Here are the most common BIR Form types every compliant employer must be familiar with.
What is the BIR Form 1905?
BIR Form 1905 is a crucial document in the Philippines, primarily used for updating registration information, canceling registration, or obtaining a new certificate of registration or Tax Identification Number (TIN) card.
Moreover, this form is required under Section 236 of the National Internal Revenue Code, which mandates that registered taxpayers must keep their information up to date with the Revenue District Office (RDO) where they are registered.
Additionally, any changes in tax type or other taxpayer details should be specified during this information update process.
BIR Form 1905 Purpose
The BIR Form 1905 serves several essential purposes in the Philippines, including:
- Application for Registration Information Update
- Cancellation of Registration or TIN
- Obtaining a New Copy of TIN Card
- Obtaining a New Certificate of Registration
Application for Closure of Business or Cancellation of TIN
The process of closing a business or canceling a Tax Identification Number (TIN) in the Philippines is facilitated through the use of BIR Form 1905. This form serves several purposes:
- Closure of Business: If a business owner wishes to close their business and cancel the TIN associated with it, they must fill out BIR Form 1905. Moreover, this form should be submitted to the Revenue District Office (RDO) where the TIN was originally enrolled.
- Documentary Requirements: Along with the form, certain documentary requirements are necessary to indicate the closure of the business. These may include records showing the closure and the unused documents such as receipts and permits. These documents help substantiate the closure request.
- Cancellation of TIN for Other Reasons: It’s important to note that BIR Form 1905 can also be used to cancel a TIN for reasons other than business closure. For instance, individuals or entities may need to cancel their TIN for various administrative or legal reasons, and this form is the appropriate avenue for such cancellations.
Updating Registered Address
The BIR form 1905 can be used to update the address of a registered taxpayer for several transfers:
- Transfer of registration of individuals registering a new business who are not previously engaged in business
- Transfer of registration of local employees
- Transfer of registration of local employees to RDO of a new employer.
- Transfer of registration of local employees of transferring employers.
- Transfer of registration of local employees registering a new business in another RDO.
- Transfer of taxpayers engaged in business or practice of their profession for individuals or non-individuals
Furthermore, the Bureau of Internal Revenue Form 1905 must be accomplished by the business owner/taxpayer. The same shall be then passed to the RDO where the business is located. After receiving the application, the RDO will process the transfer to the new RDO within five (5) days.
Several documents need to be passed to the processing RDO along with the form. This includes a copy of the following documents:
- Amended Securities and Exchange Commission (SEC)/DTI Certificate
- Mayor’s Business Permit
- Board Resolution, and Contract of Lease.
Application for Replacement of Certificate of Registration
Taxpayers who have lost or want a replacement for their old Certificate of Registration may apply for a new one. To do this, they need to submit the BIR form 1905 to the RDO/ Large Taxpayers Assistance Division (LTAD) I or II/ Large Taxpayers Division Office (LTDO), where they are enrolled.
Furthermore, the old certificate of registration or Affidavit of Loss must also be with the completed form. Along with it is the proof of payment for the certification fee and documentary stamp,
Application for Replacement or Cancellation of Authority to Print Receipts and Invoices
To apply for the replacement or cancellation of the Authority to Print Receipts and Invoices, the taxpayer must submit the original copy of the authority. In addition, it should include a new application form (BIR form 1906) if necessary. Lastly, they also need the duly finished form 1905 to the RDO/LTAD I or II/LTDO where the taxpayer is registered.
Application for Replacement of Tax Clearance Certificate for Tax Liabilities
For the replacement of a Tax Clearance Certificate for Tax Liabilities, the first requirement is an Affidavit of Loss (if applicable). Additionally, this should include a proof of pay for Certification Fee and Documentary Stamp Tax. And lastly, the duly completed form must be submitted to the RDO/LTAD I or II/LTDO where the individual is enrolled.
Application for Lost or Damaged TIN Card
Taxpayers can apply for the replacement of lost or damaged TIN card at the RDO/LTAD I or II/LTDO. They must also submit the requirements with an Affidavit of Loss.
Application for Update in Registered Activities
An individual registered with the Bureau of Internal Revenue may apply for a change in registered activities with the bureau by filling in the BIR Form 1905 and passing it with the original Certificate of Registration to the RDO/LTAD I or II/LTDO they are registered with.
Application for Update in Registered Name or Trade Name
To apply for a change in registered name or trade name, the taxpayer should submit the Amended SEC Registration/DTI Certificate and the original Certificate of Registration together with the filled-in BIR form 1905 to the RDO/LTAD I or II/LTDO where they are registered.
Application for Update in Tax Type Details
In the Philippines, there are two types of taxes the national and the local. The national taxes are the mandatory taxes dictated by the law, and the local taxes are those enforced by the local government. To change the tax type details, the taxpayer must submit a completed BIR form 1905 with the necessary documents (original Certificate of Registration) to the RDO/LTAD I or II/LTDO where they are registered.
Application for Update in Accounting Period
The application for an update in the accounting period requires numerous accompanying documents.
First, a letter of request containing the current and the proposed new accounting period and the reason/s for wanting to change the accounting period addressed to the district office or Large Taxpayers (LT) Office having jurisdiction over the location of the business.
Second, a certified copy of the SEC-approved Amended By-Laws showing the change in the accounting period. Third, an appropriately filled-out form 1905.
Next, a Non-forum Shopping Certificate declaring that the request has not been filed or acted upon by the BIR National Office, signed by the taxpayer or their representative.
And lastly, a sworn commitment by a responsible officer of the company to arrange a separate final or adjustment return for the interval between the close of the original and the new accounting period. Failure to comply with this commitment may result in a criminal offense.
Application for Tax Clearance
You will also need BIR Form 1905 for Tax Clearance in the Philippines. To do this, you’ll need to initiate the process by drafting a request letter indicating the purpose of your application and attaching supporting documents such as a copy of the application for tax credit or refund received by the Department of Finance (DOF). Next, complete BIR Form 1905 accurately, ensuring all necessary fields are filled in. Once these steps are completed, submit your request letter, supporting documents, and the filled-in BIR Form 1905 to the relevant tax office or authority. It’s advisable to follow up on your application’s status to ensure a smooth process, as Tax Clearance is essential for various financial transactions and legal requirements.
What information is included in the BIR form 1905?
BIR Form 1905 is a comprehensive document used for registration information updates in the Philippines. It includes various fields and sections to capture the necessary information. Here’s an optimized answer:
BIR Form 1905 is designed to collect specific information required for registration information updates. It encompasses the following key details:
- Taxpayer Information: The form begins with fields for the Taxpayer Identification Number (TIN), the Revenue District Office (RDO) code, and the taxpayer’s name. These details are essential for accurate identification.
- Reason for Update: The second part of the form contains checkboxes where taxpayers indicate the reason for the registration information update. This section covers various scenarios that may necessitate an update.
- Details of Update: Depending on the reason for the update, the taxpayer will need to provide specific details. Moreover, these details are categorized from 4A to 4K and vary based on the nature of the update.
- Declaration of Correctness: To attest to the accuracy of the provided information, the form includes a section for the taxpayer’s name, signature, and position. Such serves as confirmation that the information is correct to the best of the taxpayer’s knowledge.
- Receiving Office: At the bottom of the page, there are spaces for the stamp of the receiving office and the reception date, ensuring proper documentation and processing.
- Attachment Notes: Depending on the reason for the update, there are notes specifying the necessary attachments or supporting documents that should accompany the form.
BIR Form 2316
BIR form 2316 is the Certificate of Compensation Payment/Tax Withheld for Compensation Payment With or Without Tax Withheld. Moreover, this is an official document that the employer accomplishes for employees who received their pay in the past year. Additionally, this certificate is part of the annualization process that any corporation must conduct at the end of each business year.
The annualization process reviews all the remunerations received and taxes withheld from each worker during the fiscal year. The review results are included in the form, which will be verified and signed by both the company and employee before submission to BIR. Form 2316 is attached to the Annual Income Tax Returns (AITR) for filing.
The form 2316 must be released to the worker on or before the 31st of January of the following year. Alternatively, it can be during the last day of remuneration in case of worker termination.
When companies do a substituted filing, they send qualified employees on their behalf to file the AITR . For employees to qualify for substituted filing, they must fall under at least one of the following conditions:
- Their current employer is the only employer they have worked under for the accounted year
- They passed their form 2316 from their previous employer to their current employer. (This is if they have different employers within the considered year.)
Suppose workers are not qualified for substituted filing. In that case, they need to attach form 2316 to their Annual Income Tax Return when going to BIR.
BIR Form 2316 Contents and Purpose
BIR Form 2316, known as the Certificate of Compensation Payment/Tax Withheld, serves a critical role for both employees and employers in the Philippines. Its contents and purpose can be summarized as follows:
- Total Compensation: This form includes the total amount of compensation paid to the employee by the employer during the business year. It provides a comprehensive breakdown of earnings, including basic salary, allowances, bonuses, and other forms of compensation.
- Total Withholding Tax: BIR Form 2316 also details the total amount of withholding tax deducted from the employee’s salary throughout the year. This information is vital for employees to assess their tax liability and potential tax refunds.
- Taxpayer and Employer Information: The form includes essential information such as the taxpayer’s (employee’s) and the employer’s names, registered addresses, and Revenue District Office (RDO) codes. Such ensures accurate identification of both parties.
- Signatures: BIR Form 2316 requires the signatures of both the employee and the current employer. Additionally, these signatures attest to the accuracy of the information provided in the form.
Once completed and signed, BIR Form 2316 is submitted to the Bureau of Internal Revenue (BIR) and is an important document for income tax compliance and reporting.
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- BIR Form 2316 for resigned employees
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