Last updated: November 11, 2026
BIR Form 2316 is the Certificate of Compensation Payment and Tax Withheld. Every Philippine employer must give one to each employee, normally on or before January 31, and for many employees it also works as the annual income tax return. This guide explains who gets it, the deadlines, substituted filing, what each part of the form shows, and includes a free calculator to check the tax on your annual compensation.
- Form 2316 is issued by the employer to every employee who earned compensation in the year, including those who left mid-year.
- Employees get their copy by January 31 of the following year, or together with the final pay if they separate earlier.
- Employees with one employer for the whole year, earning only compensation, are usually covered by substituted filing, which means the signed 2316 replaces their annual return (BIR Form 1700).
- The employer sends the BIR its copy of the 2316 and the alphalist. The date is set by BIR issuances and has been extended by memorandum in some years, so check the latest circular each January.
- 13th-month pay and other benefits are tax-exempt up to ₱90,000 in total. Only the excess is taxable.
What Is BIR Form 2316?
BIR Form 2316 is the year-end certificate that shows how much compensation an employee received from an employer, how much was exempt, and how much income tax the employer withheld. It is issued under the withholding tax rules of the National Internal Revenue Code and the implementing regulations on compensation withholding.
The form has the employee’s and the employer’s details, a summary of gross compensation, non-taxable and taxable items, the tax due for the year, the tax actually withheld, and signature blocks for both the employer’s authorized officer and the employee.
Who Gets a BIR Form 2316?
- Every employee who received compensation from the employer in the calendar year: regular, probationary, project-based, part-time and contractual employees.
- Employees who resigned or were terminated during the year. They receive the form with their last pay so they can hand it to a new employer, who needs it to compute tax correctly.
- Minimum wage earners. Their basic pay, holiday pay, overtime, night differential and hazard pay are exempt from income tax, but they still receive a 2316 showing the exempt amounts.
Independent contractors and freelancers are not employees. Their clients issue a different certificate, BIR Form 2307, for creditable withholding tax.
BIR Form 2316 Deadlines for Employers
| What | Deadline | Notes |
|---|---|---|
| Give the signed 2316 to each employee | On or before January 31 of the following year | Section 2.83 of Revenue Regulations 2-98, as amended |
| Employee who leaves during the year | With the final pay | Needed by the next employer for year-end tax computation |
| Send the BIR copy of the 2316 (substituted filers) | Set each year by BIR issuance, in the first quarter | Moved to March 31 in 2020 and 2024 by revenue memorandum circulars. Check the current circular. |
| Annual information return and alphalist (BIR Form 1604-C) | Early in the following year | Follow the current BIR schedule for the alphabetical list of employees |
Dates for the BIR copy and the alphalist change from year to year, so this page deliberately does not promise one fixed date. Look for the BIR’s revenue memorandum circular each January, and set an internal deadline earlier than the official one.
Substituted Filing: When the 2316 Replaces the Annual Return
Under substituted filing, an employee does not need to file BIR Form 1700 because the employer’s year-end withholding computation and the signed 2316 serve as the return. The employee qualifies when all of these are true:
- Their income for the year is purely compensation income from one employer.
- The employer correctly withheld and remitted the tax due for the whole year.
- They have no other income that needs an annual return, such as business or professional income.
Employees with two or more employers at the same time are generally not covered. They should file their own annual return and attach each employer’s 2316.
To use substituted filing, the employer prepares a certification of the employees who qualify (Annex F under Revenue Regulations 11-2018) and submits it with the 2316 copies. In 2024 the BIR also confirmed through RMC 29-2024 that the employee’s signature on the 2316 is required again for substituted filers, ending the temporary waiver from the pandemic period.
What Is on BIR Form 2316
- Employee and employer details: names, TINs, addresses and the period covered.
- Summary of compensation: gross compensation income, non-taxable amounts and taxable income, plus the tax due and the tax withheld for the year. The difference shows whether tax was over or under withheld.
- Non-taxable items: 13th-month pay and other benefits up to ₱90,000, de minimis benefits, and the employee’s mandatory SSS, PhilHealth and Pag-IBIG contributions.
- Taxable items: basic salary, overtime, allowances that are not de minimis, and any 13th-month pay above ₱90,000.
- Signatures: the employer’s authorized representative and the employee, confirming the figures.
BIR 2316 Tax Calculator (2023 Onward Rates)
Enter the annual figures from your payroll. The tool applies the graduated income tax table for 2023 and later and shows whether the tax withheld matches the tax due.
Worked Example
Maria earns ₱40,000 a month with one employer. Her annual taxable pay excluding 13th month is ₱480,000, her 13th-month pay is ₱40,000 (fully exempt, below ₱90,000), and her mandatory contributions for the year are ₱45,000. Taxable income is ₱480,000 minus ₱45,000, which is ₱435,000. Tax is ₱22,500 plus 20% of the amount over ₱400,000: ₱22,500 + ₱7,000 = ₱29,500. If her employer withheld ₱30,000 during the year, she is overwithheld by ₱500, which is refunded at year-end.
Employer Checklist for the 2316 Season
- Close the payroll for the year and finish the annualization, including the 13th-month pay and any bonuses.
- Collect the previous employer's 2316 for employees hired mid-year and add that income and tax to the annual computation.
- Compute the tax due for the full year and settle over or under withholding in the last payroll.
- Prepare a 2316 for every employee, including those who left during the year.
- Get the employer's authorized signature and the employee's signature (an electronic signature is accepted under BIR rules on e-signing; confirm the current circular).
- Give the employee their copy by January 31.
- Prepare the certification of employees qualified for substituted filing, the BIR copies and the alphalist, and submit them by the date set in the latest BIR issuance.
- Keep the employer's copy for the period required by the Tax Code, generally at least 10 years.
Common 2316 Mistakes
- Treating the whole 13th-month pay as exempt. Only the first ₱90,000 of 13th month and other benefits combined is exempt.
- Forgetting the previous employer's income for employees hired during the year.
- Missing signatures, which can make the BIR copy unacceptable for substituted filing.
- Wrong or missing TINs for the employee or employer.
- Not issuing the form with the final pay for resigned employees.
- Using old tax tables. Since 2023 the first ₱250,000 of taxable income is taxed at 0%, and the top rate of 35% applies only above ₱8 million.
What If the Employer Does Not Issue the 2316?
Employees should first ask HR or payroll in writing, since the form is a legal obligation of the employer. If the employer still does not issue it, the employee can report it to the Bureau of Internal Revenue through their Revenue District Office. Employers who fail to issue the form can face penalties under the Tax Code. Employees applying for loans, visas or a new job often need the form, so ask early in January.
If you employ staff in the Philippines through an Employer of Record, the EOR prepares the 2316, files the alphalist and handles year-end tax adjustments as part of its payroll service. See our Philippines payroll rules guide and total cost of an employee for what is included.
Frequently Asked Questions
It is the Certificate of Compensation Payment and Tax Withheld. The employer gives it to each employee to show the compensation paid during the year and the income tax withheld. For employees under substituted filing it also serves as the annual income tax return.
On or before January 31 of the following year. If an employee separates during the year, the form is issued with the final pay.
It means the employee does not file their own annual return (BIR Form 1700) because the employer-issued 2316 replaces it. It applies when the employee had only compensation income from one employer for the whole year and the employer withheld the correct tax.
Only the part above the ₱90,000 ceiling. The 13th-month pay and other benefits are exempt from income tax up to a combined total of ₱90,000 a year.
Yes. Their basic pay, holiday pay, overtime, night differential and hazard pay are exempt from income tax, but the employer still issues a 2316 that shows these exempt amounts.
Each employer issues a 2316 for the period you worked there. You are generally not covered by substituted filing, so you file your own annual return and attach both certificates. A new employer also needs your previous employer’s 2316 to compute your tax correctly.
The employer’s authorized representative and the employee. The BIR confirmed in RMC 29-2024 that the employee’s signature is required for employees covered by substituted filing.
Form 2316 is issued by an employer to an employee for compensation income. Form 2307 is issued by a payor to a supplier or professional for creditable withholding tax on business or professional income.
