MANAGEMENT

Detailed explanation-1: -BIR form 2316 or Certificate of Compensation Payment/Tax Withheld shows the breakdown of all the income received by an employee from his/her employer within the applicable calendar year. In addition to income, it also shows the government deductions as well as taxes withheld within the taxable period.

Detailed explanation-2: -Is it the same as an Income Tax Return? The short answer is no. The ITR is a tax return while BIR Form 2316 is the certification of an employee’s income and taxes withheld. However, you can use the two interchangeably.

Detailed explanation-3: -Description. BIR Form No. 1701 shall be filed by individuals who are engaged in trade/business or the practice of profession including those with mixed income (i.e., those engaged in the trade/business or profession who are also earning compensation income) in accordance with Sec. 51 of the Code, as amended.