BIR Form 2307: what it is, who needs it and how to fill it out

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BIR Form 2307 is the Certificate of Creditable Tax Withheld at Source. It shows tax that a client, company or withholding agent has deducted from certain payments. The payor is responsible for remitting withheld tax to the Bureau of Internal Revenue (BIR).

If you’re a freelancer, contractor, supplier or self-employed professional in the Philippines, Form 2307 can help support a claim for tax already withheld when you file your income tax return. For a wider overview of filing as a self-employed worker, read Wise’s guide to freelance tax in the Philippines.¹

Put simply, the BIR 2307 meaning is: proof of creditable tax withheld at source.

This guide is for information only and does not constitute tax advice. For guidance, speak to a qualified tax professional or contact the BIR.

What is BIR Form 2307?

BIR Form 2307 is an official withholding tax certificate. It’s used when a payor withholds creditable tax from an income payment, then gives the payee a certificate showing the amount withheld.

For the payee, the form can support tax credits when filing. For the payor, it records tax withheld during the quarter.

The form includes the period covered, payee details, payor details, income payment type, Alphanumeric Tax Code (ATC), monthly payments, quarterly total and tax withheld.

Who needs BIR Form 2307?

BIR Form 2307 is commonly used when income is subject to expanded or creditable withholding tax. It can apply to freelancers, self-employed professionals, suppliers, lessors and other payees, depending on the payment type.

The form doesn’t replace your tax return. It’s a supporting document that may help you claim creditable tax withheld.⁶ If you’re comparing income tax return types, read Wise’s guide to BIR Form 1701 and 1701A.

If you’re a business owner or payor, Form 2307 may be just one part of your wider tax obligations. Check out this separate guide to small business taxes in the Philippines.

How to fill up BIR Form 2307

The withholding agent usually fills out BIR Form 2307. Check you’re using the current official BIR form and the right ATC.

Here’s what to fill in:

1. Period covered by the certificate
2. Payee TIN, registered name, address and ZIP code
3. Payee foreign address, if applicable
4. Payor TIN, registered name, address and ZIP code
5. Income payment type and correct ATC from the form’s schedule
6. Income payment amounts for the 1st, 2nd and 3rd month of the quarter
7. Quarterly total and tax withheld for the quarter
8. Payor declaration, payor signature and payee “conforme” section, where applicable

If you’re the payee and something looks wrong, ask the payor to check the details before you use the form in your tax filing.

If you’re newly self-employed and still sorting out registration, Wise’s BIR Form 1901 guide explains the registration form used by self-employed individuals and sole proprietors.

How to compute withholding tax for BIR Form 2307

The basic formula is:

Income payment subject to withholding × applicable withholding tax rate = tax withheld

For example, if the payment subject to withholding is PHP 20,000 and the applicable rate is 5%, the tax withheld is PHP 1,000.

The correct rate depends on the income type, payee type and ATC. Check the official ATC schedule, BIR rules or a tax professional before filing

When is BIR Form 2307 issued?

The payor should generally furnish BIR Form 2307 within 20 days from the close of the quarter. If the payee requests it, the payor must furnish it at the same time as the income payment.²

In practice, if you’re the payee, it’s worth asking your client or payor for the certificate as soon as the quarter closes. That gives you time to check the details before using it as a tax attachment.

Can you file BIR Form 2307 online?

Yes, BIR Form 2307 can be submitted online in some cases. It’s usually submitted as a soft-copy attachment, not as a standalone tax return.

A rough process may look like this:

1. Get the signed Form 2307 from the payor.
2. Check the payee details, payor details, ATC, income amount and tax withheld.
3. Prepare and file the relevant income tax return through eBIRForms, eFPS or another BIR-approved platform, if applicable.⁵
4. Prepare the Summary Alphalist of Withholding Agents of Income Payments Subjected to Withholding Tax at Source (SAWT), if required.⁶
5. Scan Form 2307 and save the file using the format and naming rules required by BIR.
6. Submit the attachment through the approved BIR mode or facility, such as the electronic Audited Financial Statement (eAFS) System, where applicable.
7. Keep the eAFS Transaction Reference Number (TRN) or Confirmation Receipt as proof of submission.⁴

The exact steps can vary based on your taxpayer type, return type and BIR guidance for that filing period. If you’re unsure, check with the BIR or a qualified tax professional.

BIR Form 2307 vs 2316

BIR Forms 2307 and 2316 both deal with tax withheld, but they cover different income.

If you’re an employee, your employer usually issues BIR Form 2316. If you’re a freelancer, contractor or supplier, you may receive BIR Form 2307 from a client that withheld tax from your payment

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BIR Form 2307 FAQs

What is BIR Form 2307 for?

BIR Form 2307 proves that creditable tax was withheld at source. It can support tax credits when you file.

Can I file BIR Form 2307 online?

Yes, in some cases. Form 2307 can be submitted online as an attachment through approved BIR facilities such as eAFS, where applicable. It isn’t usually filed as a standalone return through eBIRForms.

What is the difference between BIR Form 2316 and 2307?

BIR Form 2307 is for creditable tax withheld from certain payments. BIR Form 2316 is for employee compensation income.

How do I calculate 2307 withholding?

Use this formula: income payment subject to withholding × applicable rate = tax withheld. Check the correct ATC and rate first.

How do I properly fill up BIR Form 2307?

Add the period, payee and payor details, income payment type, ATC, monthly amounts, total, tax withheld and signatures.

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Sources:

1. BIR Form 2307
2. BIR RR No. 11-2018 Digest
3. BIR RMC No. 117-2021
4. BIR RMC No. 20-2026
5. BIR eBIRForms
6. BIR Form 1701Q Guidelines
7. BIR Form 2316