For freelancers, timely filing of Income Tax Returns (ITR) is crucial. But sometimes, due to busy schedules or lack of awareness, ITRs get filed late. This causes stress, penalties, and possible legal issues. Understanding what to do when your ITR is late can save you money and hassle.
What Is Late Filing of ITR?
Late filing of ITR means submitting your income tax return after the deadline set by the Bureau of Internal Revenue (BIR). The deadline for freelancers is usually April 15 for the previous calendar year’s income.
Why Late Filing Matters to Freelancers
Filing late can lead to penalties, interest on unpaid taxes, and even legal consequences. It affects your financial credibility and may limit your ability to secure loans or other financial services.
How to Handle Late Filing of ITR
File Immediately: Don’t delay further. File your ITR as soon as possible, even if late.
Calculate Penalties: Expect a ₱1,000 penalty per missed return plus a 25% surcharge on the tax due and monthly interest.
Pay Penalties and Taxes: Settle your taxes and penalties to avoid further charges.
Use BIR’s eFPS or eBIRForms: These online systems make filing easier and quicker.
Seek Professional Help: If confused, consult a tax expert to avoid mistakes.
When Should You File Late ITR?
File immediately once you realize your ITR is overdue. The longer you wait, the higher the penalties and risks.
Tips to Avoid Late Filing in the Future
- Set reminders before deadlines.
- Keep income and expense records organized.
- Use digital tools for tracking tax schedules.
- Register with BIR’s online filing system for easier submissions.
Late filing of ITR can be stressful but manageable. Acting promptly and paying due penalties helps avoid bigger problems. Stay organized and informed to maintain smooth tax compliance.
Follow Us & Make Tax Filing Easy!
Follow us on our socials (TikTok, YouTube, Facebook, and Instagram) and read our blogs for more tax tips designed for freelancers!
Download our Ultimate DIY BIR Tax Compliance Guide, try our Freelancer Income Tax Calculator, and schedule your Free Tax Consultation Call to take the next step toward confident, stress-free tax filing!