In the Philippine tax landscape, BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld) is a vital document. It serves as proof of the compensation income earned and the taxes withheld by an employer during a calendar year. Under normal circumstances, Revenue Regulations (RR) require both the employer’s authorized representative and the employee to sign the form to certify the accuracy of the information.

However, legal and logistical complications arise when an employee is unable to sign due to death or incarceration. Below is a comprehensive legal guide on how to handle these specific scenarios under Bureau of Internal Revenue (BIR) rules and existing Philippine jurisprudence.

1. The General Rule on Signatories

Under RR No. 2-98, as amended, the BIR Form 2316 must be:

Signed by the Employer: Usually the President, Treasurer, or a Human Resources/Payroll Manager.
Signed by the Employee: To signify their agreement with the income and tax figures reported.

When an employee cannot sign, the employer is not relieved of its duty to issue the form. Failure to issue the 2316 is a violation of the National Internal Revenue Code (NIRC).

2. Case A: Deceased Employees

When an employee passes away during the taxable year, the employer still has a mandatory obligation to process their final pay and generate BIR Form 2316.

Who Signs?

Since the employee has lost their legal personality, the signature must be provided by their Legal Heir or the Administrator/Executor of their estate.

Priority of Signatories:
Surviving Spouse: Usually the first choice for signing.
Legal Heirs: Children of legal age or parents.
Administrator: If the estate is undergoing formal judicial settlement.
Requirements for the Employer:
The employer should require the signatory to provide a Death Certificate and proof of relationship (e.g., Marriage Contract or Birth Certificate).
The signatory should sign their name and indicate their relationship to the deceased (e.g., "Juan Dela Cruz [Sign] by Maria Dela Cruz, Surviving Spouse").

Substituted Filing Status

A deceased employee is generally not eligible for substituted filing (where the employer’s submission of the 2316 to the BIR counts as the employee's tax return). The heirs or the estate may need to file a final Income Tax Return (Form 1700 or 1701) if there are other income sources or if the tax withheld was not correct.

3. Case B: Incarcerated Employees

Incarceration does not strip an individual of their legal rights or their obligation to settle tax liabilities. However, physical absence makes the standard signing process difficult.

Who Signs?

The Incarcerated Employee (Preferred): If the employer can send the document to the detention facility (via a representative or courier), the employee can sign it themselves.
The Attorney-in-Fact: If the employee has executed a Special Power of Attorney (SPA) authorizing a specific person to handle their employment and tax affairs, that person may sign on their behalf.
Note: The SPA must specifically mention the authority to sign tax documents and government forms.

If the Employee Refuses or Cannot be Reached:

If the employee is in "incommunicado" or refuses to sign, the employer should:

Document the attempts to obtain the signature.
Annotate the form (e.g., "Employee Incarcerated - Unable to Sign").
Submit the form to the BIR as part of the Annual Alphabetical List of Employees (Alphalist). The BIR generally accepts unsigned forms in these extreme cases, provided the employer certifies that the figures are true and correct.

4. Employer Liabilities and Best Practices

The Duty to Issue

The employer's primary responsibility is the issuance of the form on or before January 31 of the succeeding year, or on the day of final payment if employment is terminated. The absence of an employee's signature does not excuse the employer from submitting the Alphalist to the BIR.

Notarization Not Required

BIR Form 2316 does not require notarization. However, if a representative (for a deceased or incarcerated person) is signing, keeping a copy of the supporting documents (SPA, Death Certificate, etc.) in the company’s HR records is crucial for audit purposes.

Comparison Summary Table

Scenario	Primary Signatory	Secondary/Alternate Signatory	Required Supporting Docs
Deceased	Legal Heir (Spouse/Child)	Executor/Administrator	Death Certificate, Proof of Kinship
Incarcerated	The Employee	Attorney-in-Fact (via SPA)	Special Power of Attorney (SPA)

5. Legal Basis

Section 80 of the NIRC: Requirement for employers to furnish a statement to the employee.
RR No. 11-2018: Updates on withholding tax and filing requirements.
Civil Code of the Philippines: Provisions on Agency (for SPAs) and Succession (for heirs).