BIR Form 2305 is primarily used in updating your Tax exemption status, change of employer, type of employment or even the change of working status of your spouse. For example If you got a wife who quit her job to stay at home and look after your children you need BIR Form 2305 to tell them that you are the sole earner of your family in this case a little tax exemption status.
First here is a PDF file of BIR Form 2316 that you can download
Form 2305 Updated Guide and DownloadAs of January 2019, there has been an update with the definition, here’s what the Bureau of Internal Revenue described the BIR Form 2305:
A Certificate to be accomplished and issued in case of increase or decreases in exemption, change of status, change in the person of employer, change in the type of employment, acquiring employment after having registered as engaged in business or exercise of profession, change in the working status of the spouse, execution of the “waiver to claim the Additional Exemption” by the husband, or revocation of the previously executed “waiver to claim the Additional Exemption” by the husband.
– Bureau Of Internal Revenue BIR Form 2305 Definition
Well I guess that is self explanatory. BIR Form 2305 also known as Certificate of Update of Exemption and of Employer’s and Employee’s Information primary use is to update the information of a Taxpayer’s Information. These updates of course is being done to have Tax Exemption, or to update Tax information to avoid trouble with BIR Tax collectors.
I believe that the Additional Exemptions part of the BIR Form 2305 is one of the most important part where you need to fill up simply because that’s where you will put in your children who will be your dependents and with that means another tax exemption.
The part says:
Names of Qualified Dependent Children (refers to a legitimate, illegitimate, or legally adopted child chiefly dependent upon & living with the taxpayer; not more than 21 years of age, unmarried, and not gainfully employed; or regardless of age, is incapable of self-support due to mental or physical defect)
– BIR Form 2305 Additional Exemptions
Keep in mind the part where it says “legitimate, illegitimate” so if you have a live in partner and you are not married he/she will still qualify as long as he/she is not more that 21 years of age.
The BIR form 2305 or Certificate of Update of Exemption and of Employer’s and Employee’s Information must be filed on the RDO where the taxpayer is registered, within ten (10) days after such change or event. (This form is given to the main employer, copy furnished the secondary employer).
Keep in mind that:
In short if your employer tells you to go to the BIR office to file your BIR Form 2305 you will just waste your time because no they will just turn you down. Fill up the form and pass it to you employer along with the supporting documents.
There’s a lot of confusion among employees on what to use between BIR Form 2305 and BIR form 1905 in regards to RDO change. With that said even though the BIR Form 2305 says “Update of Employees information” the correct form to use if the BIR Form 1905 or Application for Registration Information Update.
With that said which one you should take care first? Of course the BIR form 1905 so that the information on BIR form 2305 will be processed on the correct RDO. Keep that in mind folks.
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