BIR Form 2316 Certificate of Compensation Payment
Updated October 16, 2026
On this page
Definition
BIR Form 2316 is the Certificate of Compensation Payment/Tax Withheld that employers issue to each employee, showing total compensation paid, non-taxable items and income tax withheld during the calendar year.
BIR Form 2316, the Certificate of Compensation Payment/Tax Withheld, is the written statement every employer that withholds tax on wages must give each employee on or before January 31 of the following year, or on the day of the last payment of wages if employment ends earlier (NIRC Sec. 83(A)). It shows gross compensation, the non-taxable and exempt portions, taxable compensation and income tax withheld. The form is signed by the employer and the employee. For employees qualified for substituted filing, the employer submits the duplicate copies to the BIR by February 28 of the following year with a certified list of qualified employees, and that submission takes the place of the employee's own return (RR 2-98 as amended by RR 11-2018). Employees who must file BIR Form 1700 attach their Form 2316 to it. Substituted filing depends on having one employer for the whole year with tax correctly withheld, not on the amount earned. Employees who change jobs receive a Form 2316 from each employer and give the previous employer's copy to the new one.
Detailed explanation
Download or check the form through the official BIR form (PDF).
What is BIR Form 2316?
BIR Form 2316, the Certificate of Compensation Payment/Tax Withheld, is the annual statement employers issue to employees in the Philippines. It shows compensation earned and income tax withheld during the calendar year (January 1 to December 31). Employers withhold tax on wages under NIRC Sec. 79 and must furnish this statement under Sec. 83(A).
Legal Basis and Requirements
Under NIRC Sec. 83(A), every employer required to withhold tax on wages must give each employee, on or before January 31 of the following year, a written statement of the wages paid and the tax withheld. Revenue Regulations No. 2-98, as amended by RR 11-2018, prescribe Form 2316 for this and require it to be signed by both employer and employee. Every employee whose wages are subject to withholding receives it, whether full-time, part-time or contractual.
Key Information Contained in Form 2316
The form includes the employee's name, address and Tax Identification Number (TIN); the employer's name, address and TIN; the period covered; gross compensation; non-taxable and exempt compensation, such as 13th month pay and other benefits up to ₱90,000, de minimis benefits and the employee's share of SSS, PhilHealth and Pag-IBIG contributions; taxable compensation; tax due; and tax withheld. It is signed by the employer or its authorized officer and by the employee.
Deadline for Issuance
Employers must issue Form 2316 to employees on or before January 31 of the following year (NIRC Sec. 83(A)). For example, Form 2316 for 2025 compensation must be issued by January 31, 2026. The duplicate copies for employees qualified for substituted filing go to the BIR by February 28 (RR 11-2018). An employer that fails to submit them on time can be penalized under NIRC Sec. 250 for each failure.
Use in Income Tax Filing
Employees qualified for substituted filing do not file a return; the Form 2316 submitted by the employer takes its place. Employees who must file attach Form 2316 to BIR Form 1700 (or Form 1701 for mixed-income earners), due April 15. If tax withheld exceeds the tax due, the excess is refunded or credited; if it falls short, the employee pays the difference.
Multiple Employers and Form 2316
Employees who worked for two or more employers during the year, at the same time or one after another, receive a Form 2316 from each. They do not qualify for substituted filing and must file BIR Form 1700, reporting the combined compensation and tax withheld. On changing jobs, the employee gives the new employer a certified copy of the previous employer's Form 2316 (RR 11-2018).
Digital and Physical Copies
Many employers now send Form 2316 as a file. Whatever the format, it should carry the required information and both signatures. Employees should keep their copy as proof of income and tax withheld.
Common Issues and Corrections
If an employee finds errors on Form 2316, such as an incorrect TIN, compensation amount or tax withheld, the employee should ask the employer to correct it before signing, since the certificate is made under penalties of perjury.
Why it matters
Employees need Form 2316 to prove the compensation they received and the tax withheld. For most employees with one employer, it replaces the annual income tax return through substituted filing; for others, it supports the BIR Form 1700 they file. Banks, embassies and new employers also ask for it as proof of income.
How it works
Employer Issues Form 2316 by January 31
After the year-end adjustment of withholding, the employer gives each employee Form 2316 on or before January 31 of the following year, or on the last payday if the employee leaves earlier in the year (NIRC Sec. 83(A)).
Employee Receives and Reviews the Form
The employee checks the compensation, non-taxable items, tax withheld and personal details. Employees qualified for substituted filing sign the certificate and return it to the employer, who signs it and gives back the original.
Employee Uses Form 2316 for ITR Filing When Required
Employees not qualified for substituted filing, for example those with two or more employers in the year, attach Form 2316 to the BIR Form 1700 they file by April 15. Mixed-income earners attach it to BIR Form 1701.
Employer Reports to the BIR
The employer files the Annual Information Return of Income Taxes Withheld on Compensation (BIR Form 1604-C) with the alphalist of employees, and submits the duplicate Forms 2316 of employees qualified for substituted filing by February 28.
Examples
Salaried Employee at ₱600,000 Annual Taxable Compensation
Juan dela Cruz has ₱600,000 of taxable compensation in 2025 from ABC Corporation. Tax due is ₱22,500 + 20% × ₱200,000 = ₱62,500, and his employer withheld exactly that. Form 2316 shows the compensation and ₱62,500 withheld. With one employer and correct withholding, he qualifies for substituted filing and files no return.
Employee with 13th Month Pay and Bonuses
Maria Santos earned ₱480,000 base pay plus ₱60,000 13th month pay and a ₱40,000 performance bonus in 2025. Of the ₱100,000 in benefits, ₱90,000 is non-taxable and ₱10,000 is taxable. After ₱35,400 of SSS, PhilHealth and Pag-IBIG contributions, her taxable compensation is ₱454,600 and tax is ₱22,500 + 20% × ₱54,600 = ₱33,420. Form 2316 shows the non-taxable and taxable amounts separately (NIRC Sec. 32(B)(7)(e) and (f)).
Employee Who Changed Jobs Mid-Year
Anna Reyes had ₱250,000 of taxable compensation from Company A (January to June 2025) and ₱280,000 from Company B (July to December 2025). Company A withheld ₱21,250 and Company B ₱27,250. Her tax on the combined ₱530,000 is ₱22,500 + 20% × ₱130,000 = ₱48,500, equal to the ₱48,500 withheld, but with two employers she must still file BIR Form 1700 and attach both Forms 2316.
Employee with Taxable Allowances and Benefits
Roberto Cruz has ₱500,000 of taxable salary plus a ₱50,000 taxable allowance in 2025, or ₱550,000 of taxable compensation, with tax of ₱22,500 + 20% × ₱150,000 = ₱52,500. His de minimis benefits within the BIR ceilings appear on Form 2316 as non-taxable compensation, not in the taxable total.
Common misconceptions
- Myth: Form 2316 is only for employees earning above ₱250,000 annually.
- Fact: Every employer required to withhold on wages gives each employee the annual statement, regardless of income level (NIRC Sec. 83(A)).
- Myth: If I don't receive Form 2316, I don't need to file an income tax return.
- Fact: Whether you file depends on your situation, not on the form. Employees with two or more employers, under- or over-withheld tax, or other non-final-taxed income must file BIR Form 1700 or 1701; ask the employer for the form or report the failure to the BIR.
- Myth: The amount shown on Form 2316 is my final tax liability.
- Fact: Form 2316 shows the tax withheld by that employer. For employees who must file, the tax due is computed on the return and any difference is paid or refunded.
- Myth: I can file my ITR without Form 2316 if I have payslips.
Questions people ask
Is BIR Form 2316 an ITR?
Form 2316 is a certificate of compensation and tax withheld, not the annual return form itself. It serves the same purpose as Form 1700 when you qualify for substituted filing: you earned only compensation from one Philippine employer during the year, the correct tax was withheld, and the employer completes the required filing. If you do not qualify, check whether you need Form 1700 or, for mixed income, Form 1701.
What is the deadline for employers to issue Form 2316?
Employers must give Form 2316 to employees on or before January 31 of the following year, or on the day of the last wage payment if employment ends during the year (NIRC Sec. 83(A)). For 2025 compensation, the deadline is January 31, 2026. Failure to furnish it can be a ground for an audit of the employer upon a verified complaint (RR 11-2018).
Can I file my income tax return without Form 2316?
Employees who must file BIR Form 1700 attach Form 2316 as proof of compensation received and tax withheld, so ask your employer for it before filing. RR 11-2018 makes the employer's failure to furnish it a ground for an audit upon a verified complaint.
What should I do if my Form 2316 contains errors?
Ask your employer to correct it before you sign. The certificate is signed by both employer and employee under penalties of perjury, so the figures should match your payslips and the employer's records before you rely on it.
Do I need Form 2316 if my taxable compensation was ₱250,000 or less?
Yes. Every employer that withholds tax on wages gives each employee the statement, whatever the amount. An individual whose taxable income does not exceed ₱250,000 is not required to file an income tax return, unless engaged in business or the practice of a profession (NIRC Sec. 51(A)(2)(a), as amended by RA 10963).
What if I worked for multiple employers in 2025?
You receive a Form 2316 from each employer. You do not qualify for substituted filing, so file BIR Form 1700 adding up the compensation and tax withheld from all employers, and attach every Form 2316. Give your new employer a certified copy of the previous employer's Form 2316 so it can withhold correctly.
Is Form 2316 required for contractual or part-time employees?
Yes, if they are employees whose wages are subject to withholding. NIRC Sec. 83(A) requires the statement for each employee. Independent contractors paid professional fees receive BIR Form 2307 instead.
Can employers issue Form 2316 electronically?
Many employers send Form 2316 as a file. What matters is that it carries the required information and the signatures of both employer and employee; keep a copy for your records.
In practice
- Employers submit the duplicate Forms 2316 of employees qualified for substituted filing to the BIR by February 28 each year, with a certified list of those employees (RR 11-2018).
- Independent contractors and professionals paid fees do not receive Form 2316; they receive BIR Form 2307 for creditable tax withheld and file their own returns.
- Employees who change jobs give their new employer a certified copy of the previous employer's Form 2316 so year-end withholding covers the full year's pay.
- An employer that fails to submit Forms 2316 on time can be penalized under NIRC Sec. 250 for each failure, and repeated failure for two consecutive years can be dealt with under Sec. 255 (RR 11-2018).
- Banks, embassies and new employers often ask for the latest signed Form 2316 as proof of income.
Next steps
Learn more
Income Tax Calculator
Calculate your annual income tax using Form 2316 data
BIR Form 1701 Guide
Step-by-step ITR filing using Form 2316 information
Withholding Tax Calculator
Verify if your employer withheld correct tax amounts
Substituted Filing Guide
Determine if you qualify for substituted filing based on Form 2316
BIR Forms Download
Download Form 2316 template and related tax forms
Related content
Calculators
Tax types
BIR forms
Guides
Glossary
Sources & References (1)
Primary sources and the laws, regulations, and official issuances this page relies on. Links open the recorded source documents or references.
- Bureau of Internal Revenue. “BIR Form 2316 (Certificate of Compensation Payment / Tax Withheld).” bir.gov.ph. Bureau of Internal Revenue, BIR Form 2316. Source checked .