Quarterly Income Tax Return for self-employed individuals and mixed income earners.
BIR Form 1701Q is filed three times a year — covering Q1 (January–March), Q2 (January–June), and Q3 (January–September). There is no Q4 quarterly filing; the annual balance is settled through BIR Form 1701 by April 15. Deadlines fall on May 15 (Q1), August 15 (Q2), and November 15 (Q3).
Each quarterly return is cumulative — you report total income and deductions from January through the end of the quarter, not just the quarter alone. Tax paid in prior quarters is credited, so you only pay the incremental tax for each new quarter.
In practice: Carlo Reyes, a freelance web developer in Makati, earned ₱600,000 in Q1. Under the graduated rate, his computed income tax on ₱600,000 (annualized and then prorated) results in a Q1 payment of ₱35,000. In Q2 his cumulative income is ₱1,300,000 and cumulative tax is ₱90,000 — he pays ₱55,000 additional for Q2.
Why it matters: Quarterly payments spread out your tax liability across the year instead of facing a massive April bill. Missing a quarterly deadline incurs the same surcharges as missing the annual return. Even if you are cash-short, filing on time (even without payment) reduces the penalties.
Taxpayers under the 8% flat tax option pay quarterly 1701Q returns based on cumulative gross receipts rather than net income — no deductions needed, simpler computation.