RR No. 19-2002: Amends RR No. 3-2002 and further amends RR No. 2-98 relative to the substituted filing of Income Tax return of employees receiving purely compensation income from only one employer for one taxable year whose tax due is equal to tax withheld and individual-payees whose compensation income is subject to Final Withholding Tax

Summary

RR No. 19-2002 amends RR No. 3-2002 and further amends RR No. 2-98 on substituted filing of the income tax return of employees with purely compensation income from one employer.

Key points

1. No ITR required. Employees with purely compensation income from only one employer for one taxable year, whose tax due equals tax withheld, no longer file an ITR (BIR Form No. 1700). Their employer’s BIR Form No. 1604-CF serves as the substitute ITR.
2. Certification on BIR Form No. 2316. BIR Form No. 2316 (version October 2002 or any later version) carries a certification that the employer’s filing of BIR Form No. 1604-CF is a substituted filing, to the extent that the compensation and tax withheld in Form 1604-CF match the amounts in Form 2316. Both employee and employer sign, attesting that the information is verified and true and correct to the best of their knowledge.
3. Employees not qualified. The certification is not signed by the employer and employee. BIR Form No. 2316 is then attached to the employee’s ITR (BIR Form No. 1700), filed on or before April 15 of the following year.

Who is affected

• Employees with purely compensation income from only one employer for one taxable year, with tax due equal to tax withheld

Deadlines and effectivity

• ITR for employees not qualified for substituted filing: on or before April 15 of the following year

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