BIR Form No. 2316 indicates income had been taxed

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Persida Acosta

Persida Acosta

Dear PAO,
My employer for almost four years has never given us an income tax return. He only gives us a copy of Form 2316. Aren’t we all required to file our income tax returns? Is Form 2316 enough proof to prove that my taxes were paid?
CP
Dear CP,

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An income tax return is one of the reports filed by both Filipinos and foreigners who are deriving income within the Philippines. It is filed on or before the fifteenth (15th) day of April of each year covering the income for the preceding taxable year. Except in cases where the Commissioner of Internal Revenue permits, the income tax return shall be filed with an authorized agent bank, Revenue District Officer, Collection Agent or duty authorized Treasurer of the city or municipality in which such person has his legal residence or principal place of business in the Philippines, or if there be no legal residence or place of business in the Philippines, with the Office of the Commissioner.

However, there are certain individuals who are exempted from filing income tax return. These are enumerated in Section 51 (A)(2) of the National Internal Revenue Code, to wit:

“Section 51. Individual Returns.—

2. The following shall not be required to file an income tax return:

a) An individual whose gross income does not exceed his total personal and additional exemptions for dependents under Section 35: Provided, that a citizen of the Philippines and any alien individual engaged in business or practice of profession within the Philippines shall file an income tax return, regardless of the amount of gross income;

b) An individual with respect to pure compensation income, as defined in Section 32(A)(1), derived from such sources within the Philippines, the income tax on which has been correctly withheld under the provisions of Section 79 of this Code: Provided, That an individual deriving compensation concurrently from two or more employers at any time during the taxable year shall file an income tax return; (as amended by Section 5, Republic Act 9504)

c) An individual whose sole income has been subjected to final withholding tax pursuant to Section 57(A) of this Code; and

d) A minimum wage earner as defined in Section 22(HH) of this Code or an individual who is exempt from income tax pursuant to the provisions of this Code and other laws, general or special.”

On the other hand, BIR Form No. 2316 refers to the Certificate of Compensation Payment/Tax Withheld. It is a certificate to be accomplished and issued to each employee receiving salaries, wages and other forms of remuneration by each employer indicating therein the total amount paid and the taxes withheld therefrom during the calendar year (http://www.bir.gov.ph/lumangweb/form_cer.html). Hence, if you do not have any other income from other employer, you do not need to file an income tax return. The BIR Form No. 2316 which your employer is furnishing you every year is enough record that your income was already subjected to income tax.

We hope that we were able to answer your queries. Please be reminded that this advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.

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