RR 19-02

REVENUE REGULATIONS NO.
19-02
SUBJECT : Amending Revenue Regulations No. 3-2002 and Further Amending Section 2.83 of Revenue Regulations No. 2-98 as
Amended, Relative to 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.
TO : All Internal Revenue Officers, Employees and Others Concerned.
SECTION 1. Scope. — Pursuant to the provisions of Section 244 in relation to Section 51(A)(2)(b) of the National Internal Revenue
Code of 1997, these Regulations are hereby promulgated to further amend pertinent provisions of Revenue Regulations No. 2-98 , as
amended by Revenue Regulations No. 3-2002.
SECTION 2. Amendment. — Section 2.83.1 of Revenue Regulations No. 2-98, as amended by Section 2 of Revenue Regulations No.
3-2002, is hereby further amended to read as follows:
"Section 2.83.1. Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316). — In general, every employer or other
person who is required to deduct and withhold the tax on compensation including fringe benefits given to rank and file employees, shall
furnish every employee from whose compensation taxes have been withheld the Certificate of Compensation Payment/Tax Withheld
(BIR Form No. 2316), on or before January 31 of the succeeding calendar year, or if the employment is terminated before the close of
such calendar year, on the day on which the last payment of compensation is made. Failure to furnish the same shall be a ground for
the mandatory audit of payor’s income tax liabilities (including withholding tax) upon verified complaint of the payee.
xxx xxx xxx
The Certificate of Compensation Payment/Tax Withheld (BIR Form No. 2316) shall contain a certification to the effect that the
employer's filing of BIR Form No. 1604-CF shall be considered as a substituted filing of the employee's income tax return to the extent
that the amount of compensation and tax withheld appearing in BIR Form No. 1604-CF as filed with BIR is consistent with the
corresponding amounts indicated in BIR Form No. 2316. It shall be signed by both the employee and employer attesting to the fact that
the information stated therein has been verified and is true and correct to the best of their knowledge. However, the withholding
agents/employers are required to retain copies of the duly signed BIR Form No. 2316 for a period of three (3) years as required under
the National Internal Revenue Code.
The employee who is qualified for substituted filing of income tax return under these regulations, shall no longer be required to file
income tax return (BIR Form No. 1700) since BIR Form No. 1604-CF shall be considered a substituted return filed by the employer. BIR
Form No. 2316, duly certified by both employee and employer, shall serve the same purpose as if a BIR Form No. 1700 had been filed,
such as proof of financial capacity for purposes of loan, credit card, or other applications, or for the purpose of availing tax credit in the
employee's home country and for other purposes with various government agencies. This may also be used for purposes of securing
travel tax exemption, when necessary.
However, information referring to the certification, appearing at the bottom of BIR Form No. 2316, shall not be signed by both the
employer and the employee if the latter is not qualified for substituted filing. In which case, BIR Form No. 2316 furnished by the
employer to the employee shall be attached to the employee’s Income Tax Return (BIR Form No. 1700) to be filed on or before April 15
of the following year.
For the implementation of these Regulations, BIR Form No. 2316 herein referred to shall be BIR Form No. 2316 version October 2002
or any later version. Thus, the old version cannot be used for this purpose although may be used for those taxpayers still required to file
BIR Form No. 1700."
SECTION 3. Repealing Clause. — The provisions of existing regulations and issuances inconsistent with the provisions of these
Regulations are hereby repealed, amended or modified accordingly.
SECTION 4. Effectivity Clause. — These Regulations shall take effect fifteen (15) days after publication in any newspaper of general
circulation in the Philippines.
(SGD.) JOSE ISIDRO N. CAMACHO

Secretary of Finance
Recommending Approval:
(SGD.) GUILLERMO L. PARAYNO, JR.
Commissioner of Internal Revenue

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REVENUE REGULATIONS NO.

(SGD.) JOSE ISIDRO N. CAMACHO

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