Single employer although the income of which has been

single employer, although the income of which has been
correctly withheld, but whose spouse is not entitled to
substituted filing
o marginal income earners

 Non-resident citizens receiving income from sources within the
Philippines
 Aliens, whether resident or not, receiving income from sources
within the Philippines
 Corporations no matter how created or organized including
partnerships


o domestic corporations receiving income from sources within
and outside the Philippines
o foreign corporations receiving income from sources within the
Philippines
o taxable partnerships

 Estates and trusts engaged in trade or business
8) Who are not required to file Income Tax returns?
a. An individual who is a minimum wage earner
b. An individual whose gross income does not exceed his total personal and additional
exemptions
c. An individual whose compensation income derived from one employer does not
exceed P 60,000 and the income tax on which has been correctly withheld
d. An individual whose income has been subjected to final withholding tax (alien
employee as well as Filipino employee occupying the same position as that of the alien
employee of regional headquarters and regional operating headquarters of multinational
companies, petroleum service contractors and sub-contractors and offshore-banking
units, non-resident aliens not engaged in trade or business)
e. Those who are qualified under “substituted filing”. However, substituted filing applies
only if all of the following requirements are present :

 the employee received purely compensation income (regardless
of amount) during the taxable year
 the employee received the income from only one employer in the
Philippines during the taxable year
 the amount of tax due from the employee at the end of the year
equals the amount of tax withheld by the employer
 the employee’s spouse also complies with all 3 conditions stated
above
 the employer files the annual information return (BIR Form No.
1604-CF)
 the employer issues BIR Form No. 2316 (Oct 2002 ENCS version )
to each employee.
9) Who are exempt from Income Tax?
 Non-resident citizen who is:

a) A citizen of the Philippines who establishes to the satisfaction of the Commissioner
the fact of his physical presence abroad with a definite intention to reside therein
b) A citizen of the Philippines who leaves the Philippines during the taxable year to
reside abroad, either as an immigrant or for employment on a permanent basis
c) A citizen of the Philippines who works and derives income from abroad and whose
employment thereat requires him to be physically present abroad most of the time
during the taxable year
d) A citizen who has been previously considered as a non-resident citizen and who
arrives in the Philippines at any time during the year to reside permanently in the
Philippines will likewise be treated as a non-resident citizen during the taxable year in
which he arrives in the Philippines, with respect to his income derived from sources
abroad until the date of his arrival in the Philippines.