BIR Forms 1905 and 2305

It goes without saying that all employees and employers must pay the appropriate taxes for the continued development of the nation. To streamline this process, the Bureau of Internal Revenue (BIR) rolled out a new mandate for form 2305, or the Certificate of Update of Exemption and of Employer’s and Employee’s Information. Here are the official purposes of form 2305 and a similar form, form 1905.

 

Form 1905

Form 1905 is used to update your Revenue District Office (RDO) address in case your company transfers offices or if you become employed by a different company. This is normally part of the pre-employment requirements when you move companies, and oftentimes your new employer will facilitate the transfer.

 

If your employer asks you to process this document yourself, call the BIR to find out your current RDO to determine where your Taxpayer Identification Number (TIN) is registered, then locate your new RDO. The process typically takes three to five working days to update the RDO, but sometimes it takes longer, which is why it’s advisable to call the branch first to determine if your transfer is complete before heading there to collect your paperwork. This form is also used to update your registration information, to request a new TIN card or a new copy of the Certificate of Registration.

 

Form 2305

Form 2305 is used to update your tax status and employer information. This is used when you move companies, when you change your legal status (such as when you get married) or when you add dependents (such as when you have children). The form is also used for the addition or revocation of a “waiver to claim the additional exemption” by husbands, as the tax exemptions are given to the husband by default in the case of married couples. This is waived by the aforementioned attachment, duly signed by the husband and his company’s representatives.

 

Each dependent is equivalent to a P25,000 personal exemption and you can declare a maximum of four dependents; however, supporting documents (including the birth certificates of children and a marriage certificate) must be provided before the appropriate tax exemptions become available.

 

On October 19 of this year, the BIR released the Revenue Memorandum Circular (RMC) No. 59-2015, which stipulates that employees should not visit RDOs or Large Taxpayers Divisions (LTDs) to file their form 2305, as was previously practiced. Employers are now responsible for the electronic filing of this form.

 

In case you are unsure of any part of the process, just ask one of our government certified payroll geniuses at genius@philpay.ph

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