The Bureau of Internal Revenue (BIR) recently released Revenue Memorandum Circular (RMC) No. 20-2026, which provides guidance related to the filing of Annual Income Tax Returns (AITR).
Many freelancers and small business owners have questions about BIR Form 1701MS and whether they need to use it instead of the usual 1701 or 1701A forms. This article breaks it down and shows how you can file your Annual ITR conveniently through Taxumo.
What is RMC 20-2026?
RMC 20-2026 announces the availability and mandatory use of revised annual income tax return forms for the taxable year 2025, due by April 15, 2026.
The circular aligns with ongoing BIR efforts to simplify compliance and emphasizes electronic filing via eBIRForms or eFPS for efficiency.
What RMC 20-2026 clarifies
According to the circular, 1701MS is intended for micro and small taxpayers, but this does not mean all taxpayers must immediately switch to it.
Taxpayers may still file the appropriate Annual ITR form based on their situation, including:
Form | Who uses it? | Manner of filing |
Form 1701MS |
Micro/small business individuals
| 1. Manual filing:
|
Form 1701 |
Mixed income earners or taxpayers using Graduated - Itemized Deduction rate | 1. Electronic filing and payment:
|
Form 1701A |
8% flat rate opt-in professionals or individuals using Graduated - OSD rate | 1. Electronic filing and payment:
|
Do I need to switch to 1701MS this year?
A common question:
“I usually file 1701A. Do I need to file 1701MS instead?”
Here’s the clarification:
You do NOT need to amend or refile to 1701MS if you have already filed 1701 or 1701A in advance.
1701MS is primarily for micro and small taxpayers and is intended for manual filing.
You can continue using 1701 or 1701A based on your taxpayer classification and deduction method (itemized deductions, OSD, or 8% flat rate).
Key takeaway: Filing your Annual ITR on time with the form you already submitted is more important than switching forms.
💡 File your Annual ITR with Taxumo!
Why Taxumo?
Taxumo is accredited by the BIR as a Tax Software Provider (TSP), which means filings submitted through the platform follow BIR requirements.
With Taxumo, you can:
Prepare, file, and pay your Annual ITR electronically
Stay aligned with the latest BIR issuances, including RMC 20-2026
Manage tax filing in a more straightforward way, especially for freelancers, small business owners, and professionals
If you have any questions, feel free to reach out at cs@taxumo.com anytime.