Certificate of Update of Exemption and of Employer’s and Employee’s Information

 

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.

 



 

By strict 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.

That’s self explanatory I supposed but if you got any clarification use our comment section below so I can assist you. By the way here’s PDF copy of the BIR Form 2305 that you can download:

Form 2305 Updated Guide and Download

BIR Form 2305 Additional Exemptions




 

I believe 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.

 

BIR Form 2305 Certificate of Update of Exemption and of Employer’s and Employee’s Information

Certificate of Update of Exemption and of Employer’s and Employee’s Information

 

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)
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.

BIR Form 2305 Filing Date / RDO office

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:

  • Employees can no longer visit and submit BIR Form No. 2305 to RDO offices and LTDs
  • BIR Form No. 2305 shall be filed electronically by the employer
  • Reports generated should be transmitted via e-mail to BIRFORM_2305@bir.gov.ph
  • Employee shall submit the accomplished BIR Form 2305 together with the required documents to employer
  • Employer validates the completeness of documents

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.

 

Difference of BIR Form 2305 and BIR Form 1905

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.

 




 

And that would be it. Thank you so much for taking time to read this guide. We promised to continue updating this to make sure this will be the most helpful guide out there. If you have any corrections, suggestions or remarks feel free to use our comment section below or email at us hello@olanap.com Adios!