If you changed employers in the middle of the year in the Philippines, the usual answer is yes, you need to file BIR Form 1700 for that taxable year if all your income was purely from employment. The reason is simple but often misunderstood: once you had two employers in the same calendar year, even if they were consecutive and not simultaneous, you are generally not qualified for substituted filing. This article explains when BIR Form 1700 is required, what your employers should give you, how to file, what documents to prepare, and the common problems employees face when transferring jobs mid-year.
Quick Answer: Do You Need to File BIR Form 1700 When You Change Employers Mid-Year?
In most cases, yes.
BIR Form 1700 is the annual income tax return used by individuals earning purely compensation income, including certain non-business or non-profession income. The form itself includes a schedule for reporting compensation and tax withheld from multiple employers, which is exactly the situation many employees face after resigning from one company and joining another within the same calendar year.
| Situation | Do you file BIR Form 1700? | Why |
|---|---|---|
| You had only one employer for the entire year, and your tax was correctly withheld | Usually no | You may qualify for substituted filing |
| You resigned from Employer A and joined Employer B in the same year | Yes | You had successive employers in one taxable year |
| You had two employers at the same time | Yes | You had multiple employers |
| Your new employer consolidated your previous Form 2316 | Yes | BIR says employees with consecutive employers are still not qualified for substituted filing |
| You had salary plus freelance, business, or professional income | Not Form 1700 | You usually file a different income tax return, such as BIR Form 1701 or another applicable form |
| You are an OFW earning income solely from abroad | Usually no Philippine annual ITR for that foreign income | Different rules apply to income earned solely abroad |
BIR Revenue Memorandum Circular No. 50-2018 is direct on this point: individuals with consecutive employers are not qualified for substituted filing and are required to file an annual income tax return. The same issuance also states that employees receiving compensation from two or more employers, whether successively or concurrently during the taxable year, must file an annual income tax return regardless of the amount of compensation income.
What Is BIR Form 1700?
BIR Form 1700 is the Annual Income Tax Return for Individuals Earning Purely Compensation Income, including non-business or non-profession income. In plain language, it is the return used by employees whose income came from salaries, wages, bonuses, allowances, and other employee compensation, and who did not earn business, professional, or freelance income during the year.
You normally use BIR Form 1700 when:
- You are an employee earning purely compensation income;
- You had more than one employer during the year;
- You are not qualified for substituted filing;
- You need to report total annual compensation from all employers;
- You need to credit the taxes already withheld by your employers through BIR Form 2316.
Form 1700 is not the correct return if you also earned income from self-employment, freelancing, business, practice of profession, or mixed income. In that situation, the BIR guidance points employees to the appropriate annual return for self-employed or mixed-income taxpayers, not Form 1700.
The Legal Basis: Substituted Filing vs. Personal Filing
What substituted filing means
Substituted filing means your employer’s year-end withholding tax filing and your BIR Form 2316 serve as your annual income tax return. You do not personally file BIR Form 1700 because the employer’s filing “substitutes” for your own return.
Under Section 51-A of the National Internal Revenue Code, as inserted by Republic Act No. 10963, also known as the TRAIN Law, an individual earning purely compensation income from only one employer in the Philippines for the calendar year is not required to file an annual income tax return if the income tax has been correctly withheld by the employer. In that case, the employer’s certificate of withholding is treated as the substituted filing of the employee’s return. (Supreme Court E-Library)
That “only one employer” requirement is the detail many employees miss.
Why a mid-year job change usually disqualifies you
If you changed jobs from Employer A to Employer B in the same calendar year, you had successive employers. You may have worked for only one employer at a time, but for tax purposes, you still had more than one employer during the taxable year.
BIR rules specifically list employees receiving compensation from two or more employers, whether concurrently or successively, as persons who are not qualified for substituted filing. This is also reflected in older BIR guidance on substituted filing, which identifies individuals with two or more employers at any time during the taxable year as not qualified for substituted filing. (Supreme Court E-Library)
What if your new employer annualized your income?
Many HR or payroll departments ask for your previous employer’s BIR Form 2316 so they can annualize your compensation and compute the correct withholding tax for the rest of the year. This is proper payroll practice, but it does not automatically make you qualified for substituted filing.
BIR RMC No. 50-2018 directly addresses this issue. Even if the latest employer consolidates the employee’s previous employment income and conducts the year-end adjustment, individuals with consecutive employers are still not qualified for substituted filing and must file an annual income tax return.
Why Your New Employer Asks for Your Previous BIR Form 2316
When you leave a company, your previous employer should issue BIR Form 2316 covering the compensation paid and tax withheld during your employment. BIR guidance requires the employer to issue the certificate on or before January 31 of the following year, or on the day of the last payment of wages if your employment is terminated before year-end. (Supreme Court E-Library)
Your new employer asks for that previous Form 2316 because it needs to know:
- How much taxable compensation you already earned earlier in the year;
- How much tax was already withheld;
- Whether additional withholding should be made before year-end;
- How to reflect previous employer income in the year-end Form 2316.
This helps prevent under-withholding. For example, if your previous employer treated your January-to-March income as low enough to have little or no tax, but your full-year income after joining your new employer puts you in a higher tax bracket, your current employer may need to withhold more tax near year-end.
Still, even if your current employer properly consolidates your previous employer’s Form 2316, you generally remain responsible for filing BIR Form 1700 because you had two employers in the same taxable year.
Step-by-Step Guide: How to File BIR Form 1700 After Changing Employers
1. Confirm that Form 1700 is the right return
Use BIR Form 1700 only if your income for the year was purely compensation income, such as salary, wages, bonuses, taxable allowances, commissions as an employee, and similar employment income.
Do not use Form 1700 if you also earned:
- Freelance income;
- Professional fees;
- Business income;
- Online selling income;
- Consultancy income outside employment;
- Mixed income from employment and self-employment.
If you had both employment and non-employment income, the BIR’s own guidance distinguishes Form 1700 for purely compensation earners from the return used by self-employed or mixed-income taxpayers.
2. Collect BIR Form 2316 from every employer
You should have one BIR Form 2316 from each employer that paid you compensation during the year.
For a mid-year job change, this usually means:
- One Form 2316 from your previous employer covering the period before your resignation; and
- One Form 2316 from your current employer covering the rest of the year and, if applicable, showing previous employer details.
If your previous employer has not issued your Form 2316, request it in writing from HR or payroll. Ask for a signed copy, and keep your payslips, final pay computation, certificate of employment, and email trail as supporting records. The Form 2316 is important because it is your strongest proof of compensation income and tax withheld.
3. Check your TIN, RDO, name, and registered address
Before filing, check that your Taxpayer Identification Number, Revenue District Office, name, date of birth, and registered address are correct. BIR Form 1700 specifically asks for your RDO code, registered address, and other taxpayer details. The form also notes that if your registered address is different from your current address, you should update your registration with the BIR using the appropriate registration update process, such as BIR Form 1905.
This matters because incorrect registration details can cause practical problems later, especially when you need a tax clearance, transfer of RDO, proof of filing, or correction of records.
4. Add your taxable compensation from all employers
Your Form 1700 should reflect your compensation for the full calendar year. You do not file one return per employer. You file one annual return that consolidates your compensation income and tax credits.
BIR Form 1700 contains a schedule where you can list multiple employers, their TINs, the compensation income earned from each, and the tax withheld by each employer. If there are more employers than the form space allows, the form provides for an additional sheet.
5. Apply the correct income tax rates
For taxable year 2023 onward, the TRAIN Law tax schedule for individuals provides a graduated tax rate beginning at zero tax for taxable income not over ₱250,000, then increasing by bracket up to 35% for taxable income over ₱8,000,000. (Supreme Court E-Library)
For employees, the practical computation is usually:
- Add your taxable compensation from all employers;
- Apply the annual graduated tax table;
- Subtract total taxes already withheld by all employers;
- Pay the remaining tax due, if any.
The taxes withheld by your employers are creditable against your annual income tax due. The NIRC recognizes creditable withholding at source as tax that may be credited against the recipient’s income tax liability. (Supreme Court E-Library)
6. File electronically, unless manual filing is allowed
For current practice, employees commonly file through the BIR’s electronic filing platforms, especially the Offline eBIRForms Package if they are not enrolled in eFPS. BIR RMC No. 20-2026 identifies electronic filing platforms for annual income tax returns, including eFPS, Offline eBIRForms, and certified tax software providers, and specifically lists BIR Form 1700v2018 for eBIRForms filing.
When using eBIRForms, save a copy of the generated return and keep the email confirmation. BIR RMC No. 20-2026 also instructs taxpayers using Offline eBIRForms to capture a screenshot of the pop-up message showing that the email confirmation was generated, because that screenshot can serve as proof of filing and successful submission if the confirmation email is delayed.
7. Pay any tax due
If your Form 1700 shows tax payable, pay it through authorized channels. BIR guidance for annual income tax filing recognizes electronic payment through channels such as eFPS, Land Bank Link.BizPortal, UnionBank payment facilities, DBP PayTax Online, MyEG, and certain e-wallet or online payment options, depending on availability.
If the income tax due exceeds ₱2,000, the NIRC allows payment in two installments: the first upon filing the return, and the second on or before October 15 following the close of the calendar year. If the second installment is not paid on time, the unpaid amount becomes due and subject to delinquency penalties. (Supreme Court E-Library)
8. Keep complete proof of filing and payment
Keep both digital and printed copies of:
- Filed BIR Form 1700;
- All BIR Forms 2316;
- eBIRForms confirmation email;
- Screenshot of eBIRForms submission pop-up;
- Payment confirmation or bank validation;
- Supporting payslips and final pay documents;
- Any correspondence with HR, payroll, or the BIR.
This is especially important if you later apply for a loan, visa, immigration benefit, government accreditation, tax clearance, or employment abroad.
Documents You Should Prepare
| Document or information | Why you need it |
|---|---|
| TIN | Required for Form 1700 filing |
| RDO code | Needed in the return and for proper BIR records |
| Registered address | Must match your BIR registration records |
| BIR Form 2316 from previous employer | Shows income and tax withheld before resignation |
| BIR Form 2316 from current employer | Shows income and tax withheld after transfer |
| Payslips and final pay computation | Useful if Form 2316 is delayed or needs verification |
| Valid government ID | Useful for RDO or bank transactions |
| BIR Form 1905 or registration update record | Needed if you must update address, RDO, or registration details |
| eBIRForms confirmation email or screenshot | Proof that the return was filed |
| Payment confirmation | Proof that tax payable was paid |
Deadline, Fees, and Penalties
The ordinary deadline for filing the annual income tax return of calendar-year individual taxpayers is on or before April 15 of the following year. For the 2025 annual income tax return, however, BIR RMC No. 30-2026 extended the filing, payment, and submission deadline from April 15, 2026 to May 15, 2026. This was a specific extension for that filing season and should not be assumed to apply every year.
There is generally no separate “filing fee” just for filing Form 1700. The cost depends on whether your return shows tax payable. If you file late, pay late, or file in the wrong manner, penalties may apply.
Under the Tax Code as amended, failure to file a return or pay tax due on time may result in a 25% surcharge, plus interest and compromise penalties where applicable. Republic Act No. 11976, also known as the Ease of Paying Taxes Act, amended several tax administration rules and also provides special concessions for qualified micro and small taxpayers, but ordinary employees should not assume those concessions automatically apply without checking the relevant BIR classification and issuance. (Lawphil)
Practical Computation Example
Suppose you worked for Employer A from January to March, then Employer B from April to December.
| Item | Amount |
|---|---|
| Taxable compensation from Employer A | ₱180,000 |
| Tax withheld by Employer A | ₱0 |
| Taxable compensation from Employer B | ₱620,000 |
| Tax withheld by Employer B | ₱72,500 |
| Total taxable compensation | ₱800,000 |
Using the 2023-onward tax table, taxable income over ₱400,000 but not over ₱800,000 is taxed at ₱22,500 plus 20% of the excess over ₱400,000. For ₱800,000 taxable income, the annual tax due is ₱102,500. (Supreme Court E-Library)
| Computation | Amount |
|---|---|
| Annual income tax due | ₱102,500 |
| Less: tax withheld by Employer A | ₱0 |
| Less: tax withheld by Employer B | ₱72,500 |
| Remaining tax payable | ₱30,000 |
In this example, the employee files BIR Form 1700 and pays ₱30,000, unless an applicable installment option is used.
Now suppose the employee’s total tax due equals the total tax already withheld. The employee may have zero tax payable, but still generally files BIR Form 1700 because the issue is not only whether tax remains payable. The issue is that the employee had more than one employer in the same taxable year and is not qualified for substituted filing.
Common Scenarios When Changing Employers Mid-Year
You resigned in March and joined another company in April
This is the classic mid-year transfer case. You had two successive employers in one calendar year. You usually need to file BIR Form 1700, even if your new employer received your previous Form 2316 and adjusted your withholding tax.
Your new employer says they already “filed your taxes”
Clarify what this means. Your current employer may have filed its own withholding tax returns and issued your Form 2316. But if you had a previous employer in the same year, you are generally not covered by substituted filing. BIR guidance says consecutive employers disqualify the employee from substituted filing.
Your previous employer did not give your Form 2316
This is a common bottleneck. Start requesting early, preferably before January 31 or immediately after separation. If the deadline is close, gather payslips, final pay computation, tax withheld summaries, and written communications with HR or payroll.
Practically, the BIR and payment centers rely heavily on Form 2316 because it proves the amount of tax already withheld. Claiming withholding credits without proper proof can create problems if the return is reviewed later.
You had two part-time payroll jobs
If both companies treated you as an employee and withheld compensation tax, you had multiple employers. You should generally file Form 1700 if all your income was employment income.
If one company treated you as an independent contractor or professional, then you may not be a purely compensation earner. In that case, Form 1700 may not be the correct return.
You changed employers but your total taxable income was below ₱250,000
The annual tax table imposes zero tax on taxable income not over ₱250,000. But BIR guidance on substituted filing still treats employees with two or more employers during the taxable year as required to file an annual income tax return, regardless of the amount of compensation income. (Supreme Court E-Library)
This means you may file a return showing no tax payable.
You are a foreigner employed in the Philippines
Foreign employees working in the Philippines may also need to file BIR Form 1700 if they earn purely compensation income and are not qualified for substituted filing. BIR Form 1700 includes taxpayer classifications for employees under regular rates and for non-resident aliens not engaged in trade or business, who may be subject to a different tax treatment.
For most foreign employees, the key practical questions are:
- Were you employed by a Philippine employer?
- Was Philippine compensation tax withheld?
- Did you have one employer or multiple employers in the same year?
- Are you classified as a resident alien, non-resident alien engaged in trade or business, or non-resident alien not engaged in trade or business?
The answer can affect the tax rate, form entries, and supporting documents.
You are a Filipino working abroad
The Ease of Paying Taxes Act amended Section 51 of the Tax Code to state that an overseas contract worker or overseas Filipino worker earning income solely from abroad is not required to file an income tax return for that income. (Lawphil)
But if you earned Philippine-source compensation from a Philippine employer during the year, or you returned to the Philippines and worked locally, the analysis may change. The important distinction is whether the income was earned solely abroad or from Philippine employment.
Frequently Asked Questions
Do I need to file BIR Form 1700 if I changed employers mid-year?
Yes, in most cases. If you moved from one employer to another within the same calendar year, you had successive employers. BIR guidance says individuals with consecutive employers are not qualified for substituted filing and must file an annual income tax return.
What if my new employer consolidated my previous Form 2316?
You still generally need to file Form 1700. Consolidation helps compute correct withholding, but BIR has specifically said that employees with consecutive employers are still not qualified for substituted filing even if the latest employer consolidates the previous employment income.
Is Form 2316 enough if I changed employers?
Usually, no. Form 2316 may serve as your return only when you qualify for substituted filing, which generally requires purely compensation income from only one employer in the Philippines for the calendar year and correct withholding. If you had two employers, your Forms 2316 are supporting documents for your Form 1700. (Supreme Court E-Library)
What if I had zero tax payable after combining both employers?
You may still need to file Form 1700. Having no remaining tax payable is different from being qualified for substituted filing. The filing requirement arises because you had more than one employer during the taxable year.
What if I also had freelance or business income?
Do not use BIR Form 1700 if you had freelance, business, professional, or mixed income. Form 1700 is for purely compensation income. If you had mixed income, you usually need the applicable annual income tax return for self-employed or mixed-income individuals.
What if my previous employer refuses to give Form 2316?
Request it formally from HR or payroll and keep written proof of your request. Employers are required to issue the certificate by the proper deadline or upon termination of employment. If the deadline is near, gather payslips, final pay records, and tax withheld details so you can explain the issue at the RDO or eLounge if needed. (Supreme Court E-Library)
Can I file BIR Form 1700 online?
Yes, many taxpayers file through electronic platforms such as eBIRForms, eFPS, or certified tax software providers. BIR RMC No. 20-2026 identifies BIR Form 1700v2018 as available in the Offline eBIRForms Package for annual income tax return filing.
What is the deadline for filing Form 1700?
The ordinary deadline is April 15 following the taxable year. For taxable year 2025 returns, BIR RMC No. 30-2026 extended the deadline to May 15, 2026. Always check the BIR issuance for the specific filing year because extensions are not automatic.
Can I pay the tax due in installments?
If the income tax due exceeds ₱2,000, the Tax Code allows payment in two installments: the first upon filing and the second on or before October 15 following the close of the calendar year. (Supreme Court E-Library)
What happens if I do not file even though I changed employers?
If you were required to file but failed to do so, you may face penalties if the BIR later determines non-filing, late filing, or late payment. These may include surcharge, interest, and compromise penalties depending on the circumstances. (Lawphil)
Key Takeaways
- If you changed employers mid-year, you usually need to file BIR Form 1700 if all your income was purely from employment.
- Substituted filing generally applies only when you had one employer in the Philippines for the entire calendar year and the correct tax was withheld.
- BIR has specifically said that employees with consecutive employers are not qualified for substituted filing, even if the latest employer consolidates the previous employer’s income.
- Get BIR Form 2316 from every employer you had during the year.
- File one consolidated annual return, not one return per employer.
- If you had freelance, business, professional, or mixed income, Form 1700 is usually not the correct form.
- Keep your filed Form 1700, Forms 2316, confirmation email, screenshots, and payment proof because these are often needed for loans, visas, employment, and future BIR transactions.