BIR Issues Annual Income Tax Return Filing Guidelines for Calendar Year 2025

The Bureau of Internal Revenue (BIR) issued Revenue Memorandum Circular No. 20-2026 on March 16, 2026, laying out the official guidelines for filing Annual Income Tax Returns (AITR) and settling taxes due for Calendar Year 2025.

For Philippine businesses and individual taxpayers, this circular clarifies your filing options, acceptable platforms, and what it takes to stay penalty-free this tax season. Here’s what you need to know.

Where and How to File: Your Platform Options

The BIR continues to prioritize electronic filing. Depending on your taxpayer classification, here’s what applies:

• eFPS is required for mandated taxpayers or those voluntarily enrolled in the system.
• Offline eBIRForms Package v7.9.5 covers all non-eFPS taxpayers, including those filing “No Payment” returns. The AITRs available are the following:

• Manual filing is only permitted under specific conditions: during a BIR system outage (supported by an official advisory), with the Commissioner’s authorization for valid reasons, or if the required form is not yet available electronically.

The default is always electronic. Manual filing is an exception, not an option.

Special Rules for Micro and Small Taxpayers

Under BIR classification, micro taxpayers are those with gross sales or receipts not exceeding ₱3,000,000, while small taxpayers fall within the ₱3,000,001 to ₱20,000,000 range. If your business falls within either bracket, RMC 20-2026 gives you added flexibility when it comes to AITR filing:

• You may use BIR Forms 1701-MS, 1701, or 1701A, regardless of what is indicated in your Certificate of Registration (COR).
• Form 1701-MS is currently not available electronically and must be filed manually.
• If you’ve already filed using 1701 or 1701A electronically, you are no longer required to separately file 1701-MS.

Medium and large taxpayers, on the other hand, are required to file electronically using 1701 or 1701A. No exceptions.

Submitting Your Attachments the Right Way

All required attachments must be submitted through the eAFS (Electronic Audited Financial Statements) system. Accepted proofs of filing include:

• Filing Reference Number (FRN)
• Tax Return Receipt Confirmation (TRRC)
• eAFS Transaction Reference Number (TRN)

Manual submission of attachments is only allowed if eAFS is officially unavailable, confirmed by a BIR advisory.

Penalty Relief: What You Won’t Be Fined For

RMC 20-2026 provides clear penalty relief provisions worth noting:

• There are no penalties for filing at the wrong venue.
• Micro and small taxpayers are exempt from penalties if they filed 1701 or 1701A electronically, or filed and paid manually using 1701-MS.

These provisions reduce the risk of unintentional non-compliance, but only if you’re using the correct form and process for your taxpayer type.

Stay Compliant This Tax Season with CloudCFO

RMC 20-2026 reinforces the BIR’s ongoing push for digital compliance, and with the April deadline approaching, now is the time to make sure your AITR is prepared accurately and submitted on time.

CloudCFO helps businesses navigate AITR preparation, e-filing, and attachment submission, all aligned with the latest BIR guidelines. Whether you need end-to-end tax compliance support or just a second pair of eyes on your returns, our team is ready to help.

Get in touch with CloudCFO today to simplify your 2025 tax filing and stay ahead of every regulatory update.