Annual Income Tax Return (ITR) Requests in Philippine Scholarship Programs
A comprehensive legal-practical guide for students, parents, scholarship administrators, and counsel
1. What counts as an “ITR” in the Philippines?
| Form | Statutory basis | Who files | Key deadline | Notes for scholarship screening |
|---|---|---|---|---|
| BIR Form 1700 | National Internal Revenue Code (NIRC), §51(A), as amended by the TRAIN Law (R.A. 10963) | Individuals earning purely compensation income not qualified for substituted filing | 15 April following the close of the calendar year | Rare among low-income families; most rank-and-file employees get Form 2316 instead |
| BIR Form 1701 | NIRC §52(A) | Self-employed or mixed-income individuals using graduated rates | 15 April | Often requested from market vendors, tricycle operators, freelancers |
| BIR Form 1701-A | NIRC §52(A), Revenue Regulations (RR) 11-2018 | Sole-proprietors & professionals who opt for 8 % gross or graduated rates but no other income | 15 April | Simplified two-page return; common among micro-entrepreneurs |
| BIR Form 2316 (Certificate of Final Tax Withheld on Compensation) | NIRC §79 | Rank-and-file employees whose tax was fully withheld (“substituted filing”) | Employer must furnish 31 Jan; treated as ITR substitute | CHED, DOST & LGUs legally accept this if parents are minimum-wage or rank-and-file employees |
| Certificate of Tax Exemption | NIRC §236 (j); RMO 28-2016 | Minimum-wage earners, unemployed, OFWs, PWDs who need proof they are non-filers | Issued anytime upon application | Must be issued by the Revenue District Office (RDO); many scholarship guidelines list it as an “alternative” document |
Practical tip: A “Copy for Scholarship” is not a distinct BIR form; applicants simply submit a scanned, photocopied or certified-true copy (CTC) of any of the documents above.
2. Why do scholarship bodies insist on ITRs? (Statutory & regulatory foundations)
| Scholarship law / program | Provision mentioning family income | Documentary rule |
|---|---|---|
| R.A. 10687 (UniFAST Act) & UniFAST Implementing Rules 2015 | §4(c) “assessed on the basis of financial need” | UniFAST Board Res. 01-2020 directs SUCs to “require the latest ITR, BIR 2316, or Tax-Exemption Certificate” |
| R.A. 7687 (DOST-SEI Science & Tech Scholarship) | §4(b) annual gross family income ≤ government-set ceiling | DOST-SEI Scholarship Policies, 2024 Ed. Art. III §5(b): “submit notarised ITR of parent(s)/guardian” |
| CHED Memorandum Order (CMO) 08-2017 (Tulong Dunong & Merit Scholarship) | §9 requires determination of “financially needy” status | Annex A lists “copy of latest ITR / BIR 2316 or Certificate of Tax Exemption” |
| Local Government & Congressional scholarships (various ordinances) | Ordinance usually copies UniFAST or CHED wording | LGU processing offices cite the Data Privacy Act when collecting ITRs |
The common denominator is means-tested access: the ITR is an objective, auditable snapshot of taxable income that satisfies the Equal Protection and Due Process clauses (Art. III, 1987 Constitution). It also minimizes graft exposure of disbursing officers under the Anti-Graft and Corrupt Practices Act (R.A. 3019).
3. Legal mechanics of obtaining the document
If the return was e-filed (eFPS or eBIRForms): Print the confirmation page and the full PDF return. Both bear a unique Document Identification Number (DIN) that scholarship evaluators can verify via the BIR’s Document Tracking System.
Lost hard copy or manual filer: Request a Certified True Copy (CTC) from the Revenue District Office (RDO) where the return was originally filed.
- Accomplish BIR Form 1905 (Apply for certification).
- Pay ₱100 certification fee plus ₱30 Documentary Stamp Tax under RMC 72-2004.
- Processing time under the Anti-Red Tape Authority’s Citizen’s Charter: three (3) working days.
Parents who are minimum-wage earners / no ITR:
- File BIR Form 1905 tick box “Certification of No Income Tax Return Filed.”
- RDO issues a “Certificate of No Filing of Return.”
OFW parents:
- Present the Overseas Employment Certificate (OEC) and an Affidavit of Non-Filing to the RDO for a tax-exempt certification (they are taxed abroad, not in the PH).
Reminder: Falsifying any BIR document is punished under NIRC §255 (fine up to ₱50,000 + imprisonment) and Art. 172 of the Revised Penal Code (falsification).
4. Data-privacy checkpoints
| Requirement | Data Privacy Act (R.A. 10173) principle | Best practice for scholarship offices |
|---|---|---|
| Consent | General Data Privacy Principle (DPA §3) | Use a separate, signed Informed Consent Form referencing the ITR attachment |
| Proportionality | §18(b): collect only what is “necessary” | Mask the TIN and exact home address when storing digital copies; evaluators need only gross income figures |
| Retention & Disposal | NPC Circular 2022-01 §25 | Keep ITR copies up to 1 year after the grant expires, then shred / securely delete |
| Data-sharing | §20 & §21 | If the school forwards documents to a national agency, execute a Data-Sharing Agreement registered with the National Privacy Commission |
5. When the ITR cannot be produced: legally accepted substitutes
- BIR Form 2316 (with employer’s signature)
- Certificate of Low-Income/Indigency from the Barangay Chairman and Municipal Social Welfare Development Officer (per DSWD MC 07-2015)
- Payslips covering the last three (3) months plus an Affidavit of Non-Filing (allowed by CHED CMO 08-2017 §12)
- Notarised Statement of Assets, Liabilities and Net Worth (SALN) for informal-sector parents (jeepney driver, sari-sari store, etc.)—usually required by DOST-SEI when gross receipts cannot be proven.
Caveat: Alternative documents are discretionary. Scholarship committees retain the inherent power to deny or defer an application if income cannot be reasonably verified.
6. Important calendar guide (AY 2025-2026 cycle)
| Activity | Legal/administrative deadline | Impact on ITR requirement |
|---|---|---|
| Parents file 2024 ITR | 15 April 2025 (automatic extension to next working day if holiday/weekend per R.A. 11213) | This is the document scholarship offices will request for AY 2025-2026 |
| CHED & UniFAST open online portal | Historically 1st–2nd week of May | Applicants who filed late ITRs must present proof of filing (BIR acknowledgement receipt) |
| DOST-SEI S&T scholarships | Online system opens June; deadline Aug. 31 | DOST accepts ITRs issued after the April deadline only if RDO-stamped “Received” |
| Local Government scholarship renewal | Usually July (aligned with start of fiscal year) | Renewing scholars must submit the same ITR copy unless the family’s status materially changed |
7. Jurisprudence and opinions
| Case / Opinion | Gist | Relevance to scholars |
|---|---|---|
| BIR Ruling DA-090-2016 | Substituted filing suffices for rank-and-file employees. | Validates use of Form 2316 in lieu of Form 1700 |
| U.P. Board of Regents Res. 1324-A (2014) | Declared that tuition discounts based on socioeconomic brackets require ITR or tax-exempt certificate; denial for refusal to submit was not a violation of academic freedom. | Reinforces that ITR submission is a legitimate administrative prerequisite |
| NPC Advisory Opinion 2018-49 | Scholarship offices are personal information controllers; collecting ITR copies is permissible under DPA §12(b) “to fulfill functions of a public authority.” | Clarifies lawful basis and obviates need for data-sharing consent with other state agencies |
8. Common pitfalls & counsel’s preventive checklist
| Pitfall | Preventive measure |
|---|---|
| Parents submit photocopy without BIR “Received” stamp | Require either an e-file DIN printout or CTC from RDO. |
| Income reflected nets out loan proceeds, overtime, or tip income | Ask for gross income line on Form 2316 or Audited Financial Statements for businesses. |
| Scholar exaggerates family income to avoid disqualification ceiling | Warn that false statement voids grant under the Civil Code (Art. 1390) and may lead to estafa. |
| Data breach (e.g., Google Drive link inadvertently shared) | Implement access control & encryption; report to NPC within 72 hours per NPC Circular 16-03. |
9. Penalties & liabilities for scholarship administrators
| Violation | Governing law | Possible sanctions |
|---|---|---|
| Unlawful disclosure of ITR data | R.A. 10173 §25(c) | 1–3 years imprisonment + ₱500k–₱2 M fine |
| Failure to secure parental consent | R.A. 10173 §20(f) | NPC may order shut-down of processing; disciplinary action under CSC rules |
| Graft for favoring unqualified applicant | R.A. 3019 §3(e) | 6–15 years imprisonment; perpetual disqualification from public office |
10. Key take-aways for each stakeholder
- Students & parents: Secure the 2024 ITR early (deadline 15 April 2025). If exempt, get the RDO certificate and keep an electronic backup.
- Scholarship evaluators: Collect only what is necessary, redact sensitive fields, and maintain a Records Retention Schedule aligned with the Data Privacy Act.
- Legal counsel & compliance officers: Draft Data-Sharing Agreements and Privacy Impact Assessments; align documentary checklists with the latest CMOs and UniFAST resolutions.
- School registrars & finance offices: Train frontline staff on distinguishing authentic BIR documents from desktop forgeries (check DIN or watermark).
Suggested boiler-plate advisory (for application forms)
“Pursuant to R.A. 10173 and UniFAST Board Res. 01-2020, we collect your family’s latest Annual Income Tax Return, BIR Form 2316, or Certificate of Tax Exemption solely to establish financial need. The document will be stored in encrypted form and disposed of one (1) year after the scholarship term. By signing below, you consent to this processing.”
By mastering the interplay of tax, education, and data-privacy rules outlined above, Philippine scholarship programs can lawfully verify economic need while preserving the dignity and personal data of Filipino learners.