Parents’ Income Tax Return (ITR) Requirements for Scholarship Applications in the Philippines: A Legal and Practical Guide
(All information reflects Philippine law and standard scholarship practice as of 2025.)
1. Introduction
Most merit‑ or need‑based scholarships in the Philippines ask for the applicant’s household income to determine financial capacity. The primary proof is a copy of the parent’s or guardian’s Income Tax Return (ITR) or an approved alternative (e.g., Certificate of Tax Exemption). This article consolidates the legal foundations, documentary options, and compliance tips you need to navigate the requirement.
2. Legal Bases for Requiring Parental Income
| Source of authority | Key provision | Relevance to ITR |
|---|---|---|
| 1987 Constitution, Art. XIV §2(2) | State shall “establish scholarship grants… especially to the under‑privileged.” | Empowers agencies to verify need through income documents. |
| National Internal Revenue Code (NIRC), §§ 51, 52, 232, 235 | Requires annual income tax filing and authorizes the BIR to issue certified copies. | Establishes the ITR itself. |
| Data Privacy Act of 2012 (RA 10173) | Personal data must be collected for legitimate purposes and kept secure. | Scholarship bodies must limit ITR use to eligibility checking. |
| Universal Access to Quality Tertiary Education Act (RA 10931) & UniFAST IRR | Grants/free tuition for “economically disadvantaged” students; requires income verification. | Makes ITR or equivalent a statutory requirement for state‑funded aid. |
| Science & Technology Scholarships (RA 7687, RA 10612, RA 8439) | Sets a household income cap (currently ₱300,000, adjustable) for DOST‑SEI grants. | ITR establishes whether the cap is met. |
Private universities and NGOs impose similar rules contractually; although not statutes, they remain enforceable obligations.
3. What Counts as an “ITR” for Scholarship Purposes
| Typical Situation | Acceptable BIR Form | Notes | | — | — | — | | Pure compensation income ≤ ₱250,000 and “substituted filing” allowed | Form 2316 (Cert. of Compensation & Tax Withheld) | Must be signed by both employer & employee and stamped “Received” by the BIR or eFPS‑validated. | | Mixed income, self‑employed, or compensation > ₱250,000 | Form 1700 (pure compensation) or 1701 / 1701A (self‑employed/mixed) | Attach Audited FS if gross sales > ₱3 M. | | Corporation/Partnership supporting the student | Form 1702RT, 1702EX or 1702MX + SEC FS | Parent’s share of income/dividends must still be shown. | | OFW parent | Latest Consularized Contract of Employment and/or Proof of Remittances; ITR generally not required because foreign‑sourced income is non‑taxable. | | Retired, unemployed, or minimum‑wage earners | No ITR filed. See alternatives in § 4. |
Tip: Always submit the latest taxable year (e.g., for AY 2025‑2026 scholarships, use CY 2024 returns filed on or before 15 April 2025).
4. If an ITR Is Not Available
Scholarship guidelines invariably allow substitute proofs where filing is not legally required:
| Substitute Document | Who may use it | How to secure | | — | — | — | | BIR Certificate of Tax Exemption (CTE) | Minimum‑wage earners; persons with purely compensation income subject to final tax; those below filing threshold | Request at RDO with employer’s certification & two IDs. | | BIR Certification “No ITR on File” | Individuals who never registered or filed | Secure via written request to the RDO; processing ≈ 3‑5 working days. | | Notarized Affidavit of No Income / Low Income | Unemployed, informal workers | Must state sources (or absence) of income and spouse’s status; attach Barangay Certificate of Indigency if required. | | Duly Notarized Employer’s Certification of Income | Domestic helpers, family‑run micro‑enterprise workers | Must declare monthly wage, signed over company letterhead or barangay seal. | | DSWD Social Case Study Report (for 4Ps households) | Pantawid Pamilyang Pilipino Program beneficiaries | Request from the municipal Social Welfare and Development Office. |
Scholarship bodies usually list these in their published “Documentary Requirements” or call them “Income Certification / Proof.” Submit only one primary substitute unless the guidelines demand more.
5. Obtaining the ITR or Alternative—Step‑by‑Step
- Gather basic data — TIN, employer’s name, business style, gross income.
- Visit your parent’s Revenue District Office (RDO) with an authorization letter (if the parent cannot appear).
- Request a stamped copy of the filed return or 2316; for e‑filed returns, print the eFPS confirmation page.
- If none on file, apply for a “Certification of Non‑Filing / Tax Exemption.”
- Have copies notarized if the scholarship committee so requires.
- Submit on or before the scholarship’s documentary deadline; late ITRs are rarely entertained unless accompanied by a BIR payment receipt showing penalties were settled.
Processing Time: 1–2 hours if the return is already on file; 3‑7 working days for certifications.
6. Income Thresholds Commonly Applied
| Scholarship Program | Statutory or Policy Cap (latest) | Documentary Tie‑In | | — | — | — | | DOST‑SEI (RA 7687) | ₱300,000 gross annual household income (may waive for large families) | Requires ITR or CTE + Family Size Declaration. | | CHED‑UniFAST Tertiary Education Subsidy (TES) | Prioritizes bottom 40 % based on Listahanan or per‑capita income vs. poverty threshold | ITR validates when a household is not on Listahanan. | | LGU scholarships | Varies; many cities adopt ₱200,000–₱300,000 | Usually accept barangay or BIR certificates. | | Private university “needs‑based” grants | School‑specific, often ₱500,000 | Full ITR with attachments is mandatory. |
Thresholds change through administrative orders; always read the current call‑for‑applications.
7. Privacy & Data‑Protection Duties
Under the Data Privacy Act and NPC Advisories:
- Purpose limitation. Scholarship offices may process the ITR only to confirm eligibility.
- Retention. Keep documents only for the scholarship’s duration plus one audit cycle, unless a longer period is legally mandated.
- Access controls. Scanned ITRs must be stored in encrypted drives; paper copies in locked cabinets.
- Consent & transparency. The application form should cite the ITR as “personal information collected” and include a privacy notice.
Parents have the right to request erasure once documents are no longer necessary.
8. Liability for False or Altered ITRs
| Violation | Possible Penalties | | — | — | | Falsification under the Revised Penal Code (§ 171) | Prisión correccional (6 months–6 years) and/or fine. | | Tax evasion or fraudulent return (NIRC § 254) | Fine ₱30,000–₱100,000 plus imprisonment 2–4 years. | | Scholarship contract breach | Immediate revocation, full refund of benefits, permanent blacklisting. |
Scholarship bodies routinely cross‑check TINs with the BIR; discrepancies trigger an inquiry before any grant is finalized.
9. Frequently Asked Questions
Q1: My parents are overseas Filipinos who no longer pay PH tax. Do I still submit an ITR?
A: Provide the consularized employment contract, proof of remittances, and a Sworn Statement explaining that their income is foreign‑sourced and therefore not taxable under NIRC § 23.
Q2: Both parents are unemployed. Which document is strongest?
A: A BIR Certification of No ITR matched with a Barangay Certificate of Indigency and a Notarized Affidavit of No Income covers all bases.
Q3: We missed the BIR deadline but have now filed with penalties. Is a late ITR acceptable?
A: Yes—submit the stamped return and the BIR payment receipt showing surcharges settled to prove authenticity.
Q4: Our family owns a micro‑sari‑sari that never registered with BIR. What now?
A: Register retroactively or file an Affidavit of Non‑Registration & Non‑Filing, but be prepared for possible BIR assessment. For immediate scholarship purposes, a notarized statement plus barangay certification may suffice.
10. Best Practices Checklist
☑ Use most recent tax year (2024 CY for 2025 intake).
☑ Submit clear, complete copies—all pages, schedules, attachments.
☑ If multiple income sources exist, combine (e.g., ITR + 2316 + 1701).
☑ Notarize affidavits before scanning.
☑ Keep digital backups for re‑submission or appeal.
☑ Respect cut‑off dates; extensions are rare and discretionary.
11. Conclusion
The parental ITR—or an approved substitute—is more than a bureaucratic hurdle: it is the legal linchpin that allows public agencies and private foundations to implement the constitutional mandate of educational access for the under‑privileged. Knowing when an ITR is required, how to secure or replace it, and how privacy law limits its use ensures both compliance and protection of the family’s rights. Follow the documentary rules diligently, and the income‑verification step will be one of the easiest parts of your scholarship journey.
Disclaimer: This article is for general educational purposes and does not constitute legal advice. For specific cases, consult the scholarship issuer’s latest guidelines or a qualified Philippine tax professional.