga bars & club.. pero dapat agahan mo... habang hindi pa lasing..

 

pag medyo late ka na daw kasi sa mga bars is lasing na mga chicks, hanggang one night stand or fling lang yun...

 

Eh kung pumunta ako sa mga bars & club usualy mga 3am na,. hahahah, pinakamaaga na yung 1am.. 

 

Now its time na agahan magchill at masubukan yang theory na yan..

HOW to Pay SSS Contributions ? Online & Walkin as of March 2026

 

  

In 2026, pay SSS contributions or loans by generating a Payment Reference Number (PRN) via the My.SSS portal or SSS Mobile App, then pay using GCash, Maya, ShopeePay, or bank apps (BPI, UnionBank). Over-the-counter payments are available at SSS branches, Bayad Center, or Cebuana Lhuillier. 

Steps to Pay SSS Contributions & Loans (2026)

1. Generate PRN: Log in to your My.SSS account and go to the "Payment Reference Number" module to generate a PRN for your contribution or loan.
2. Select Payment Channel: Choose from online, mobile app, or over-the-counter options.
3. Make Payment: Present the PRN to the cashier or enter it in the online payment portal. 

Payment Channels for 2026

• Mobile App & E-Wallets: SSS Mobile App, GCash, Maya, GrabPay, ShopeePay, PalawanPay.
• Online Banking: BPI Bizlink, Security Bank DigiBanker, UnionBank Online, BancNet eGov.
• Over-the-Counter: SSS Branch Tellering Facility, Bayad Center, Cebuana Lhuillier, Palawan Pawnshop. 

2026 Contribution Rate Note 

For 2026, the SSS contribution rate is 15% of the Monthly Salary Credit (MSC), split as 10% employer share and 5% employee share. Self-employed and voluntary members pay the full 15%. 

Payment Deadlines

• Voluntary/Self-Employed: Can pay for the current month or in advance.
• Loan Payments: Usually due on or before the last day of the month following the applicable month (e.g., July 2026 loan payment is due Aug 31, 2026). 

 

 

 

11 Easy Steps to Pay Your SSS Contributions Online (And Generate PRNs Too!)

 

The Social Security System (SSS) encourages all payors to conveniently settle their contributions and loan payments through digital payment channels offered by SSS-accredited payment partners.

By using electronic facilities such as online banking, mobile apps, and e-wallets, payors can enjoy faster posting, safer transactions, and anytime access, without the need to visit branches or payment centers.

Generate your Payment Reference Number (PRN) first

Choose your preferred SSS payment partner’s digital platform

Pay anytime, anywhere

 

 

 

 

 

 

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Notes & References:

1. https://www.taxumo.com/blog/11-easy-steps-to-pay-your-sss-contributions-online-and-generate-prns-too/

2. https://www.sss.gov.ph/

3.  https://www.sss.gov.ph/wp-content/uploads/2024/12/2025-SSS-Contribution-Table-rev.pdf

 

 

excise tax

3.16.2026 #onlinediary #PoliticsPH

 

Laging binabago ng mga hype na BIR at iba pang govt agency yung mga filing at kung ano anong compliance... para laging complicated , pra laging hirap sa compliance mga small business, pra penalTy nga naman..

 

yung rules today, iba na naman sa rules tomorrow..

 

pro now i just realized yung BIR is kumbaga minions lang, ang talagang mga buwaya is yung mga nasa congress, both house of rep & senate.. Imagine mo naman kung gaano kalaki yung excise tax sa mga gasolina.. then additional 12% VAT pa.

 

mas malaki nga naman makukuha sa tax, mas mas madaming maletang makukubra..

mga katulad ni Salceda, VATman Recto, Angara.. mga hype talaga..

 

 

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Ref:

1. As of March 2026, the excise tax on fuel in the Philippines is pegged at P10 per liter for gasoline and other liquid fuels, and P6 per liter for diesel, with a 12% Value Added Tax (VAT) applied on top of these prices. Proposals are under consideration to suspend these taxes, potentially reducing gasoline prices by P10 and diesel by P6, say Inquirer.net and ABS-CBN.

2. The excise tax on fuel in the Philippines, officially known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law (RA 10963), was principally authored by Representative Dakila Cua in the House of Representatives and sponsored in the Senate by Senator Sonny Angara. It was signed by President Rodrigo Duterte in December 2017.

Key individuals involved in the passage of the fuel tax law:

House Bill 5636 (TRAIN): Introduced by Rep. Dakila Cua.

Principal Authors: Included Representatives like Joey Salceda.

Senate Sponsor: Senator Sonny Angara.

The law introduced tiered increases in excise taxes on fuel, which took effect beginning in 2018. The law aimed to generate revenue for infrastructure projects (Build, Build, Build) while adjusting tax rates for a more progressive system

Chop House Resto Bar ( Pacita, San Pedro City, LAguna) March 2026

CHOP HOUSE ANGELS FRIDAY NIGHT
   Chop House Resto Bar

 photo taken from Chop House FB page:

 

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Selfie muna with the friendly staff & Artists (KMH) :