Here are the most common BIR Form types every compliant employer must be familiar with.
BIR Form 1905
The BIR Form 1905 is used for the application for registration information update, cancellation of registration, or a new copy of the certificate of registration. Furthermore, the same form is used to get a new copy of the TIN card or for cancellation of TIN. Lastly, Section 236 of the National Internal Revenue Code requires Form 1905.
Section 236 states that any registered taxpayer should update their recorded information with the Revenue District Office (RDO) whenever necessary. Furthermore, the RDO should be where they are registered. Any change in tax type or other taxpayer details must be specified during the information update.
BIR Form 1905 Purpose
The BIR Form 1905 for the Application for Registration Information Update for Updating, Cancellation of Registration or TIN, New Copy of TIN Card, or Certificate of Registration has many uses.
Application for Closure of Business or Cancellation of TIN
One purpose of using the Registration Information Update form is the canceling of TIN or registration due to the closure of a business. However, this has several procedures. The BIR form 1905 must be filled and submitted to the district office where the business owner enrolled the TIN. This is if they wish to close the business and cancel the issued TIN for the company.
Along with the form, documentary requirements indicating the closure of the business and unused documents involved, like receipts and permits, must also be submitted. Cancellation of TIN for reasons other than business closure also uses BIR form 1905.
Updating Registered Address
The BIR form 1905 can be used to update the address of a registered taxpayer for several reasons:
Transfer of registration of individuals registering a new business who are not previously engaged in business
The accomplished BIR form 1905, along with an accomplished BIR form 1901, must be submitted to the Revenue District Office. The RDO here is the branch that has jurisdiction over the intended location of the new business. The necessary documents must also be submitted along with the BIR forms, and the taxpayer must apply for a transfer to the old RDO they were enrolled with.
Transfer of registration of local employees
Transfer of registration of local employees to RDO of a new employer.
The employer is responsible for accomplishing the necessary forms for their employees and submitting them to the new RDO having jurisdiction over the new employer. The receiving district office will start the transfer of registration or TIN records of the employees. The taxpayer should also submit the application for transfer to the old district office, which will immediately proceed with transferring records to the new district office.
Transfer of registration of local employees of transferring employers.
The employer should require all employees to complete the necessary forms and submit them to the district office, which has authority over the new employer’s address. The employer must also offer a list of all active employees, updated forms, and all other necessary documentary requirements.
Transfer of registration of local employees registering a new business in another RDO.
This update concerns an individual previously registered with an RDO as an employee and is applying for a new business registration or profession in another RDO with control over the new business location. The transfer will be initiated by the RDO receiving the application. In the meantime, the individual should also pass the request for transfer to their old RDO, which will execute the transfer of the records to the new RDO.
Transfer of taxpayers engaged in business or practice of their profession for individuals or non-individuals
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. Upon 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
The application for replacement of Certificate of Registration is conducted by taxpayers who want their lost or old certificate replaced. The duly accomplished BIR form 1905 must be passed to the RDO/ Large Taxpayers Assistance Division (LTAD) I or II/ Large Taxpayers Division Office (LTDO), where the taxpayer was 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. Along with it should be 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). Next is 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 where they are registered. An Affidavit of Loss, if the card was lost, or the old TIN card, if it was damaged, must be passed with the completed form for the processing of replacement.
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
The last purpose for the use of the BIR form 1905 is for the application for Tax Clearance. To avail of tax clearance, the taxpayer must submit a request letter indicating the purpose of the application copy of the application for tax credit or refund received by the Department of Finance (DOF), with the filled-in BIR form 1905.
What information is included in the BIR form 1905?
The BIR form 1905 has numerous fields to be filled out by taxpayers wanting to apply for registration information updates. The first part of the form requires the Taxpayer Identification Number (TIN), the RDO code, and the taxpayer’s name. The second part of the form has several checkboxes asking for the reason for the registration information update and all the details of the update in the registration information. The details of the registration information update run from 4A to 4K.
After the details of the update in registration information comes the declaration of the correctness of the information provided in the form with the confirmation in the form of the taxpayer’s name, signature, and position. There are also spaces for the stamp of the receiving office and the reception date. The bottom of the page contains the notes for the attachments depending on the reason for the update.
BIR Form 2316
BIR form 2316 is the Certificate of Compensation Payment/Tax Withheld for Compensation Payment With or Without Tax Withheld. This form is an official document accomplished by the employer for employees who received their pay in the past year. The 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.
Substituted Filing
Substituted filing is having the company file the AITR of qualified employees on their behalf. 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
The Certificate of Compensation Payment/Tax Withheld is a necessity for both the workers and the company. This form contains the total amount of compensation given to the worker for all services provided during the business year. Also included in the form is the total amount of withholding tax.
The form includes the taxpayer’s and the employer’s information like name, recorded address, and RDO code. The form also requires the signatures of the worker and the current employer before getting passed to BIR.
Related: How to Compute Your Withholding Tax
BIR Form 2316 serves several purposes. The filed form allows BIR to monitor whether companies are complying with payroll-related contributions and file them accordingly. It also allows the worker to check the correctness of their tax payments. In other words, they can check the withheld amount from their salary that is remitted to BIR.
Another purpose that form 2316 serves is to provide the necessary information regarding employee contributions. This includes the contribution records from previous employers that new employers need to process current worker contributions. Lastly, Form 2316 serves as an official document or proof for a credit card, loan, and visa application, and also to meet requirements.
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