This guide teaches you how to choose which Alphanumeric Tax Code you fall under when creating/editing your company profile:
First, you determine whether you're Business Income, Income from Profession, or Mixed Income: to do so remember how you registered in the BIR.
- If you are earning compensation income (from an employer who withholds compensation taxes and gives you a Form 2316) AND earning income from either business or profession, then you fall under "Mixed Income"
- If you presented DTI documents when you registered and you registered as a sole prop in the BIR, then you fall under "Business Income"
- If you got an Occupational Tax Receipt or Professional Tax Receipt as part of registration or you did not submit any DTI documentation to the BIR when you registered, then you under "Income from Profession"
Next, you determine if you'll use the "Graduated Income Tax (IT) Rates" or "8% IT Rate." You can read about the differences in this article here: TRAIN Law Primer or So what do I file now?
As a rule of thumb, if you have missed an income tax filing, then you most likely will fall under "Graduated IT Rates." Also, note that whatever option you chose the first time you submitted your 1701Q, then you're stuck with that option for the taxable year.