BIR Form 2316 Frequently Asked Questions - FullSuite

In 2018, we have released a comprehensive FAQs about BIR Form 2316 to provide answers to the most common questions we received since releasing this article below.  You can check it out here. If you are an employer seeking an assistance on filling out Form 2316, jump over to this article discussing how to properly fill out the form.

Ever since we published the article on the BIR Form 2316, we’ve received a lot of questions about it. Below are some of the most frequently asked questions about the BIR Form 2316.

1) Can I request a 2316 from my company for visa application/travel/lost my copy/etc?

Yes, you can. But they are not obliged to give you one. If you read in our original article, the employer is only required to issue 2316 on two occasions: (1) on or before January 31 of every year, (2) on the day the last payment of compensation is paid. This is covered by BIR RR 11-2013.

2) I left my company. Can I request a 2316 from my previous employer?

Yes, you can. And as stated above, they are only obliged to give you one on the day of your last compensation (or as what we’re familiar with, back pay).

However, if they didn’t give you one, bring up the revenue regulation stated above. Then call the BIR for the next steps if they still don’t give you one.

3) My employer doesn’t want to issue a 2316, can I request this from the BIR?

Yes, you can. But you won’t be able to get any.

According to the BIR, all records, such as 2316 files of individual employees, upon receipt by the respective Regional District Offices (RDOs), go directly to their warehouse.

The BIR would, most likely, not spend time digging through their archives for a single individual’s tax return.

Your best bet is to ask from your employer.

4) I resigned from my company. Do I get a tax refund?

This depends on how your previous employer calculates their tax deductions.

On another note, tax refunds shouldn’t be your only concern. You might also get a tax deficit.

See, the concept of income tax is vague to a lot of Filipinos. Simplifying this, there is just one table to refer to. The problem is that it is on an annual basis.

Amount of Net Taxable Income Rate
Over But Not Over
10,000 5%
10,000 30,000 500 + 10% of the Excess over 10,000
30,000 70,000 2,500 + 15% of the Excess over 30,000
70,000 140,000 8,500 + 20% of the Excess over 70,000
140,000 250,000 22,500 + 25% of the Excess over 140,000
250,000 500,000 50,000 + 30% of the Excess over 250,000
500,000 125,000 + 32% of the Excess over 500,000 in 2000 and onward

What that means is that the monthly deductions your employer makes is only an approximation of the income you earned and consequently the taxes applied to it.

5) Why do I need to submit a 2316 to my new employer?

The main reason you submit a 2316 to your new employer is to accurately calculate the income you earned for the given year and the appropriate taxes for it.

Going back to the table above, if your single and your monthly net income is 20,000, in a year you earn 240,000. You should be taxed 35,000. The formula for this calculation is 22,500 + (25% x (240,000 – 50,000 – 140,000)).

Note: the 50,000 in the formula is for the personal exemption for a single. 

This is easy if you didn’t have any change in status or changed employers. But if you switched companies, your present employer doesn’t know how much you earned / taxed. The 2316 tells them all those information. That way, they correctly calculate the taxes you need to pay.

6) What happens when I do not give my new employer a 2316?

If you do not give your new employer a 2316, they will be forced to deduct taxes as if you haven’t earned any income nor paid any taxes before.

Let’s use the example above of 20,000 / month salary. You were employed by Company A from January 1 to June 30, and by Company B from July 1 to present.

During your employment with Company A, you were already deducted taxes every pay period to approximate your yearly income and income tax. That should amount to ~17,500 or half of the taxes you should pay for the year.

So if you don’t have a 2316 to present to Company B, they will only have to assume that you haven’t paid any taxes. That means Company B will have no choice but to use the only information available with them, which is you earning 20,000 from July 1 to present.

Yes, applying the calculations you will get a smaller income tax payable. However, this affects your “proof of income” in the future as well.

Remember, at the beginning of every year, your employer is required to give you a 2316. This is used by other companies and organizations as proof of your earnings. So if you’re applying for a visa or applying for a loan, your standing will greatly be affected.

7) I changed employers in a single year, do I need to file BIR Form 1700?

Normally, you don’t need to do this, but it’s best to ask your employer. There are a lot of conditions stated in RR 3-2002 that covers employees qualified for substituted filing.

Again, it pays to know that you need to do these things; rather than not knowing then get slapped with a penalty.

8) What are the best practices for handling 2316?

One of the best practices you should do when you receive a 2316 is to take a photo or scan it. Save that document so whenever you need it, you can just provide a copy. Do this every year when you receive it.

This applies to all your work files and personal data. You should have a copy of all 2316, your employment contracts, etc. That way, you don’t need to go through the hassle of going back to your HR to get these.

 

Do you have more questions? Let us know in the comments below.

33 Comments

  • Jameson says:

    I’m planning to get a housing loan. ITR is one of the required requirements they need then What if I am not employed in 1year in my current employer? Do I get the form 2316? Instead of ITR ?

    • Ariel Lim says:

      ITR means income tax return. Your ITR as an employee is the 2316 or the 1700. If you haven’t completed the year yet in your new employer, your ITR would be your 2316 from your previous employer.

  • Isa says:

    If I was working part-time and below minimum wage, do I still need to request for a 2316 from my previous employer?

    • To answer your question, Yes, basically, if you have a contract that states that you are an employee of the company then your employer will need to give you your 2316 upon the end of your contract or every January 31 but if you are not part of their employee you are not entitled to receive 2316.

      We hope we’ve answered your concerns.

  • EDRIAN says:

    IF BASIC PAY IS 8,000.00 BELOW MINIMUM , CAN I REQUEST 2316?

  • Vail says:

    My new employer ask my 2316 but i have a minimum wage salary on my last employer?can i get form 2316 from the bir?

    • Full Suite Team says:

      Hello Jamaica,

      You will receive your BIR Form 2316 if:
      1. You resigned from an employer, it should be given to you on the same day they give your last pay.
      2. On the 31st of January if you have already been employed by them for the previous year.

  • Klayre says:

    I left my company. If i am not employed. 1. Can i renew 2316? 2. Can i renew 2316 form for new company? 3. Can i use my current 2316 for new company?

    • Full Suite Team says:

      Hello Klayre,

      If you get employed in 2019, you won’t need to provide a 2316 if you are not employed by any other employer this year. Previous years’ employment are not taken into consideration for current year’s calculation of income tax so you should be good. You will be automatically eligible for substituted filing for as long as you have no other income beyond the amount you got from your current employer and your TIN is transferred to the RDO of your current employer.

  • Jeffrey says:

    In bir form 2316 no. 53 which is the overtime pay, is it included already in the basic salary in no. 42 along with holiday pay, night shift diff minus the unpaid leave?

    • FullSuite Team says:

      Hello Jeffrey,

      You may want to check out our article on filling out 2316 (For employers).
      You may reference the taxable portion here.

  • Jill says:

    Hi team, do you have any idea on how to consolidate 2316? Scenario: 2 employees in 1 year. first employer provided 2316 covering January to August. And second employer covered September-December 2018. Should i just add up everything and then submit to BIR? or should I just submit my two 2316 forms? Thanks a lot!

    • FullSuite Team says:

      Hello Jill,

      If you are not qualified for substituted filing, you are required to file your personal income tax return and attach all the 2316s you received from various employers. If you need help in preparing your personal income tax return, we can do that for a small fee.

  • Marts says:

    How to consolidate 2316? I have 3 employers for 2018. Please help. Thanks

    • FullSuite Team says:

      Hello Marts,

      If you are not qualified for substituted filing, you are required to file your personal income tax return and attach all the 2316s you received from various employers. If you need help in preparing your personal income tax return, we can do that for a small fee.

  • Princess says:

    Im planning to get a housing loan and firm 2316 is one of the requirements. Is it legal to download it and have our payroll personel to fill it up?
    Thanks..

    • FullSuite Team says:

      Hello Princess,

      How long have you been with your company?
      An employer is required to give an employee Form 2316, regardless of whether they are minimum wage earners or not, on 2 occasions only:
      1. on or before the 31st of January of the succeeding year in which payment was made
      2. on the same day when the last payment of wages was made in case of termination, or resignation

      You may check out these 2 other articles on 2316 for more information.
      BIR Form 2316: Everything you need to know
      What you need to know about BIR Form 2316

  • Chielo says:

    Hi i am employed of the Company,but i my company will not deduct my salary because of my minumum wage..But for now i need to get ITR or 2316 form for my turist visa and loan requirements…My question if i request to my Comany to have a ITR or 2316 form..The Compy release ITR to me.Thank you

    • FullSuite Team says:

      Hello Chielo,

      How long have you been with your company?
      An employer is required to give an employee Form 2316, regardless of whether they are minimum wage earners or not, on 2 occasions only:
      1. on or before the 31st of January of the succeeding year in which payment was made
      2. on the same day when the last payment of wages was made in case of termination, or resignation

      You may check out these 2 other articles on 2316 for more information.
      BIR Form 2316: Everything you need to know
      What you need to know about BIR Form 2316

  • Melvin says:

    Hello. I just want to inquire about something. I have been working for Company A since November of 2016. Right now, I will be changing companies in May of 2019 and have been required by the new company to submit a Form 2316. My question is do I submit the form 2316 of the 2018 only or will I include the past ones? Do I also have to submit the one for 2019? Thank you.

    • FullSuite Team says:

      Hello Melvin,

      Tax withholding are done on an annual basis so any tax withholding done in previous years will not affect your income in 2019.
      What you need to submit to your new employer will be your January to April 2019 2316 that should be given to you by Company A on the same day your last compensation is paid.

  • Sam says:

    I left my previous company and apply for a new one this Feb 2019. As for my new employer i need to submit a 2316 from my previous employer.
    My previous one provided me my 2316 last June 2018 but i lost it, and then i requested for a new copy from them personally and told me that it is over 6 months so they can’t print it anymore. I’ve checked this with BIR on BGC as per them they dont even have a copy of it and I really need to get back to my previous company what should I do? they are trowing me back and fort.

  • Mary Grace says:

    Hi there. I just resigned last April 15. Our electronic ITR 2316 is provided annually by the company so I have my 2316 for the year 2018. Just want to ask, Is it possible that I can get my 2316 for the month of January up to the said date of my resignation?
    Hope to hear from you soon. Thank you in advance.

    • FullSuite Team says:

      Hello Mary Grace,

      Yes. They are actually obliged to give you your 2019 2316 on the same day of your final compensation payment.
      You will be needing your 2019 2316 in order for your new employer to consolidate your 2019 taxes.

      • Erolle says:

        Good Day! Regarding above matter, what would be the computation for 2316 if I only spent 2 months in my previous company? I just thought that 2316 is filed for yearly basis. Thank in advance.

        • FullSuite Team says:

          Hello Erolle,

          You may refer to this article regarding the computation and how your 2316 is filled out. Yes, 2316 is filed on a yearly basis. The 2316 you should receive from your previous employer should still have the same computation as in the aforementioned article but the figures should only correspond to the duration of your stay with them.

          You will then need to present this 2316 to your present employer so they can consolidate your taxes for 2019, assuming you will be with them until the year ends.

  • Mary Grace says:

    Thank you 😊

  • Ryan says:

    Hi. I apply for my 1905 last April 24, 2019 but I plan to get a new job and leaving my first job by June (without noticing them), should I get a 2316 for my new employer?

    • FullSuite Team says:

      Hello Ryan,

      If you won’t be notifying your current employer of your departure from their organization, they won’t be able to issue you your form 2316.
      They are only obliged to give you a copy of your 2316 in 2 instances:
      1. On the 31st of January of the following year after payment was made
      2. On the day when your final compensation is released in case of resignation.

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