23162Philippines – The Bureau of Internal Revenue has mandated all employers to submit duplicate copies of its “employee certificate of withholding taxes/payments (BIR Forms 2316)” through the issuance of BIR Revenue Regulations (RR) 11-2013. The ruling only specified employees who are subject to substituted filing as prescribed by RMC 1-2003.

Who are qualified under substituted filing?

Substituted filing applies only to individuals who meet all the following conditions:

a. The employee receives purely compensation income (regardless of amount) during the taxable year
b. The employee receives the income only from one employer in the Philippines during the taxable year
c. The amount of tax due from the employee at the end of the year equals the amount of tax withheld by the employer
d. The employee’s spouse also complies with all three (3) conditions stated above.
e. The employer files the annual information return (BIR Form No. 1604- CF)
f. The employer issues BIR Form 2316 to each employee

Penalty Clause

The issuance of the BIR Revenue Regulations (RR) 11-2013 prescribes the mandatory submission of employers where a lot of businesses were penalized for failing to comply in furnishing the duplicate copy of the BIR Form 2316 to the BIR not later than February 28 following the calendar year. Failing to submit/file BIR Form 2316 on or before February 28 following the close of the calendar year will merit a maximum penalty of 25,000 for first offence and of P1,000 for each BIR Form No. 2316 not filed WITHOUT any maximum threshold for the second offence.

Moreover, two consecutive NONCOMPLIANCE of the submission including the failure to provide accurate information, failure to deduct, withhold, and remit withholding taxes shall be punished by a fine of not less than Ten Thousand Pesos (P10,000.00) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.

Also, failure to furnish BIR Form 2316 shall be grounds for the mandatory audit of payor’s income tax liabilities (including withholding tax) upon verified complaint of the payee. Section 2.83 of Revenue Regulations No. (RR) 2-98, as amended, every employer is required to furnish its employees (including minimum wage earners) BIR Form 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 on which last payment of compensation is made.

Relevant Downloads:

Transmittal Form Sample

BIR Form 2316 July 2008 ENCS



  • Greg Aquino

    Greg V. Aquino is a Certified Public Accountant engaged in Public Practice since the year 2010. He is the managing partner of Clemente Aquino & Co., CPAs since the year 2013. Sector experience includes food & franchise company; real estate; distributorship; gasoline dealership; PEZA companies; BPOs; and non-profit organizations. He can handle individual tax planning; corporate tax planning; estate planning; transfers of real and personal properties; setup of a corporation, partnership, one-person corporation, and sole proprietorships; local government taxation; corporate housekeeping; resident agent services; corporate secretariat; fs preparation or compilation; fs reconstruction; fs audit; internal audit; and others.

%d bloggers like this: