What's the difference between the BIR Form 2305 & 1905?

Taken from the movie "Tangled"

There has been a lot of questions regarding these forms. Well, for a better understanding of these forms please take a look at each of these forms first so when we discuss this it won't that hard to understand. Here's a link to the BIR Form 2305 & 1905.

The BIR Form 2305 is "Certificate of Update of Exemption and of Employer's and Employee's Information". So if you are UNEMPLOYED or WALANG TRABAHO, this form is not for you. To put it simply it is no use to you yet.

The update of exemption is if you have an additional qualified dependent that you need to declare and register with the BIR. So you can be granted an ADDITIONAL EXEMPTION which can be applied and deducted from your taxable income. In short you have lesser tax to pay. Additional money for our family's. An additional 25K for every Qualified Dependent Child.

This is why it is important to know that our government is extending this assistance for people who have qualified dependents. So we if you have a qualified dependent you should update your exemption with the BIR thru this form.

Again this would be not be of use to you if you do not have a job or an employer to apply this exemption. So it can only be of value to you if you have a job or an employer.

The 2305 form is also required by our NEW EMPLOYERs. This is to inform your BIR Branch or your Revenue District Office where your employer files their taxes that you are employed with this company. As the 2305 has a portion where the EMPLOYERs are required to fill out.

Now take note that your TIN should also be registered with the BIR branch of your NEW EMPLOYER otherwise the BIR Branch of your EMPLOYER cannot process your application for update using this form.

So if your RDO or BIR branch is not the same with your NEW EMPLOYER then you need to transfer if using BIR Form 1905.

The documentary requirements for this is the birth certificate of your qualified dependents.

For the BIR Form 1905 "Application for Registration Information Update". Take note this form is for for Updating / Cancellation of Registration / Cancellation of TIN / New Copy of TIN card / New copy of Certificate of Registration.

So there are several things this form can do. So do take a look at this form. If you are unemployed. Say for example you were previously employed in Makati area. Under BIR Revenue District Office (RDO) No. 49 North Makati.

Lets just say this is your first job. And this is the RDO where you first requested a TIN. So this is where your TIN registration is currently registered. Being that your employer is likewise under this RDO. This is where your previous employer files and pay their taxes.

Take note again we can only have one TIN for our entire lifetime. Yes, only one. The BIR will penalize people for having more than one TIN. So do take this in to account.

Now having said this. You resigned for some reason. And you have yet to find another employer. Let say your address is no where near the area of your previous job. For example your address is around the Cubao area. This area is under RDO No. 40.

You wish to update the address of your TIN Registration and you would like to transfer it in Cubao. The 1905 is the appropriate form for this. Now where do we file this?

Your TIN as we said is still with your original RDO where you first got it. It does not automatically transfer to your home address unless you inform BIR about the changes. Any RDO can view your registration but it is lock in under RDO 49 your original RDO.

So unless you request your home RDO to transfer your TIN registration to the RDO nearest your home or the RDO having jurisdiction of your home address. Your TIN registration will remain with your home RDO. This is usually advisable if your home address is in the province.

Like people who worked in Manila for a time and plan to go back to their hometown in the province. They should request this transfer before they go back to their hometown. But if they did not do so. See my other article on how you can transfer your TIN registration if your in the province.

Take note again. The RDO who will process and accept your application of update is the RDO where your TIN is currently registered. If you gave this to an RDO which does have jurisdiction over your TIN, they will be unable to process any request for update.

This form is also for request for TIN Card whether employed or unemployed. If you lost your TIN card this is the form that you should use. There are a lot of things this form can do. So do get a copy of this for future reference.