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ITR Substituted Filing

Updated

As an income earner, it is your responsibility to file your income tax returns yearly. If you’re a full-time associate in Benilde, you won’t have to file this on your own. Benilde will file your income tax return (ITR) through substituted filing.

What is substituted filing?

Substituted filing of income tax returns is a way by which a person receiving purely compensation income that has been withheld by their employer the correct tax due, is no longer required to file their individual ITR (BIR Form 1700). Instead, the employer's Annual Information Return on Income Taxes Withheld (BIR Form No. 1604-C) filed will be considered as the "substitute" ITR of the employee. The employer is required to submit a copy of its employees’ BIR Form 2316 to the BIR.

Who is qualified for substituted filing?

You can let Benilde file your ITR as a substituted filer if:

  • You receive purely compensation income regardless of the amount
  • You receive your compensation from only 1 employer in the Philippines for the calendar year (2023)
  • Your income tax has been withheld correctly by the employer (tax due equals tax withheld)
  • Your spouse also complies with the previous 3 conditions
  • The employer files BIR Form No. 1604- C
  • The employer issues each employee their BIR Form No.2316
All listed conditions must apply to qualify for substituted filing.

Who is not qualified for substituted filing?

If you’re a part-time faculty, consultant, guest lecturer, or project-based associate in Benilde, you’re not qualified for substituted filing. You need to file your own taxes and meet with an accountant to help you out with this. 

The following are also not qualified for substituted filing:

  • Individuals with two or more employers concurrently and/or successively at any time during the taxable year 
  • Employees whose income tax has not been withheld correctly result in collectible or refundable returns.
  • Individuals deriving other non-business, non-profession-related income in addition to compensation income not otherwise subject to final tax.
  • Individuals receiving purely compensation income from a single employer whose income tax has been correctly withheld but whose spouse does not qualify for substituted filing.
  • Non-resident aliens engaged in trade or business in the Philippines deriving purely compensation income or compensation income and other non-related business, non-profession-related income.

What do I need to do if I’m qualified for substituted filing?

Follow these steps if you’re qualified for substituted filing:

BIR Form 2316.gif

  1. Open and download the BIR Form 2316 sent to your Benilde email.
  2. Check the form for any corrections, then sign items #54 and #56. 
  3. Scan or save the signed file and set the file name to LASTNAME_TIN NUMBER_1231YEAR (Example, DELACRUZ_123456789_12312023). 
  4. Upload the signed form in Submission Form - BIR 2316. You can submit this on or before February 15. You can only submit the signed BIR Form 2316 to the Google form only once so make sure that your uploaded file is correct.  
If you fail to submit the signed form on or before February 15, you will be tagged as not qualified for substituted filing and you will need to file your Annual Income Tax Return Form (BIR Form 1700) to BIR on your own on or before April 15.

What will I do if I’m not qualified for substituted filing?

If you’re not qualified for substituted filing, you only need to sign item #54 in the BIR Form 2316. You don’t need to submit or upload this to the Benilde Payroll Unit. You’ll need to file your Annual Income Tax Return Form (BIR Form 1700) to BIR on or before April 15 with your signed BIR Form 2316. Meet with your accountant to help you out with this.

You can learn more about substituted filing by going to this link.

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