Law Summary
Amendment to Section 2.83.1 — Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316)
- Employers or persons required to withhold tax on compensation (including fringe benefits to rank and file employees) must furnish the Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) to their employees.
- The certificate must be given on or before January 31 of the following calendar year or on the last payment day if employment is terminated early.
- Failure to furnish the certificate is grounds for mandatory audit of the employer's income tax liabilities upon verified complaint.
Contents and Certification Requirements of BIR Form No. 2316
- BIR Form No. 2316 must include a certification that filing of BIR Form No. 1604-CF by the employer serves as substituted filing of the employee's income tax return if the compensation and tax withheld stated in both forms match.
- The certificate must be signed by both the employee and the employer, attesting to the truthfulness and accuracy of the information.
- Employers are required to retain copies of signed BIR Form No. 2316 for three years as per the National Internal Revenue Code.
Substituted Filing of Income Tax Return
- Employees qualified for substituted filing do not need to file income tax returns (BIR Form No. 1700) as the employer’s filing of BIR Form No. 1604-CF and the BIR Form No. 2316 serve as their substituted return.
- BIR Form No. 2316, duly certified, serves as proof of income and tax withheld for various purposes including loan applications, obtaining tax credits abroad, and government transactions.
- It may also be used for securing travel tax exemptions when applicable.
Non-Qualified Employees for Substituted Filing
- If an employee is not qualified for substituted filing, the certification section at the bottom of BIR Form No. 2316 shall not be signed by either party.
- In such cases, BIR Form No. 2316 must be attached to the employee's filed income tax return (BIR Form No. 1700), due on or before April 15 of the following year.
Form Version and Usage
- The BIR Form No. 2316 version used must be the October 2002 version or any later version.
- Older versions of the form cannot be used for substituted filing purposes but may be used for employees still required to file BIR Form No. 1700.
Repealing Clause
- Any existing regulations or issuances inconsistent with these amended provisions are repealed, amended, or modified accordingly.
Effectivity Clause
- The regulations take effect 15 days after publication in a newspaper of general circulation in the Philippines.