RMC No. 43-2017: Announces the availability of the new versions of Update of Exemption of Employees Data Entry Module in the filing of BIR Form No. 2305 (Certificate of Update of Exemption and of Employer’s and Employee’s Information) and 2305 Batch File Validation Module

Summary

RMC No. 43-2017 announces new versions of the Update of Exemption of Employees Data Entry Module for BIR Form No. 2305 and of the 2305 Batch File Validation Module.

Key points

1. What the update allows. The new versions allow data entry of a qualified PWD dependent as an additional exemption under Republic Act (RA) No. 10754. Employers are advised to use the new versions, available at http://www.bir.gov.ph/index.php/downloadables.html.
2. Conditions for a PWD dependent. Employers ascertain that the PWD, regardless of age, is a Filipino citizen, within the fourth (4th) civil degree of consanguinity or affinity to the taxpayer/benefactor, not gainfully employed, and chiefly dependent upon and living with the taxpayer/benefactor.
3. Limit on dependents. The total number of dependents, whether qualified dependent children or qualified PWD dependents, for which additional exemptions may be claimed cannot exceed four (4).
4. Documents to employer. Employees submit to their employers a duly accomplished BIR Form No. 2305, a photocopy of the PWD ID, a Sworn Declaration/Identification of Qualified Dependent PWD, Support and Relationship, the PWD’s Birth Certificate, a Medical Certificate, and a Barangay Certification that the PWD lives with the benefactor.

Who is affected

• Employers
• Employees claiming a PWD dependent

Deadlines and effectivity

• Documents submitted for the first year of claiming and three (3) years thereafter, or upon renewal of the PWD ID, whichever comes first

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.