QuestionsQuestions (REVENUE REGULATIONS NO. 19-2002, OCTOBER 11, 2002)
It amends Revenue Regulations No. 3-2002 and further amends Section 2.83 of Revenue Regulations No. 2-98 on the substituted filing of income tax returns of employees who receive purely compensation income from only one employer for one taxable year and whose tax due equals tax withheld, as well as certain payees subject to final withholding tax.
RR No. 19-2002 amends Revenue Regulations No. 2-98 (as amended by RR No. 3-2002), specifically through further amendment of Section 2.83.1 of RR No. 2-98.
Every employer required to deduct and withhold tax on compensation (including fringe benefits given to rank-and-file employees) must furnish the employee with BIR Form 2316 on or before January 31 of the succeeding calendar year, or if employment ends before year-end, on the day of the last payment of compensation.
Failure to furnish BIR Form 2316 is a ground for mandatory audit of the payor’s (employer’s) income tax liabilities (including withholding tax) upon verified complaint of the payee.
BIR Form 2316 includes a certification that the employer’s filing of BIR Form 1604-CF shall be considered as the substituted filing of the employee’s income tax return to the extent that the compensation and tax withheld amounts in BIR Form 1604-CF are consistent with the amounts indicated in BIR Form 2316.
It shall be signed by both the employee and employer attesting that the information stated is verified and true and correct to the best of their knowledge. However, the certification at the bottom of BIR 2316 shall not be signed by both employer and employee if the employee is not qualified for substituted filing.
No. The regulations state that a qualified employee is no longer required to file income tax return (BIR Form 1700) because BIR Form 1604-CF (as certified through BIR Form 2316) is considered a substituted return filed by the employer.
BIR Form 2316 serves the same purpose as if BIR Form 1700 had been filed, such as proof of financial capacity for loan, credit card, or other applications, and for availing tax credit in the employee’s home country and other purposes with various government agencies.
Yes. The regulations state it may be used for securing travel tax exemption, when necessary.
If the employee is not qualified and the bottom certification of BIR Form 2316 is not signed by both employer and employee, the BIR Form 2316 furnished by the employer shall be attached to the employee’s Income Tax Return (BIR Form 1700) to be filed on or before April 15 of the following year.
Withholding agents/employers must retain copies of the duly signed BIR Form 2316 for three (3) years, as required under the National Internal Revenue Code.
The repealing clause provides that provisions of existing regulations and issuances inconsistent with RR No. 19-2002 are hereby repealed, amended, or modified accordingly.
It takes effect fifteen (15) days after publication in any newspaper of general circulation in the Philippines.
For implementation, BIR Form 2316 referred to must be the version October 2002 or any later version. The old version cannot be used for this purpose although may be used for taxpayers still required to file BIR Form 1700.
It is pursuant to Section 244 in relation to Section 51(A)(2)(b) of the National Internal Revenue Code of 1997.