Corporations: the 1702Q

Meet the 1702Q

The 1702Q is the quarterly income tax return for corporations, and a One Person Corporation (OPC) is a corporation for tax. It's filed three times a year, each one due 60 days after the quarter ends: 30 May, 29 August and 29 November.

There's no fourth-quarter 1702Q: October to December is settled on the annual return (Lesson 7.5).

The short answer first

Lesson 7.1 got Kuting Kitchen's third quarter down to ₱162,000 of taxable income. Its corporate rate is 20%, because its net taxable income is under ₱5 million and its assets under ₱100 million (otherwise 25%).

₱162,000 × 20% = ₱32,400. Less the ₱6,000 the marketplaces withheld, backed by their BIR Form 2307 certificates: ₱26,400 to pay. Now let's see how the real form gets there.

Items 1 to 13: who and when

Page 1 starts with the return's details. Copy the taxpayer identification number (TIN), Revenue District Office (RDO) code and registered name from the 2303, the certificate of registration.

Kuting Kitchen itemizes. Item 13 asks about tax relief under a special law or a tax treaty; it has none, so "No".

Schedule 2: this quarter

On page 2, items 1 to 7 repeat Lesson 7.1: sales ₱1,200,000, less cost of sales ₱600,000, gross income ₱600,000, less deductions ₱438,000. Item 7, taxable income this quarter: ₱162,000.

Schedule 1 above it is for exempt or special-rate income. Kuting Kitchen has none, so it stays blank.

Items 8 and 9: counting from January

The 1702Q is cumulative: each return covers the year so far. Item 8 adds the taxable income of earlier quarters. To keep this simple, say Q1 and Q2 were like Q3: ₱324,000 together.

Item 9, taxable income to date, January to September: ₱486,000.

Items 10 to 13: the rate, and the 2% check

₱486,000 × 20% = ₱97,200. The printed form's rate table still shows 30%, from before the law changed; use 20% or 25%.

Item 12 is the minimum corporate income tax (MCIT): 2% of gross income, which applies from a company's fourth taxable year if it's higher than the normal tax. Kuting Kitchen started in 2025, so not yet: item 12 stays blank.

Schedule 4: what's already paid

Item 2: the tax paid on the Q1 and Q2 returns, ₱52,800. Item 4: 2307 credits from earlier quarters, ₱12,000. Item 5: this quarter's 2307s, ₱6,000. Item 7, the total: ₱70,800.

Collect every marketplace 2307 before you file, and list them in the Summary Alphalist of Withholding Taxes (SAWT), filed with the return.

Part II: what to pay

Back on page 1: income tax due ₱97,200, less credits and payments ₱70,800. Item 20, net tax payable: ₱26,400.

The same ₱26,400 as the short answer. Because the form counts from January, a slow quarter after a busy one evens out: the tax follows the year so far.

File, sign, pay

With no penalties, item 25 is ₱26,400. In 2026 the Q3 return is due 1 December: 29 November is a Sunday, and the next day is a holiday. The form has signature lines for the president and the treasurer.

Late means a surcharge and interest, items 21 to 23: a 10% surcharge and 6% interest a year for micro and small taxpayers like Kuting Kitchen. Lesson 6 covers filing and paying online.

Pop Quiz: Elle Home's Q2

Elle Home OPC's taxable income was ₱90,000 in Q1 and ₱120,000 in Q2. Its Q1 return paid ₱15,000 (₱18,000 tax less ₱3,000 of 2307s). Its Q2 2307s total ₱3,000.