Question & AnswerQ&A (REVENUE REGULATIONS NO. 19-2002, OCTOBER 11, 2002)
The main purpose is to amend Revenue Regulations No. 3-2002 and further amend Section 2.83 of Revenue Regulations No. 2-98 as amended, specifically relative to the substituted filing of income tax returns of employees receiving purely compensation income from one employer for one taxable year whose tax due is equal to tax withheld and individual payees whose compensation income is subject to final withholding tax.
It refers to Section 244 in relation to Section 51(A)(2)(b) of the National Internal Revenue Code of 1997.
Every employer or person required to deduct and withhold tax on compensation including fringe benefits given to rank and file employees is required to furnish BIR Form No. 2316.
On or before January 31 of the succeeding calendar year, or if employment is terminated before the close of such calendar year, on the day the last payment of compensation is made.
Failure of the employer to furnish BIR Form No. 2316 to the employee is a ground for mandatory audit upon verified complaint of the payee.
It certifies that the employer's filing of BIR Form No. 1604-CF shall be considered as substituted filing of the employee’s income tax return to the extent that the compensation and tax withheld amounts in BIR Form No. 1604-CF are consistent with the amounts in BIR Form No. 2316.
Both the employee and the employer must sign BIR Form No. 2316 attesting to the truth and correctness of the information.
Employers must retain copies for three (3) years as required under the National Internal Revenue Code.
No. The employer’s filing of BIR Form No. 1604-CF and the duly certified BIR Form No. 2316 serve as a substituted filing, and the employee is no longer required to file BIR Form No. 1700.
Yes, it can be used as proof of financial capacity for loans, credit cards, tax credit claims, travel tax exemption, and other purposes with various government agencies.
The certification on BIR Form No. 2316 shall not be signed, and the BIR Form No. 2316 must be attached to the employee’s Income Tax Return (BIR Form No. 1700) to be filed by April 15 of the following year.
No. Only the October 2002 or any later version of BIR Form No. 2316 can be used for substituted filing purposes; the old version cannot be used for this purpose.
It took effect fifteen (15) days after its publication in any newspaper of general circulation in the Philippines.