Your three quarterly returns are only part of the job. Each year, you also file an annual income tax return (ITR) that covers the full year from January to December.
For freelancers, that return is either Form 1701A or Form 1701. Filing the wrong one is a common mix-up, so let's sort it out.
The quick answer: which form is yours?
In short: 1701A is the simpler form for freelancers with only business income who use 8% or OSD. Form 1701 is for mixed-income earners and anyone claiming itemized deductions.
Choosing your annual ITR
| Your situation | Form to file |
|---|---|
| Purely self-employed, on the 8% option | 1701A |
| Purely self-employed, graduated rates with OSD (40%) | 1701A |
| Purely self-employed, graduated rates with itemized deductions | 1701 |
| Mixed income (salary + freelance), any tax option | 1701 |
The deadline: April 15
The annual ITR is due April 15 of the year after the tax year. Your 2026 return is due April 15, 2027, which falls on a Thursday.
If April 15 ever lands on a weekend or holiday, the deadline moves to the next working day.
There is no separate fourth-quarter 1701Q. Your October to December income is covered by the annual return.
A note for mixed-income earners
If you have a job and freelance on the side, you file Form 1701 even if your employer already withholds tax from your salary.
You can still choose 8% on your business income. But for mixed-income earners, the 8% applies to your full gross business receipts with no ₱250,000 deduction. That ₱250,000 is already built into the tax table used for your salary.
If you stay on graduated rates, your taxable salary and your taxable business income are added together and taxed using the graduated table. You also file the 3% percentage tax on your business gross if you are not VAT-registered.
Reconciling your quarterly payments
The annual return uses the same cumulative idea as 1701Q. You compute the tax on your full-year income, then subtract what you already paid in Q1 to Q3 and any tax withheld by your clients.
The difference is either a balance you still owe or an overpayment.
If you overpaid, the annual form lets you choose what to do with the excess, such as carrying it over to the next year or asking for a refund or tax credit. Read the options carefully, because some choices can't be changed later. If a large amount is involved, talk to a CPA or your RDO first.
Example: Ana files her 1701A
Ana is purely self-employed on 8%. Her gross for the year is ₱850,000. Annual tax: (₱850,000 − ₱250,000) × 8% = ₱48,000. She already paid ₱29,600 through her three 1701Q returns. Balance due with her 1701A: ₱48,000 − ₱29,600 = ₱18,400.
If your income went above ₱3,000,000
The 8% option only works if your gross receipts stay at or below ₱3,000,000. If you went over during the year, you are automatically moved to graduated rates for that year. The 8% taxes you already paid are credited against what you owe.
In that case, your annual computation changes, and the form you file may change too. Recompute carefully before filing.
What to prepare and attach
The exact attachments depend on your situation. At a high level, have these ready:
- Your total gross receipts for the year, taken from your books and invoices.
- Copies or details of the three 1701Q returns you filed, plus proof of payment.
- Certificates of tax withheld (Form 2307) from any local clients who withheld tax.
- For employees with side income: your employer's certificate of compensation and tax withheld.
- Financial statements, when required for your filing type and income level.
- For itemized deductions: your records and receipts supporting each expense.
Check how to submit attachments
The BIR has an online facility for submitting attachments to annual returns. Requirements and thresholds can change, so check bir.gov.ph or ask your RDO what you need to submit and how.
How to file and pay
Most freelancers file through eBIRForms, the same way they file 1701Q. Save the BIR's confirmation email after you submit.
If you have a balance, pay through an authorized agent bank or a BIR-listed e-payment channel. Under the EOPT Act, you can file and pay anywhere. Keep your proof of payment with your return.
Even if you owe nothing, you still need to file. A late annual return with no tax due can still draw a compromise penalty.
Common annual ITR mistakes
Most annual return problems come from small slips that are easy to avoid. Watch out for these:
- Filing 1701A when you have a salary too. Mixed-income earners file Form 1701.
- Claiming itemized deductions on 1701A. Itemized deductions go on Form 1701.
- Deducting ₱250,000 from business income as a mixed-income earner on 8%.
- Reporting only October to December income. The annual return covers the whole year.
- Forgetting to credit the tax you paid on your three 1701Q returns.
- Leaving out Form 2307 credits from local clients, so you pay more than you owe.
- Using gross receipts that don't match your books and invoices.
- Filing but not paying the balance by April 15.
Bottom line
Purely self-employed on 8% or OSD? File 1701A. Mixed income or itemized deductions? File 1701. Either way, file by April 15, compute your full-year tax, and subtract what you already paid. Our tax calculator can help you check the numbers first.