What is BIR Form 1701-MS?

It is the annual income tax return for individuals classified by the BIR as micro or small taxpayers. The form was issued in August 2024 and its filing instructions were published with RMC No. 34-2025.

Who may use Form 1701-MS?

The form covers qualified individuals engaged in business or professional practice, including mixed-income earners, who fall within the BIR's micro or small taxpayer classifications. The form itself directs taxpayers with multiple activities or tax regimes to use Form 1701 instead.

What are the micro and small taxpayer thresholds?

For this form, micro taxpayers have annual gross sales below PHP 3 million. Small taxpayers have annual gross sales from PHP 3 million to below PHP 20 million.

When is Form 1701-MS due?

It is generally due on April 15 for income earned during the preceding calendar year, unless the BIR issues a specific extension.

Can a mixed-income earner file Form 1701-MS?

Yes, if the taxpayer otherwise qualifies. Mixed-income earners are included in the official instructions, although the tax computation for the 8% option differs from the computation for purely self-employed taxpayers.

BIR Form 1701-MS: A Practical Guide for Micro and Small Taxpayers

BIR Form 1701-MS is a shorter annual income tax return for individuals classified as micro or small taxpayers. It is useful, but the label “simplified” can be misleading. You still need complete sales records, the correct tax-rate election, and any supporting schedules that apply to you.

The safest place to start is the official 1701-MS form and the BIR filing instructions.

Who the form is for

The official instructions cover qualified individuals engaged in trade, business, or professional practice. They also include people who earn both compensation and business or professional income.

BIR classification	Annual gross sales
Micro taxpayer	Below PHP 3,000,000
Small taxpayer	PHP 3,000,000 to below PHP 20,000,000

The threshold is not the only test. Form 1701-MS states that taxpayers with two or more activities, multiple tax regimes, or multiple tax rates should use Form 1701. Estates, trusts, spouses filing together, and taxpayers with special-rate income may also need additional care.

If your registration details or tax profile do not match your actual activities, ask your Revenue District Office or tax adviser which return applies before filing.

Mixed-income earners are included

Mixed-income earners are not automatically excluded from Form 1701-MS. The official form has a mixed-income option, and the BIR instructions expressly include individuals who earn compensation income alongside business or professional income.

This does not mean the tax computation is identical for everyone. A mixed-income earner who elected the 8% income tax option does not get the PHP 250,000 reduction against business income because that amount is already reflected in the graduated rates applied to compensation income. See the BIR’s guidance on the 8% option for the distinction.

When to file

Form 1701-MS is an annual return. The standard deadline is April 15 for the preceding calendar year.

The form does not replace quarterly Form 1701Q filings. If 1701Q is registered as one of your tax types, continue filing it for the first three quarters according to the deadlines on the form and current BIR advisories.

Do not assume that a filing-season circular has moved the April 15 deadline. Check the circular itself or the BIR website for an announced extension.

How to file and pay

The BIR instructions say the return should be filed electronically through an available BIR platform. Manual filing may be allowed when the electronic platforms are unavailable.

A practical filing sequence is:

Confirm your taxpayer classification and registered tax types.
Reconcile gross sales or receipts for the full calendar year.
Confirm whether you elected graduated rates or the 8% option.
If you use graduated rates, confirm whether you chose itemized deductions or the optional standard deduction.
Account for prior quarterly payments and creditable withholding taxes.
Prepare the return using the latest BIR form or software release.
File and pay through an authorized channel, then save the confirmation and proof of payment.

Payment options depend on the filing channel and taxpayer account. The BIR instructions allow electronic payment and manual payment through authorized agent banks or Revenue Collection Officers, as applicable.

What to gather before you start

Your Certificate of Registration and registered tax types
Sales or receipts records for the year
Books of accounts and financial records
Prior 1701Q returns and payments
BIR Form 2307 certificates, if clients withheld tax from payments to you
Deduction records, if you use itemized deductions
Spouse and compensation-income information, when applicable

Common filing mistakes

Treating 1701-MS as a quarterly return

It is an annual return. Quarterly income tax is reported on Form 1701Q.

Excluding mixed-income earners automatically

The official instructions include them. Their computation may differ, particularly under the 8% option.

Choosing a form only from the sales threshold

Multiple activities, tax regimes, or tax rates can require Form 1701 even when gross sales fall below PHP 20 million.

Using an old software package

Download forms and filing software from the BIR. Do not rely on an old installer saved on another computer.

Forgetting prior payments and withholding credits

Reconcile quarterly payments and Form 2307 credits before submitting the annual return.

A short final check

Before filing, compare the return against your BIR registration, books, prior quarterly returns, and payment records. If they tell different stories, stop and resolve the difference first.

Tamoogi can keep the filing task, due date, and supporting documents together. It does not compute or file the tax return for you.

Create a Tamoogi account

This article is general information, not tax or legal advice. BIR rules and filing systems can change. Verify the current form, deadline, and filing channel with the BIR or a qualified tax professional.