Update of exemption status is a common scenario in a regular workplace especially for those that employ numerous employees. This happens due to some major decisions employees are making in their lives like getting married, having a child or the like. Of course, they have to update their exemption status to avail of the additional tax exemption. In most cases, employees are the ones processing the update of their exemption status.
With the issuance of Revenue Memorandum Circular (RMC) No. 59-2015, filing of Bureau of Internal Revenue (BIR) Form No. 2305 (Certificate of Update of Exemption and of Employers and Employees Information) is now a responsibility of the employer.
RMC No. 59-2015 was issued to circularize the availability of:
- Update of Exemption of Employees (UEE) (BIR Form No. 2305) Data Entry Module
- 2305 Batch File Validation Module
The above modules shall be used for the following:
- Updating of employee’s additional exemption for dependents
- Change of status
- Execution of the “Waiver to Claim the Additional Exemption” by the husband or revocation of one previously issued
What are UEE Data Entry Module and 2305 Batch File Validation Module?
UEE Data Entry Module is a data entry module where the employer inputs all the registration updates of exemption of its employees one by one with validation before sending electronically to the BIR.
2305 Batch File Validation Module is a validation module of BIR Form 2305 for the CSV file generated by the employer using own extract program.
Simply put, data will be encoded using the UEE Data Entry Module and will be validated using the 2305 Batch File Validation Module.
Filing of 2305 and Submission of Report and Supporting Documents
BIR Form No. 2305
- BIR Form No. 2305 shall be filed electronically by the employer using any of the following format:
- Option 1 – Microsoft Excel CSV format;
- Option 2- Taxpayer’s own extract program; or
- Option 3 – BIR’s UEE Data Entry Module
- Use of Option 1 and 2 requires validation using the 2305 Batch File Validation Module
- Employees can no longer visit and submit BIR Form No. 2305 to RDOs and LTDs
- Download the modules at http://www.bir.gov.ph/index.php/downloadables.html
Submission of Reports
- Generate the CSV file using any options available above and transmit via e-mail to BIRFORM_2305@bir.gov.ph
- Reports with error or invalid file are considered as non-filing
- Following are the steps to submit the reports:
- Download the modules (data entry and validation)
- Receive and validate the documentary requirements from employees
- Update employees exemption using the UEE Data Entry Module
- Generate the monthly CSV Report
- Attach to email the generated CSV file located at C:\BIRF2305 (file name format – 999999999_99999_mmddyyyy_2305_username.csv)
- Send to BIRFORM_2305@bir.gov.ph – Subject: TIN_Branch_mmddyyyy_2305 (e.g. 123456789_000_07312015_2305
- Receive e-mail confirmation (Annex C)
Submission of Supporting Documents
- Employee shall submit the accomplished BIR Form 2305 together with the required documents to employer
- Employer validates the completeness of documents
- Submit the following every 10th of following month to the RDO or LTDs:
- Accomplished BIR Form 2305 signed by both employer and employee with attachments
- System-generated email notifcation
- Printed Monthly Alphalist of Employees and Information Update (Alpha_1) report
Venue of Submission
- Non-large Taxpayer Employers – RDO having jurisdiction over the place of office of the employer
- Large Taxpayer-Employers – Large Taxpayers Assistance Division (LTAD), Excise Large Taxpayers Regulatory Division (ELTRD), Large Taxpayers Division (LTD-Makati/Cebu)
Just like any other initiatives of the BIR the main objectives are to make the process more efficient and make the data capture more effective. This means additional work for the employer-taxpayer but may is more convenient on the part of the employee who only needs to submit the required documents to the employer and the latter will do the legwork.
In case you need a step-by-step guidance to navigate into the modules, download the job aid file using the link below.
Let us know what you think about this update. 😉