Tax season in the Philippines can be confusing—especially for freelancers and self-employed professionals. Many ask, “Which form should I file—1700 or 1701?”
Getting this wrong could mean penalties, audits, or missed refunds.
This guide breaks down the BIR 1700 and 1701 difference so you can file confidently and stay 100% compliant.
The Clear Difference Between BIR Form 1700 and 1701
Let’s simplify it:
- BIR Form 1700 is for purely compensation income earners (i.e., employees).
- BIR Form 1701 is for self-employed individuals, freelancers, and those with mixed income (employee + side hustle).
| Form | Who Should File | Income Source | Filing Type |
| 1700 | Employees only | Salary from employer(s) | Manual or eBIR |
| 1701 | Freelancers, professionals, mixed earners | Self-employment, freelance work | Manual, eBIR, or eFPS |
Why Freelancers Must Understand This Difference
Many VAs and online freelancers file the wrong form unknowingly. Doing so may lead to:
- Wrong tax computation
- Disqualified deductions
- Non-compliance penalties
Knowing the correct form helps maximize deductions, minimize taxes, and prove your professionalism to clients and government agencies.
How to Choose Between BIR 1700 and 1701
✅ File BIR Form 1700 If:
- You are employed only.
- You earn solely from your company/employer.
- Your tax is withheld monthly and you don’t earn on the side.
✅ File BIR Form 1701 If:
- You are a freelancer, virtual assistant, or online seller.
- You run a business or offer services independently.
- You earn from both a job and a freelance side gig.
Tip: If you are a VA with no employer and earn directly from clients, you are self-employed. File Form 1701 or 1701A, not 1700.
When and Who Should File Each Form
Form 1700:
- Deadline: April 15 of the following year
- Who: Pure compensation earners
Form 1701/1701A:
- Deadline: April 15
- Who:
- Freelancers
- Sole proprietors
- Mixed income earners
- Professionals (e.g., designers, consultants, writers)
Tips to Avoid Mistakes When Filing
💡 Use the BIR Tax Calculator – Know which form to file based on your source of income.
💡 Double-check your COR (Certificate of Registration) – It shows if you’re registered as self-employed.
💡 Use eBIRForms or certified tax platforms – These tools guide you to the correct form automatically.
💡 Hire a tax pro if unsure – One consultation can save you from big mistakes.
💡 Don’t wait for the deadline – File early to avoid server issues and penalties.
Filing the Right Form Gives You Confidence and Peace of Mind
The BIR 1700 and 1701 difference is simple once you understand your income type. If you’re a freelancer or side hustler, Form 1701 is your best friend. Don’t let confusion lead to costly mistakes.
Now that you know the difference, you can file smarter—and stress less.
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