RR 11-2013: Submission of the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) for Employees Qualifying Substituted Filing

On May 20, 2013, the Bureau of Internal Revenue issued Revenue Regulation (RR) 11-2013 entitledFiling/Submission of Hard Copy of the Certificate of Compensation Payment/Tax Withheld (BIR Form 2316) Covering Employees Who are Qualified for Substituted Filing, thereby Amending Revenue Regulations (RR) No. 2-98, as last amended by RR No. 010-08.

RR 11-2013 is issued in order to prescribe additional forms/documents to be filed by withholding agents in compliance with their duty to report income of their employees under the law.

Employer-employee relationship makes the employer a withholding agent in accordance with RR No. 2-98.  As a withholding agent, it needs to withhold certain tax on the compensation of the employees and issues a withholding tax certificate, in this case BIR Form No. 2316.  The original and duplicate copy of BIR Form No. 2316 is, as rule, given to the employee.

RR No. 11-2013 clarifies the following:

1. In cases covered by substituted filing, the employer shall furnish each employee with the original copy of BIR Form No. 2316 and file/submit to the BIR the duplicate copy not later than February 28 following the close of the calendar year.

2. Employers of Minimum Wage Earners (MWEs) are still required to issue BIR Form No. 2316 (June 2008 Encs version) to the MWEs on or before January 31 of the following year.

3. Failure (unless due to reasonable cause and not willful neglect) to submit/file BIR Form 2316 within the time required by RR 11-2013 will hold the employer/withholding agent liable of P1,000 for each failure, aggregate amount should not exceed P25,000.

4. Failure for two (2) consecutive years to submit/file BIR Form 2316 within the time required by RR 11-2013 shall be liable in addition to other penalties provided by law, upon conviction thereof, be punished by a fine of not less than P10,000.00) and suffer imprisonment of not less than one (1) year but not more than ten (10) years.

You can download a copy of the Revenue Regulations No. 11-2013 using the link below.

Revenue Regulations No. 11-2013 (5522)


Orlando Calundan is a CPA currently working at SGV & Co. (a member of EY Global) as an Audit Manager. He has exposures in audit of financial statements of entities in various industries such as real estate, food/restaurants, manufacturing, service organizations and BPOs, automotive, holding/investment companies and more. He also has exposure on internal audit engagements.

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