What is a Fiscal Year in the Philippines?
A fiscal year is a consecutive 12-month period. Businesses use it for financial reporting and tax purposes. It does not always follow the calendar year. In fact, it can start on the first day of any month.
What is the Standard Reporting Period?
The default is the calendar year. It runs from January 1 to December 31. This is the official fiscal year for the Philippine government. Consequently, most individual taxpayers and businesses use this period.
When Must Corporations File Annual Taxes?
The deadline depends entirely on your chosen fiscal year end.
- For the Calendar Year (Ending December 31): The Annual Income Tax Return is due by April 15 of the following year.
- For a Non-Calendar Fiscal Year: The deadline is the 15th day of the fourth month after your fiscal year ends. For example, a year ending on June 30 means the tax is due by October 15.
Can a Business Choose a Different Fiscal Year?
Yes, a non-calendar year is possible. However, you must first secure approval from the Bureau of Internal Revenue (BIR). Businesses often do this to align with their natural operating cycles. For example, a retailer might want their year to end in January. This lets them include the complete holiday sales season in one report.
What are the Rules for Non-Calendar Filers?
If you get BIR approval, your annual and quarterly filing dates shift.
- Quarterly Returns (BIR Form 1702Q): These are due within 60 days after each fiscal quarter ends.
- Annual Returns (BIR Form 1702RT/MX): These are due on the 15th day of the fourth month after the fiscal year ends.
Basically, you maintain the same filing structure. But the specific dates adjust to match your chosen 12-month period.