Are you qualified for substituted tax filing?

If you’re one of the estimated 39.7 million employees in the Philippines, perhaps by now, you may have already received an e-mail or a memo from your employer asking or confirming whether you are qualified for substituted tax filing of your Annual Income Tax Return (BIR Form 1700) for calendar year 2015.
Since the Philippines follows the Pay As You Earn (PAYE) system for employee’s tax, and is carried out through the withholding tax mechanism, the local employer is constituted as the withholding agent of the Bureau of Internal Revenue (BIR). As such, it is responsible to withhold and remit taxes on the Philippine-source compensation income of its employees to the BIR, irrespective of the place of payment of the compensation.