How to File BIR Form 1702-EX: Annual Income Tax Return for Tax-Exempt Corporations and Associations
BIR Form 1702-EX is the Annual Income Tax Return filed by corporations, partnerships, and associations exempt from income tax under Section 30 of the National Internal Revenue Code (NIRC) or a special law, provided they have no other taxable income for the year. It is due on or before the 15th day of the 4th month after the close of the taxable year — April 15 for calendar-year filers — and is required even when the computed tax due is zero, because the filing itself documents the exempt income for the BIR rather than functioning as an optional formality.
Track Your Nonprofit's Unrelated Income Separately FREE →This guide walks through who exactly must use BIR Form 1702-EX, why “exempt” does not mean “no filing,” the required attachments specific to exempt entities, the eBIRForms filing steps, and a worked example splitting exempt income from taxable unrelated income. For which 1702 variant applies to your entity in the first place, see BIR Form 1702-RT vs 1702-EX vs 1702-MX; for the general corporate attachment checklist this guide builds on, see BIR Form 1702 Attachments.
Who exactly must file BIR Form 1702-EX? #
BIR Form 1702-EX is filed by corporations, partnerships, and associations that qualify as exempt under NIRC Section 30, or under a separate special law, and that have no income taxable outside that exempt purpose. Section 30 lists specific categories of nonstock organizations that “shall not be taxed” on income received in pursuit of the purpose that qualifies them — it is not a blanket exemption for every nonprofit or every nonstock entity.
Section 30 categories that commonly file BIR Form 1702-EX include:
- (A) Labor, agricultural, or horticultural organizations not organized principally for profit
- (B) Mutual savings banks without capital stock, and cooperative banks organized and operated for mutual purposes without profit
- (C) Beneficiary societies, orders, or associations operating for the exclusive benefit of their members (fraternal organizations under the lodge system, mutual aid associations)
- (D) Cemetery companies owned and operated exclusively for the benefit of their members
- (E) Nonstock corporations or associations organized and operated exclusively for religious, charitable, scientific, athletic, or cultural purposes, or for the rehabilitation of veterans
- (F) Business leagues, chambers of commerce, or boards of trade not organized for profit
- (G) Civic leagues or organizations not organized for profit, operated exclusively for the promotion of social welfare
- (H) Nonstock, nonprofit educational institutions
- Additional categories cover certain government-related and mutual-purpose entities under the same section
Entities exempt under a special law rather than Section 30 — certain cooperatives under Republic Act No. 9520, for instance — also file BIR Form 1702-EX when they have no other taxable income. Whichever category applies, the organization must be able to show it is organized and operated for the exempt purpose the statute requires, not merely nonstock or nonprofit in name. RMO No. 38-2019 governs how a Certificate of Tax Exemption is issued and renewed for most of these categories.
Why “exempt from tax” doesn’t mean “exempt from filing” #
A common misunderstanding is that a Certificate of Tax Exemption removes the obligation to file anything with the BIR — it doesn’t. Section 30 exempts qualifying organizations from income tax on income received “as such,” but the filing requirement is separate: BIR Form 1702-EX is how the organization documents that exempt income annually and confirms, year over year, that it still meets the conditions for exemption. Under RMO No. 38-2019, Section 30 organizations are expected to file their annual (and, where applicable, quarterly) income tax returns to report their income even where no tax is ultimately due on it, and a Certificate of Tax Exemption must be renewed before it expires to keep that exempt status current — so filing and exemption maintenance run on parallel, not interchangeable, tracks.
The last paragraph of Section 30 is the reason this matters in practice. It reads:
“Notwithstanding the provisions in the preceding paragraphs, the income of whatever kind and character of the foregoing organizations from any of their properties, real or personal, or from any of their activities conducted for profit regardless of the disposition made of such income, shall be subject to tax imposed under this Code.”
In other words, the exemption is scoped to the activity, not the organization as a whole — a point covered in depth in Is a Tax-Exempt Nonprofit’s Unrelated Business Income Still Taxed by the BIR?. If an otherwise-exempt organization earns income from an unrelated for-profit activity, that income is taxable regardless of what the organization does with the proceeds — and once that happens, the entity no longer has “no other taxable income,” which is the condition that makes BIR Form 1702-EX the right form in the first place.
When does an exempt entity stop filing 1702-EX and move to 1702-MX? #
The moment a Section 30 organization has taxable income alongside its exempt income, it moves from BIR Form 1702-EX to BIR Form 1702-MX, which is built to report income taxed under two different treatments in the same return. This is not a penalty or a loss of exempt status — the organization’s related, purpose-driven income can remain exempt indefinitely — but the return itself has to change once there’s a taxable stream to report next to the exempt one. See BIR Form 1702-RT vs 1702-EX vs 1702-MX for how the three variants are distinguished, and the unrelated business income guide for how to identify which of an organization’s income streams count as “unrelated” in the first place.
Attachments specific to BIR Form 1702-EX #
On top of the standard corporate attachments — audited financial statements and a Statement of Management’s Responsibility — an exempt filer keeps its Certificate of Tax Exemption or BIR ruling confirming Section 30 status current and available, because that document is what justifies filing 1702-EX rather than a taxable variant. BIR Form 1702 Attachments covers the full corporate attachment checklist in detail; the items below are what an exempt entity should treat as non-negotiable:
| Attachment | Why it matters for an exempt filer |
|---|---|
| Certificate of Tax Exemption (CTE) or BIR ruling confirming Section 30 status | Substantiates the exemption itself; must be current, not expired, under RMO No. 38-2019 |
| Audited Financial Statements (AFS) with Statement of Management’s Responsibility | Standard corporate attachment under NIRC Section 232 (as amended) and Revenue Regulations No. 3-2010, filed through the BIR eAFS portal |
| Schedule/breakdown of exempt income by source | Supports the exemption claim and gives the BIR a basis to verify income falls within the exempt purpose |
| Documentation for any incidental or unrelated income, if present | If present at all, this income belongs on BIR Form 1702-MX instead — its presence is itself a signal to re-check which form applies |
Most Section 30 categories must renew their Certificate of Tax Exemption every three years under RMO No. 38-2019, though the order carves out an exception for certain categories — including nonstock, nonprofit educational institutions — that are not subject to that three-year renewal cycle. Confirm your organization’s specific category and renewal status before assuming either rule applies.
How to file BIR Form 1702-EX step by step #
Filing BIR Form 1702-EX follows the same eBIRForms or eFPS mechanics as any other 1702 variant — the difference is in what gets reported, not how the system is used.
- Confirm your Certificate of Tax Exemption or BIR ruling is current. If it has lapsed and hasn’t been renewed, resolve that before filing — an expired CTE undermines the basis for filing 1702-EX at all.
- Compile exempt income by source for the taxable year — donations, dues, tuition, grants, or other income tied directly to the exempt purpose.
- Screen for any unrelated or property income. If any exists, stop and re-route to BIR Form 1702-MX instead, per the last paragraph of Section 30.
- Download or update the Offline eBIRForms Package from the BIR website and select BIR Form 1702-EX (currently the January 2018 ENCS version).
- Fill out the form, entering exempt income by category and organization details; the return computes to zero tax due when no taxable income exists.
- Validate and submit through the Offline eBIRForms Package (or file directly through eFPS if your organization is an eFPS-enrolled or eFPS-mandated filer) and retain the system-generated confirmation.
- Submit attachments through eAFS — audited financial statements, Statement of Management’s Responsibility, and the CTE/ruling — within the BIR’s attachment submission window for the filing.
Filing channel: organizations enrolled in or mandated to use eFPS file there; all others use eBIRForms. Compare the two in eFPS vs eBIRForms.
When is BIR Form 1702-EX due? #
BIR Form 1702-EX is due on or before the 15th day of the 4th month following the close of the taxable year — April 15 for a calendar-year organization — the same statutory deadline that applies to the other 1702 variants. That said, the BIR does periodically move this date for a specific filing year. As a concrete example: RMC No. 30-2026 extended the deadline for filing 2025 Annual Income Tax Returns — and paying any tax due, and submitting required attachments — from April 15, 2026 to May 15, 2026, in response to a declared state of national energy emergency. That extension applied to that specific filing year only, not as a standing rule; always check the current year’s BIR issuances rather than assuming April 15 is fixed.
Worked example: a nonstock, nonprofit school with rental income #
A nonstock, nonprofit school organized under NIRC Section 30(H) earns ₱2,000,000 in tuition and donation income for the year — income tied directly to its educational purpose — and separately earns ₱150,000 from renting out its gymnasium to outside groups on weekends, an activity unrelated to instruction. This mirrors the related-vs-unrelated distinction covered in Are Private Schools Tax-Exempt?, which walks through the nonstock-vs-proprietary school split in more depth.
| Income source | Related to exempt purpose? | BIR tax treatment | Reported where |
|---|---|---|---|
| Tuition and donation income | Yes | Exempt under Section 30(H) | BIR Form 1702-EX, if this is the school’s only income |
| Gymnasium rental to outside groups | No | Taxable at the regular corporate rate under the last paragraph of Section 30 | Moves the filing to BIR Form 1702-MX |
Because the ₱150,000 gymnasium rental is income “from any of their properties” under the last paragraph of Section 30, it is taxable regardless of how the school spends it — even if every peso funds scholarships. The presence of that rental income means this school can no longer file BIR Form 1702-EX for the year: it now has income under two treatments (exempt tuition income and taxable rental income), which is exactly the scenario BIR Form 1702-MX is built to report. Had the school earned only the ₱2,000,000 in tuition and donations with no gymnasium rental, BIR Form 1702-EX would have been the correct and complete filing, reporting the full ₱2,000,000 as exempt with zero tax due.
Summary #
BIR Form 1702-EX is narrower than it looks: it’s reserved for Section 30 or special-law-exempt organizations with no other taxable income, it’s still mandatory even at zero tax due, and it stops being the right form the moment unrelated or property income enters the picture. Confirm your organization’s exact Section 30 category and current Certificate of Tax Exemption before filing, screen every income stream for the related-vs-unrelated test, and file through eBIRForms or eFPS by the statutory April 15 deadline — checking each year for a BIR-issued extension like RMC No. 30-2026 before assuming that date is fixed. For the full corporate attachment checklist, see BIR Form 1702 Attachments; for the variant comparison this guide builds on, see BIR Form 1702-RT vs 1702-EX vs 1702-MX.
Frequently asked questions #
Who is required to file BIR Form 1702-EX? #
BIR Form 1702-EX is filed by corporations, partnerships, and associations that are exempt from income tax under Section 30 of the National Internal Revenue Code (NIRC) or under a special law, and that have no other taxable income. Typical filers include nonstock, nonprofit educational institutions, religious and charitable organizations, civic leagues, labor and agricultural organizations, and mutual savings banks that qualify under Section 30.
Does a tax-exempt corporation still need to file BIR Form 1702-EX if it owes no tax? #
Yes. Exemption from income tax is not the same as exemption from filing. A qualified Section 30 organization still files BIR Form 1702-EX annually to report its exempt income and confirm its exempt status, even when the computed tax due is zero.
What is the deadline for filing BIR Form 1702-EX? #
BIR Form 1702-EX is due on or before the 15th day of the 4th month following the close of the taxable year — April 15 for a calendar-year filer. The BIR can issue a Revenue Memorandum Circular extending this deadline in a given year, as it did with RMC No. 30-2026, which moved the 2025 Annual Income Tax Return deadline to May 15, 2026; always confirm the current year’s deadline rather than assuming April 15 applies unchanged.
What attachments does a Section 30 organization need for BIR Form 1702-EX? #
Beyond the standard BIR Form 1702 attachments — audited financial statements and a Statement of Management’s Responsibility — an exempt filer additionally keeps a valid Certificate of Tax Exemption (or the BIR ruling confirming its Section 30 status) on file, since the exemption itself is what justifies filing 1702-EX instead of 1702-RT or 1702-MX.
If an exempt organization earns unrelated business income, does it still file BIR Form 1702-EX? #
No. Once a Section 30 organization has income taxable under the last paragraph of Section 30 — income from its properties or from an activity conducted for profit unrelated to its exempt purpose — it no longer has “no other taxable income” and moves to BIR Form 1702-MX instead, reporting the exempt income and the taxable unrelated income in the same return.