Once you're registered as a freelancer, the BIR expects an income tax return from you every quarter. That return is Form 1701Q.
It looks intimidating at first. But the idea is simple: you report what you earned so far this year, compute the tax on it, and pay only what you haven't paid yet.
Who files Form 1701Q?
You file 1701Q if you are a resident individual earning from self-employment or the practice of a profession. That covers most freelancers: writers, designers, developers, virtual assistants, and consultants.
Mixed-income earners (people with a salary and freelance income) also file 1701Q for their business income. Their salary is handled through their employer's withholding.
Deadlines and the weekend rule
There are only three quarterly returns. The fourth quarter is covered by your annual return, due April 15 of the next year.
If a deadline falls on a weekend or holiday, it moves to the next working day.
Form 1701Q deadlines
| Quarter | Covers | Regular deadline | 2026 actual deadline |
|---|---|---|---|
| Q1 | January – March | May 15 | May 15 (Friday) |
| Q2 | April – June | August 15 | August 17 (Aug 15 is a Saturday) |
| Q3 | July – September | November 15 | November 16 (Nov 15 is a Sunday) |
| Q4 | October – December | No 1701Q | Annual return due April 15, 2027 |
How the cumulative method works
Form 1701Q is cumulative. Each quarter, you add up all your income from January 1 to the end of that quarter. You compute the tax on that total, then subtract what you already paid in earlier quarters.
This keeps your payments in line with your real yearly income, even when some months are busier than others.
Computing tax under the 8% option
If you chose 8%, the formula for a purely self-employed freelancer is: 8% × (cumulative gross receipts − ₱250,000). If the result is negative, your tax is zero.
Remember: your choice of 8% is made on your first-quarter 1701Q (or at registration, or on your first quarterly return if you started mid-year). If you skip it, you're on graduated rates for the year.
Example: Ana, a freelance designer on 8%
Q1 gross: ₱180,000. Cumulative ₱180,000 is below ₱250,000, so tax due is ₱0. Q2 gross: ₱220,000. Cumulative ₱400,000 → (₱400,000 − ₱250,000) × 8% = ₱12,000. Less ₱0 paid → pay ₱12,000. Q3 gross: ₱220,000. Cumulative ₱620,000 → (₱620,000 − ₱250,000) × 8% = ₱29,600. Less ₱12,000 paid → pay ₱17,600.
Computing tax under graduated rates
On graduated rates, you first subtract deductions from your cumulative gross. Most freelancers use the Optional Standard Deduction (OSD), which is 40% of gross receipts. You then apply the graduated tax table to what remains and subtract prior payments.
Graduated filers who are not VAT-registered also file a separate percentage tax return (Form 2551Q) each quarter. It is 3% of gross, due on the 25th day after the quarter ends.
Same income as Ana, but on graduated rates with OSD
| Quarter | Cumulative gross | Taxable (60%) | Cumulative income tax | 3% percentage tax (2551Q) |
|---|---|---|---|---|
| Q1 | ₱180,000 | ₱108,000 | ₱0 | ₱5,400 |
| Q2 | ₱400,000 | ₱240,000 | ₱0 | ₱6,600 |
| Q3 | ₱620,000 | ₱372,000 | (₱372,000 − ₱250,000) × 15% = ₱18,300 | ₱6,600 |
How to file: eBIRForms or eFPS
Most freelancers file 1701Q through eBIRForms. You download the offline package from the BIR website, fill out the form on your computer, validate it, and submit it online. You should receive an email confirming the BIR received your return. Save that email.
Some taxpayers are required or enrolled to use eFPS (the Electronic Filing and Payment System) instead. If that applies to you, your RDO will have told you.
Filing and paying are separate steps. After you file, pay any tax due through an authorized agent bank or a BIR-listed e-payment channel. Under the EOPT Act, you can file and pay anywhere. Check bir.gov.ph for the current list of channels.
- Have your TIN, RDO code, and COR details ready.
- Add up your gross receipts from January 1 to the end of the quarter.
- Check which tax option you chose (8% or graduated).
- Enter any tax paid in earlier quarters and any tax withheld by local clients.
- Validate, submit, and save the confirmation email.
- Pay any balance and keep your proof of payment.
Zero-income quarters still need a return
Earned nothing this quarter? Or your cumulative income is still under ₱250,000? You still need to file 1701Q. A return with no tax due is still a return.
Skipping it can lead to a penalty even though you owe no tax. RDOs typically impose a ₱1,000 compromise penalty for a late return with no tax due. For micro taxpayers, which includes nearly all freelancers, that is typically reduced to ₱500. Filing on time costs nothing.
Don't let a no-tax quarter slip
Late returns with tax due also get a surcharge and interest. For micro taxpayers the surcharge is 10% and interest is 6% a year. Set reminders for May 15, August 15 and November 15, and check if the date falls on a weekend.
Common 1701Q mistakes
If you spot a mistake after filing, you can usually file an amended return. For micro taxpayers, there is no penalty on an amended return if the original was filed and paid on time.
- Entering only this quarter's income instead of the year-to-date total.
- Forgetting to subtract tax paid in earlier quarters, and paying twice.
- Deducting ₱250,000 again each quarter. On the 8% option, it comes off the cumulative total only once.
- Missing the 8% election on the first-quarter return, then being stuck on graduated rates for the year.
- On graduated rates, forgetting the separate 2551Q percentage tax return.
- Converting dollar income with a random rate. Use the peso amount you actually received or recorded, and be consistent.
- Filing the return but never paying the balance.
Bottom line
File 1701Q three times a year, even with zero income. Compute your tax on your year-to-date income, subtract what you already paid, and pay the rest. Use our tax calculator to check your numbers before you file.