Are you an individual who earns purely commission-based income? You’ll need to register for and file BIR Form 1902. This form is used to report your income and pay the necessary taxes. Filing this form is essential, so be sure to do it as soon as possible. Let’s take a closer look at what this form entails and how to complete it.
What is the 1902 BIR Form Purpose?
The BIR Form 1902 is an application for registration for individuals earning compensation income purely. This form determines an individual’s tax liability and ensures that the correct taxes are being paid. The information in this form is used to calculate the valid tax owed and issue a Certificate of Registration.
This form must be filed by all individuals earning compensation income, regardless of whether they are locals or aliens. The form must be filed within 10 days from the date of employment or when the first income was received.
Related: BIR Form 1904: A Comprehesive Guide
Who Are Required To Use BIR Form 1902?
All individuals who earn compensation income purely are required to use BIR Form 1902. This includes both locals and aliens working in the Philippines.
Compensation income refers to any remuneration, prizes, and another employee benefits an individual receives in exchange for services rendered. It can include salaries, wages, commissions, honoraria, allowances, and other similar benefits.
What Information is Required in BIR Form 1902?
The following information is required in BIR Form 1902:
Part I: Taxpayer or Employee Information
- Civil Status
- TIN (if available)
- RDO Code and Address
Part II: Spouse Information (If applicable)
- Employment status of the spouse
- Spouse Name
- Spouse TIN and employer
Part III: For Employees with Two or More Employers (Multiple Employments) Within the Calendar Year
- Type of Multiple Employment
It is successive or concurrent employment. Successive employment is an employment relationship that exists while another still subsists. On the other hand, concurrent employment is an employment situation where an individual has two or more employers simultaneously.
Part IV: Primary/Current Employer Information
- Type of Registering Office
- Employer’s Name
- Contact Details
How to File BIR Form 1902?
The BIR Form 1902 must be filed by the employee within 10 days from the date of employment or when the first income was received.
Step 1: Fill up the Taxpayer or Employee Information
In this section, you must fill up the PhilSys Number (PSN), Taxpayer Type, and Taxpayer Identification Number (TIN).
PhilSys Number (PSN): The PhilSys Number (PSN) is a unique, permanent, and random identification number that every Filipino citizen and resident alien can obtain from the Philippine Statistics Authority (PSA).
Taxpayer Type: Select the correct taxpayer type from the options provided.
Taxpayer Identification Number (TIN): The Taxpayer Identification Number (TIN) is a unique identification number assigned to individuals and businesses by the Bureau of Internal Revenue (BIR).
Step 2: Fill Up The Spouse Information (If Applicable)
This section must be filled up if the taxpayer is married. The following information is required:
Employment status of spouse: The spouse’s employment status must be stated in this section. You may skip this section if you’re a single, divorced, or widowed taxpayer.
Step 3: Fill Up The Primary/Current Employer Information
This section must contain information about the taxpayer’s primary or current employer. The following information is required:
Type of Registering Office: The registering office must be stated in this section. You will check the Head office if the employer’s head office is the one registering the employee. Otherwise, you will check the branch if it is the branch that will register the employee.
Employer’s Name: The employer’s name must be stated in this section.
Contact Details: The employer’s contact information must be provided in this section. This includes the email address, telephone number, and mobile number.
Step 4: Affix your Signature
The taxpayer must affix their signature on the BIR Form 1902. The signature indicates that the information provided is true and correct.
Step 5: Submit the BIR Form 1902 to your Employer
After you have accomplished and signed the BIR Form 1902, you may now submit it to your employer. Your employer will be the one to file it with the concerned BIR office.
What are the Requirements?
- Any identification issued by a government body shows the applicant’s name, address, and birthdate.
- Marriage Contract, if applicable.
- Employment Permit from the Department of Labor and Employment (DOLE)
- Working Permit or photocopy of duly received Application for Alien Employment (AEP) by the Department of Labor and Employment (DOLE)
Frequently Asked Questions- BIR Form 1902
How long is the BIR Form 1902 valid?
The BIR Form 1902 is valid as long as you stay in the same employer.
Do I need to file a new BIR Form 1902 if I changed employers?
Yes. You are required to file a new BIR Form 1902 if you change employers.
I am an employee with multiple employers. Do I need to file several BIR Form 1902s?
No. You only need to file one (1) BIR Form 1902 regardless of the number of employers you have. Make sure to include all your employer information in Part III of the form.
What happens if I don’t file a BIR Form 1902?
If you don’t file a BIR Form 1902, you will not be able to get a Taxpayer Identification Number (TIN). Without a TIN, you will not be able to process any transaction with the Bureau of Internal Revenue (BIR), such as filing your annual income tax return.
Can I file the BIR Form 1902 online?
No. The BIR Form 1902 can only be filed manually.
I am an OFW. Do I need to file a BIR Form 1902?
Yes. Even if you are an OFW, you must file a BIR Form 1902.
The BIR Form 1902 is a form that needs to be accomplished by all employees, whether local or alien, who will be receiving compensation income purely. The form is available for download on the Bureau of Internal Revenue (BIR) website.
Be sure to carefully read and follow the instructions on filling out the form. Once you have accomplished the form, please submit it to your employer so they can file it with the concerned BIR office.
Not filing a BIR Form 1902 may prevent you from getting a Taxpayer Identification Number (TIN), which is necessary for processing transactions with the BIR, such as filing your annual income tax return.