Updating Tax Status from Single to Married in the Philippines

Disclaimer: The information provided in this article is for general informational and educational purposes only and is not intended as legal advice. Laws and regulations in the Philippines can change over time, and interpretations may vary. For specific guidance regarding your individual situation, consult the Bureau of Internal Revenue (BIR), an attorney, or a certified public accountant.

1. Introduction

In the Philippines, when a taxpayer’s civil status changes from single to married, it is important to update their tax records with the Bureau of Internal Revenue (BIR) and, in some cases, with their employer. This update ensures that the taxpayer’s information remains accurate and compliant with Philippine tax laws and regulations. While the passage of the Tax Reform for Acceleration and Inclusion (TRAIN) Law in 2018 removed many personal and additional exemptions, taxpayers are still required to keep their records (including civil status) updated with the BIR for administrative and legal compliance.

This article covers:

  1. Why You Need to Update Your Tax Status
  2. Relevant Laws and Regulations
  3. Procedures for Updating Your Status
  4. Required Documents
  5. Deadlines and Penalties
  6. Effect of TRAIN Law on Tax Status
  7. Additional Considerations

2. Why You Need to Update Your Tax Status

  1. Accuracy and Compliance: The BIR requires taxpayers to maintain accurate personal information, including changes in civil status.
  2. Legal and Administrative Requirements: Employers also maintain employee records, which must align with official BIR registrations.
  3. Potential Future Benefits: If there are future revisions to tax laws that provide benefits for married taxpayers or those who have dependents, having an accurate record will streamline any claims for deductions or exemptions.
  4. SSS, PhilHealth, and Pag-IBIG: While not strictly tax-related, you will also want to update your marital status for other government records, which often coordinate with tax information.

3. Relevant Laws and Regulations

  1. National Internal Revenue Code (NIRC): The main body of law governing taxation in the Philippines.
  2. TRAIN Law (Republic Act No. 10963): Enacted in 2018, it significantly revised the personal income tax system in the Philippines, including the removal of most personal and additional exemptions.
  3. BIR Regulations and Circulars:
    • BIR Form 1905 (“Application for Registration Information Update”) is the primary form used for updating a taxpayer’s personal information with the BIR.
    • BIR Form 2305 (previously used to update additional exemption status/dependent information) is often referenced, but changes under the TRAIN Law have reduced its usage for claiming exemptions. Nonetheless, it may still be required by some Revenue District Offices (RDOs) or employers for record-keeping.

4. Procedures for Updating Your Status

Below is a general step-by-step guide. Requirements and specific procedures may vary slightly depending on the policies and processes of each Revenue District Office (RDO) and your employer.

  1. Obtain a Marriage Certificate:

    • Secure an official copy of your marriage certificate from the Philippine Statistics Authority (PSA). The BIR will generally require an original or certified true copy as proof of marriage.

  2. Fill Out the Correct BIR Form:

    • BIR Form 1905 is commonly used for changes in civil status.
    • In some cases, your employer may also request BIR Form 2305 to keep employment records updated (though this form is more relevant if you are claiming dependents or additional exemptions, which have largely been removed by the TRAIN Law).

  3. Attach Supporting Documents:

    • Photocopy of your PSA-issued marriage certificate (and bring the original or a certified true copy for verification).
    • Photocopy of any government-issued ID reflecting your new last name (if you have decided to change it). Some RDOs will require identification documents showing the name you intend to use.

  4. Submit Documents to the RDO:

    • Go to the RDO where you are currently registered (this is typically the RDO corresponding to your place of employment or residence).
    • Some people forget to check which RDO they belong to; you can verify your RDO by reviewing your latest BIR forms or asking your employer/HR.

  5. Wait for the Update:

    • Once the BIR officer receives and processes your documents, they will provide a confirmation or acknowledgment that your civil status has been updated in the BIR system.
    • Keep a copy of the submitted forms and any official receipts or acknowledgments for your records.

  6. Coordinate with Your Employer:

    • Provide your employer’s HR or accounting department with updated information to ensure that your employee records and payroll system reflect your correct civil status.

5. Required Documents

  • PSA-issued Marriage Certificate (original or certified true copy and photocopy).
  • Valid Government-issued ID (e.g., passport, driver’s license, UMID) to confirm your identity. If you changed your last name, at least one ID with your new last name is ideal.
  • Duly Accomplished BIR Form 1905 (and possibly Form 2305 depending on your RDO’s or employer’s requirements).
  • Any Additional Documents (if applicable) that your RDO or HR might specifically request.

6. Deadlines and Penalties

  • No Specific Deadline Under the NIRC for updating civil status is stated, but it is advisable to do so as soon as possible after your marriage.
  • Potential Administrative Penalties: While the BIR does not generally impose severe penalties solely for delayed civil status updates, failing to update your records can lead to complications or potential penalties if discrepancies arise in the future.
  • Employer Policies: Many companies have internal policies requiring updates within a certain timeframe (e.g., 30 days from the date of marriage). Failure to comply with these policies might create HR or payroll issues.

7. Effect of the TRAIN Law on Tax Status

Prior to the TRAIN Law (implemented under Republic Act No. 10963), taxpayers could claim:

  • Personal Exemption (PHP 50,000)
  • Additional Exemptions for Dependents (PHP 25,000 per qualified dependent, up to four)

Under the TRAIN Law, personal and additional exemptions for dependents were mostly abolished. Instead, a new set of income tax tables was established, generally lowering income tax rates for many Filipinos. Consequently:

  1. No Additional Exemptions for Marriage: Being “single” or “married” no longer directly changes your taxable income calculations in terms of personal and additional exemptions.
  2. Still Must Update: Even though the immediate tax impact has been reduced, updating your status remains an official requirement.

8. Additional Considerations

  1. Name Change:

    • Changing your surname is a personal choice. If you plan to use your spouse’s last name, remember to update not only the BIR but also other government agencies (e.g., SSS, PhilHealth, Pag-IBIG, LTO, DFA for passport).
    • If you choose to keep your maiden name, you still must update your status to “married” at the BIR.

  2. Local Civil Registry:

    • Although your marriage is automatically registered at the Local Civil Registry where your marriage took place, ensure that your copy of the marriage certificate is forwarded to the Philippine Statistics Authority (PSA) for official national records.

  3. Estate and Inheritance Planning:

    • Updating your civil status is also prudent for estate and inheritance matters; it aligns official records in case of any future property transfers, inheritance, or succession issues.

  4. Overseas Filipinos:

    • If you were married abroad, make sure your marriage is duly registered with the Philippine Embassy or Consulate in the country where you married, and subsequently reported to the PSA. The BIR will usually require a PSA-certified marriage certificate, which can only be obtained once you have registered your foreign marriage in the Philippines.

  5. Keeping Records:

    • Make sure to keep copies of all submitted forms, certifications, IDs, and receipts in a secure place. In case any discrepancies arise, these documents will be your proof of timely and proper submission.

9. Conclusion

Although the TRAIN Law eliminated most personal and additional exemptions, it remains crucial to update your civil status from single to married with the BIR to maintain accurate records and comply with Philippine tax laws and regulations. The process involves completing the appropriate forms (usually BIR Form 1905), submitting the necessary documents (including a PSA-issued marriage certificate), and coordinating with your Revenue District Office and your employer’s HR department. By fulfilling these requirements promptly, you ensure that your official records remain consistent and that you avoid any potential complications or penalties in the future.

If you have any doubts about the specific requirements or deadlines, it is always advisable to consult directly with the BIR or seek professional advice from a tax lawyer or a certified public accountant.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

Privacy Policy

Terms of Use

Lawyer Login

 
 
Privacy Policy         Terms of Use         Lawyer Login