BIR Form 1701 vs 1701A: Key Differences Explained

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Filing your annual income tax return in the Philippines? If you’re a self-employed resident of the Philippines, or a self-employed non-resident earning income generated from the Philippines, you’ll usually need to report earnings to the Bureau of Internal Revenue (BIR) and pay your taxes. There are several different forms which may be required, but choosing the right option from BIR form 1701 and BIR form 1701A¹ will depend on the type of income you’ve earned during the tax year.

This guide covers an outline of both options so you can decide which is right for your needs. We'll also introduce the Wise account, a handy companion to make your money go further with low, transparent fees.

This guide is for information only. Tax can be complex and penalties may apply if you make mistakes. Get professional support and advice if you are unsure about how to file your taxes.

What is BIR Form 1701?

The full name of BIR Form 1701² is as follows:

BIR Form No. 1701 - Annual Income Tax Return For Individuals (including MIXED Income Earner), Estates and Trusts

You need to use this form to report your income to the BIR if you’re self employed, engaged in trade or a professional and earn both from employment and as a self employed person.

If BIR Form 1701 is the right one for you, you’ll need to file this document with BIR on or before April 15 annually.

What is BIR Form 1701A?

The full name of BIR Form 1701A³ is as follows:

BIR Form No. 1701A - Annual Income Tax Return for Individuals Earning Income PURELY from Business/Profession

You need to use this form to report your income to the BIR if you’re self employed, or a professional and earn income purely as a self employed person.

BIR Form 1701A should be filed on or before April 15 annually.

1701 vs 1701A: What’s the main difference?

Here’s a quick comparison of 1701 vs 1701A to illustrate where they're similar - and what the differences are:

*Details correct at time of research - 24th February 2026

Who should file BIR Form 1701?

This is the correct form to select if you’re reporting income under the following circumstances:

• You’re a resident citizen in the Philippines and earned an income from trade, business, or practice of profession within the Philippines or globally
• You’re a resident alien, non-resident citizen or non-resident alien individual and earned an income from trade, business, or practice of profession within the Philippines
• You’re acting on behalf of someone else who has earned an income in trade or business (as the guardian of a minor or executor of an estate for example)
• You’ve earned an income from trade, business, or practice of profession, and also earn a salary as an employee

For example, Mary works full-time as an employee and as a side hustle runs an online shop. She should file BIR Form 1701, as she has a mixed income.

Who should file BIR Form 1701A?

This is the correct form to select if you’re reporting income under the following circumstances:

• You’re a resident citizen in the Philippines and earned an income from trade, business, or practice of profession within the Philippines or globally
• You’re a resident alien, non-resident citizen or non-resident alien individual and earned an income from trade, business, or practice of profession within the Philippines

AND:

You used the optional standard deduction method to calculate taxable income, and your income is subject to graduated income tax rates

OR:

You’re using the 8% flat income tax rate and your sales and non-operating income does not exceed 3 million PHP

For example, Anna is a freelance graphic designer. Her only income over the tax year arises from freelance clients. She should use BIR Form 1701A as her income comes PURELY from her freelance business.

Can you switch between 1701 and 1701A?

If you earn a mixed income from both employment and self employment you can not file 1701A. If you earn only from self employment, trade or your profession, the form you use depends on factors including whether you use itemized deductions, OSD deductions, or the 8% flat income tax rate - which is chosen at the beginning of the tax year.

If you’re thinking of switching between 1701 and 1701A, get professional tax advice to ensure you’re complying with the law.

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1. BIR Forms
2. BIR Form 1701
3. BIR Form 1701A