What You Need to Know about BIR FORM 2316 - FullSuite

Three years ago, we discussed the basic information about BIR Form 2316 and what it means if you are issued this form. We also put up an FAQ for you last year. This year, we are putting this updated guide for employees based on the most common inquiries we have received.

If you are an employer seeking assistance on how to fill out Form 2316, jump over to this article. Otherwise, if you are an employee with questions about 2316, check the FAQs below.

What is BIR Form 2316 and why is this important?

This form contains your income and the corresponding taxes that your employer withheld from you during the year. The form serves as a proof that (1) you have earned an income; (2) taxes are withheld from the said income during the year.

In the absence of other documents showing your financial capacity, this certificate can be used as a financial document you can give to third parties to establish your financial credibility.

How often should I receive this form?

You will receive one 2316 per employer. If you switched jobs during the year, you will have a 2316 from each employer. It is important that you always secure the 2316 from your previous employer(s) as your current employer will require this document to be able to file your income tax return on your behalf.

What is substituted filing and when am I qualified for it?

A substituted filing is an arrangement where your current employer will file your tax return on your behalf.  If you are qualified for this, you do not need to do anything with your 2018 taxes as your employer will sort it out for you.  You are qualified for substituted filing if you are under either of the following circumstances:

    1. If your current employer is your only employer during the year;
  1. If you have provided your current employer with the 2316 from your previous employers in 2018.

What will happen if I did not or cannot submit (for whatever reason) Form 2316 from my previous employer in 2018?

Every employer treats this situation differently.  The most common route a current employer would take is to calculate your taxes as if it is your only employer on record. As a consequence, you will not be qualified under substituted filing and will have to file your own income tax return on or before April 15, 2019.  

I do not qualify for substituted filing. What will happen if I decided not to file my income tax return since my employer(s) already withheld taxes from my income anyway?

Withholding of taxes is not equivalent to tax filing. The law requires all registered taxpayers (that includes you as an employee) to file their taxes on or before April 15th of the year following the close of the previous calendar year. You may run into problems later on if you fail to file your own taxes. The risk of this happening though is small but the risk exists regardless.

I am a minimum wage earner and my income is not subject to income taxes. Do I still get BIR Form 2316?

Yes, you will still get the certificate as it is a document that shows your compensation regardless of whether or not it is subject to income taxes as required by law.

Why do I get a tax refund if I resign from my job during the year?

While you are employed, your withholding tax is based on the assumption that you are going to be earning the same amount of money for the whole year.  But when you resign before the end of the year, your previous employer will compute your last pay as if that is your only income for the entire year. This often results in a tax liability that is lower than the total amount of taxes already withheld from you and will result in a tax refund added to your last pay.

Why is it that I get a tax refund from my previous employer only to be informed by my current employer I have a tax payable?

The tax payable arises from two facts: (1) that the income tax is based on a graduated rate and (2) the fact that your previous employer gave you a tax refund under an assumption that you will not be earning any other income for the remainder of the year.

Graduated rate means that as your income goes up, your tax rate increases (see table below).

And because your previous employer cannot see the future, it will always calculate your tax due as if you will not receive any additional income during the year (yes, even if you resigned in February).

So when the opposite happens, your new employer will take into consideration your income from previous employment and your tax liability will be based on your total income for the year.

TRAIN TAX TABLE
There you go. These are the answers to your most common questions. If you have other concerns not discussed here, send us a note and we will have one of our tax accountants take care of you.

20 Comments

  • Lindsey says:

    hello po,may i seek help regarding accomplishing bir 2316. I just replaced our payroll employee and i’m not familiar on this. badly need your help please. thank you.

  • Anthony King says:

    Hello,

    What if my prev. employer don’t want to issue a 2316.. do i need to complain to BIR for this one? this making me hassle because my present employer give all my tax and i’m the one to submit a 1700 to BIR since i don’t have copy to prev company what are the step for this case?

    • Full Suite Team says:

      Hello Anthony,

      Your previous employer is under obligation to issue you a 2316 for that year as they are required by law to do so and it is within your right to have a document that they filed and remitted the taxes they withheld from you on your behalf. However, if they didn’t give you one, bring up BIR Revenue Regulation 11-2013. Then call the BIR for the next steps if they still don’t give you one.

  • lalie isla says:

    hi i have 2 BIR 2316 forms from 2 different employers. left the job last Jan.2018 and got the new job on the same month and year. how do i file this? i am filing my annual income tax (mixed income) since i have a business as well. i didn’t have any problem before since i just need to input my 2316 details for annual itr filing. but i’m a bit confused now since i have 2 BIR 2316 forms. what should i do? pls help. TIA

    • FullSuite Team says:

      Hello Lalie,

      BIR Form 2316s are not filed on their own at BIR. They are supporting documents for the Income Tax Return. It is Form 1700 if you are earning purely compensation income and Form 1701 if you have mixed-income sources.

  • Rica avila says:

    Hello, I lost my 2316 can I get a copy of it through online or at any BIR Branch aside from going back to my prev. employer?

  • HI GOOD DAY please help me fill-out this form i dint know it badly..

  • Cynthia says:

    Hi, I have both 2316 from.my two employers. What forms do I need to fill out for:
    A) self-filing
    B) change of RDO

    Thanks

    • FullSuite Team says:

      Hello Cynthia,

      It is 1700 if you are earning purely compensation income and 1701 if you have mixed-income sources.
      For your change of RDO, it is 1905.

  • Zee says:

    Hello. I have resigned on my previous job in May 2018 and I did not work for the rest of the year. I filled out and submitted BIR Forms 1905 and 1901 before I started on my new free-lance job this January 2019.

    I would like to know if BIR Form 2316 would suffice? Or do I need to file BIR Form 1701 myself?

    • FullSuite Team says:

      Hello Zee,

      BIR Form 2316s are not filed on their own at BIR. They are supporting documents for the Income Tax Return. It is Form 1700 if you are earning purely compensation income and Form 1701 if you have mixed-income sources.

  • John Reyes Marco says:

    Hello,

    I would like to ask if I could request for a copy of my 2316 from my current employer even though I started with them just this March 2019 for travel purposes?

    Thank you!

    • FullSuite Team says:

      Hello John,

      Yes, you may request it from your current employer, however, it is under their discretion if they will oblige.
      They are only required to give you your 2316 every 31st of January and on the day your last pay is released in case of resignation.

  • Jose M. Soriano says:

    Hi,
    I am not in good relation with my previous employer but my current employer is asking me for my 2316.
    Is there a way where I can get a copy of my 2316 in BIR directly?
    Thank you.

    • FullSuite Team says:

      Hello Jose,

      Did you lose your copy?
      They are supposed to give you a copy on the day your final compensation from your previous employer was given.
      Unfortunately, according to BIR, all records, such as 2316 files of individual employees, upon receipt by the respective Regional District Offices (RDOs), go directly to their warehouse.
      Your best bet will be to ask from your previous employer.

      • Jose M. Soriano says:

        What if I do not submit my 2316 to my current employer? I was hired this May 2019.

        • FullSuite Team says:

          Hello Jose,

          Every employer treats this situation differently. The most common route a current employer would take is to calculate your taxes as if it is your only employer on record. As a consequence, you will not be qualified under substituted filing.

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