If you're an employee earning purely compensation income, whether as a resident citizen, non-resident citizen, or even an alien employee working in the Philippines, it's essential to know about BIR Form No. 1902. This form is required for registering individuals who fall under these categories with the Bureau of Internal Revenue (BIR).
What is BIR Form No. 1902?
BIR Form No. 1902 is the Application for Registration for Individuals Earning Purely Compensation Income. It is mandatory for all individuals receiving income solely from employment in the Philippines to file this form. The form is used to register taxpayers who earn compensation income, whether they are new or old employees.
The registration process helps the Bureau of Internal Revenue track and collect taxes from employees, ensuring that the tax liabilities are met correctly and on time. Whether you are a Filipino citizen or a foreign national employed in the country, this form will assist in registering your income and making sure you're complying with the BIR's tax regulations.
Who Needs to File BIR Form No. 1902?
Any employee who receives compensation income is required to file BIR Form No. 1902. This includes:
- Resident Citizens – Filipino citizens residing in the Philippines and earning income from local employers.
- Non-Resident Citizens – Filipino citizens who reside outside the Philippines but earn income from sources within the country.
- Alien Employees – Foreign nationals who are employed by a company or employer in the Philippines, earning income from local employment.
When Should BIR Form No. 1902 be Filed?
The filing of this form must be completed within 10 days from the date of employment. In case you're already employed, you need to file the form before any tax payments are due, or before submitting any tax returns or declarations. Here are some key points regarding the filing date:
- Within Ten (10) Days: Employees should file the form within 10 days from the date of employment.
- Before the Payment of Tax: If you're due to pay any taxes, you must file the form beforehand.
- Before Filing Returns: The form should also be filed before any returns or declarations are submitted.
It’s important to remember that failing to meet this deadline could result in penalties or delays in your tax compliance.
Where Should BIR Form No. 1902 Be Filed?
BIR Form No. 1902 must be filed with the Revenue District Office (RDO) that has jurisdiction over your place of residence or place of employment. Your employer or the BIR's jurisdictional RDO can provide guidance on where exactly to file the form.
Key Takeaways
- BIR Form No. 1902 is for individuals earning purely compensation income, whether a resident citizen, non-resident citizen, or alien employee.
- The form must be filed within 10 days of employment, before tax payments, or before filing tax returns.
- It should be filed with the RDO that has jurisdiction over the employee's place of residence or employment.
Conclusion
As an employee in the Philippines, staying compliant with BIR tax regulations is essential. Filing BIR Form No. 1902 is a crucial first step in ensuring that you're properly registered and that your taxes are accurately reported. It’s a simple process that can help avoid unnecessary penalties or issues down the line. Whether you're a new hire or an existing employee, make sure to file the form on time and with the right jurisdictional office to keep your tax affairs in good standing.