Tax Clearance in the Philippines

How do local and foreign employees in the Philippines file for tax clearance?

The tax clearance process for local and expatriate employees in the Philippines involves the submission of different forms:

  • For local employees with one employer in the current taxable year, they are eligible for substituted filing using BIR Form 2316 submitted by the employer.
  • Foreign employees are required to submit BIR Form 1700/1701 for working visa purposes.
  • BIR Form 1700/1701 must also be submitted by local employee with more than one employer in the current taxable year.