One of the most important forms that employees doing freelance jobs on the side, employers who accept project-based or freelance employees and freelancers must know about is the BIR Form 2307. It is something you must file together with your Quarterly/Annual Income Tax Return – BIR Forms 1701Q / 1701 for individuals, or BIR Form 1702Q/ 1702 for non-individuals – for income tax liability. Read on to learn more about it.

Want to learn more about other BIR forms? Check out our Ultimate Guide to BIR Forms post.

BIR Form 2307

What is BIR Form 2307?

The BIR Form 2037 is also called the Certificate of Creditable Tax Withheld At Source.

This certificate shows the income subjected to expanded withholding tax paid by the withholding agent.

BIR Form 2307 in the books of accounts of the taxpayer is accounted for as an asset. They are considered as income tax prepayments – being deductible from income tax due of the taxpayer during a quarterly or annual income tax return.

They function as income tax credits or what you can consider advance income tax of the payee.

This is what the BIR Form 2307 looks like:

BIR Form 2307 - Full Suite
What Is It for and Who Needs to File It?

Issuance of BIR Form 2307 is an obligation of the payor and/or employer – withholding tax agent to the payee.

It should be submitted together with the Quarterly/Annual Income Tax Return – BIR Forms 1701Q / 1701 for individuals, or BIR Form 1702Q/ 1702 for non-individuals – so that the amount of withholding tax shall be allowed as a tax credit against the income tax liability of the income recipient in the taxable quarter or year in which the income was earned or received.

 

When Is the BIR Form 2307 Issued?

The certificate is attached to the following with different deadlines:

•  For EWT: to be filed on or before the 20th day of the month following the taxable quarter, the form must be attached to 1701 or 1702 forms, in which case the amount is allowed to become tax credit against taxable income.

•  For percentage taxes on government money payments: certificate must be attached to 2551 forms and must be issued on or before the 10th day of the following month.

•  For VAT Withholding: certificate must be issued on or before the tenth day of the month following the month when withholding was made. To be attached to 2550 forms.

 

Request for a Quotation

 

59 Comments

  • Mike says:

    We have a peculiar issuance of BIR 2307 this month. A furniture company with an acronym of PFI, INC. (a Corporation) requested us to pay our purchases in the name of their owner not in the corporate name. However we should use the TIN of the company and its address in the issuance of the form. OR will be issued by PFI,INC. to our Company. Is there any irregularity with this transaction specially the BIR Form 2307?

    • Zachry says:

      Regardless which name you printed on the check it will still represent as payment to the company, as long as you get the proper official receipt and have the 2307 signed by authorized person on their company, that must be okay on your side. Whatever is the reason of the peculiarity must be internal on their company. Should their be mismatch during the tax mapping on this transaction, it has to be their liability.

  • Ryan says:

    We also have a peculiar case of issuance of BIR 2307. I am teaching in a certain university, and yet when I verify my TIN number in BIR, there is no tax history (not even a cent reflected in TIN in my years of teaching in this university). Am I consider a freelancer if I am an instructor in a certain university?

    • fullsuite_poaanq says:

      I am not sure about this, but do you happen to have a BIR COR? That’s form 0605? Or are you considered an employee (that your taxes are withheld from you automatically)?

      Former means you are a legal entity by yourself and must remit your own, latter means you’re an employee and need not worry about that.

      However, if latter, you should have been receiving stamped copies of 2316 every january as proof that your employer has been filing your taxes.

  • Dexter says:

    What if with holding agent do not want to give 2307 to the payee? what can the payee do?

    • fullsuite_poaanq says:

      Did they withhold certain amounts from you? If not, you need not worry. If yes, you can demand that from them because at the end of the day, if you do not have 2307, you will nt be able to deduct that from your income tax. That means you paid the tax twice.

      A nicely written demand letter should suffice. Tell them the options that if they dont give the 2307, they shouldnt withhold any amount.

      Please note that this isn’t legal advice.

  • Jhomar says:

    I have a friend, a homebased account. they are contractor as their boss tell them. They have a witholding tax, is this for form 2307?

  • joseph says:

    Sir/Mam here’s my scenario.

    i have several forms 2307 with the total amount of 40k+ (14 copies with diff amount of withheld tax at source issued last 2016) and then after filling my ITR i only have an amount due of 25k. said 25k will due on april since this is last filling date for quarterly income tax and for annual income tax. i know 25k will be deducted once ive filed my qit on april.
    my question is, what will happen to the 15k+ remaining amount?

    • fullsuite_poaanq says:

      Two options: either file for refund or keep it as a balance. I suggest the latter since it takes a LONG time to get a refund.

      • joseph says:

        keep it as a balance, meaning i can use it on the quarter 2 once i’ll my qit? one of the staff at bir told me that all form 2307 issued last 2016 will be accepted only up to the 1st quarter of 2017 once we file our qit.

        correction: “AND THEN AFTER FILLING MY “ITR” I ONLY HAVE AN AMOUNT DUE OF 25K.” this is qit not itr.

  • Viola says:

    Is the BIR Form 2307 confidential? I am filing for child support and my husband is moonlightning from different hospitals. Unfortunately he only declares 1 hospital to the court as his employee to claim that he is not earning that much. I am hoping to see his form 2307 from other hospitals that he is working with. And if it is not confidential, can I make a copy of it?

  • Sal Batica says:

    SAL

    Feb 22, 2017

    We were not able to submit the 2307 for the Withholding Taxes on the rent we paid on time for the space we occupy in a mall pertaining to the last quarter of 2016. Last week, we tried to submit that 2307, but the mall Accounting Staff did not accept it, citing its late submission. On top of that, the Accounting Staff is requiring us to pay the Withholding Taxes for the last quarter of 2016, amounting to P6,300 computed as follows: Monthly Rental Fee = P42,000 x 5% = P2,100 x 3 mos. = P6,300. We admit that we were not able to submit the 2307 on time and are willing to pay any Late Submission Penalty, but we believe that we should not be charged for the amount of Withholding Taxes because the mall can still use the 2307 as Creditable Withholding Taxes in the computation of the Mall’s 2016 Annual Income Tax. Please advise and kindly furnish us a ruling from the Tax Code regarding this situation which we can present to the Mall Management. Thanks!

  • jesmell says:

    Hi , I would like to ask if the CWT certificate needs to be original ? We always receive scanned copies of certificates , especially coming from customers from far-flung places . Please educate me on this.

    Thanks!

  • Ann says:

    Hi. Do i need to issue an official receipt for every 2307 i obtain? I received my salary thru cashcard or atm account for the past 3 months and now obtaining my 2307 for annual filing.

  • Ivan says:

    I’m working in the government and I’m in the procurement division of our institution. We purchase fuel from a certain company. We paid it with a check attached with the BIR 2307 document. Our Purchase Order amount is 10,000, and the check was deducted with tax so amount is lesser than PhP 10,000, it’s about PhP 9,450 or so. Now, the issue is the fuel store only give us fuel worth of PhP 9,450 (the check amount) because they said it is their actual sales. Is the fuel store right of their policy? It seems they are already benefited with the 2307 document which will be used for tax deduction at the same time deducting our purchase amount. Where can we ask for clarification for this issue? Please help.

    • fullsuite_poaanq says:

      The amount of fuel should be 10,000. Provided that you issued the corresponding 2307 with it. Meaning, check + withheld amount (2307) = 10,000.

      • Skye says:

        Hi. I am new in tax filing. Regarding Sales to Government, if we were given 2307 by our client with ATC WI 640, in 2550M, can I put the tax withheld amount on 20B Input Tax on Sale to Govt closed to expense? I was under the impression that ATC with WI can only be used for 1701/1702. Thank you for your clarification in advance.

        • Ariel Lim says:

          Hi Skye, 2307 can only be used in your ITR (either the 1701/1702). Upon checking the article, I saw the cause of confusion. I apologize for this. The VAT withholding uses the form 2306.

  • Bon says:

    I just received my BIR Form No. 2307 from my employer. This is my first work and first time to receive this kind of document. My question is, do I still need to go to BIR to file my income tax returns with this document?

    • fullsuite_poaanq says:

      Yes. Since you received a 2306, i am assuming you are working as a separate entity (freelancer) and not as an employee.

      That said, are you registered with the BIR? Meaning, do you have a 2303 (aka BIR Certificate of Registration)? Because that is the only way you can use the 2307 as a tax deductible when you file for your ITR.

  • Jenny Monreal says:

    We are renting in a certain business establishment (mall] and they are asking us to pay them certain amount for the 2307 we dont know what is it for since we are new in business… we pay the monthly witholding tax and the percentage tax.. we are just wondering why do we need to pay that establishment for that… we need guidance for this thank you

    • Jenny Monreal says:

      I mean we pay the monthly witholding tax (1601-E) and the percentage tax (2551M)… my question is why do we need to pay the mall we are renting the 2307 thank you so much

    • fullsuite_poaanq says:

      Withholding tax is a tax that you pay in advance on behalf of someone else. Think of you withholding salary for employees, you pay their taxes for them.

      In your case, you pay rent. By law, it is required to withhold a percentage. You then pay that next month (on the 10th), then issue a 2307 to your lessor.

      For example, rent amount is 10k VATex. For the rental on April, You pay your lessor 9,500 in cash and may attach a 2307 amounting to 500. (Then add the 12% VaT ) You should still get a full 10k receipt from the lessor.
      On May 10th, you pay 1601-E to the BIR.

      *i said may include a 2307 because some companies issue that quarterly. But that would depend on you.

      On the side of the lessor, they can use that 2307 to offset the amount of income tax they have to pay.

  • Ian Carlo Siga says:

    I have my TIN #.. But I don’t know if I am registered at my RDO.. I will be filling my 1701, do I need to register at RDO before filling? Also, can I submit online? Thanks.

    • fullsuite_poaanq says:

      Best to call the BIR hotline to find out. You should check for what you mentioned, which RDO you are registered.

      And also check if you are registered as a self-employed or mixed income earner.

  • KOALABEAR says:

    I have my form 2316 (Jan to June) and Form 2307 (July to Dec). Do I need to compute both for filing in the Form 1701?
    Thank you!

  • Miguel says:

    I’m a licensed non-life insurance agent and earn commissions. I was registered as Non-vat and have missed several payments already as I was told that I needed to file for it monthly and pay. How do I go about it?

  • OLIVA says:

    HI, THIS IS THE FIRST TIME I RECEIVED A 2307 FROM MY EMPLOYER, DO I REALLY NEED TO FILE THIS TO BIR? BUT I DONT HAVE A 2303?

    • fullsuite_poaanq says:

      Then you can’t file / use it.

      • Roms says:

        Hi

        Is there no need then to file individual ITR then with the absence of COR?
        Does this mean this is somewhat evading tax in the practice of profession?
        Are they, in a way, be liable to future tax liability because of non registration?
        I know a lot of practicing professionals not registering with BIR, thus no COR.

        • fullsuite_poaanq says:

          And that is what we’re trying to educate the public. According to our tax code, any source of income should be taxable.

          If you are not registered, your “freelance” activities aren’t and cannot be taxed.

          Therefore, you are breaking the law.

          Since the BIR system is slow and have a huge backlog, these people get away. But when the time comes this will definitely be seen.

          Also, more and more companies are not dealing with “freelancers” anymore if they can’t provide real receipts – real meaning those registered with the BIR, not the ones you can print out.

  • vicky gonzales says:

    Hi, I am a CPA. duly registered wth BIR. I have question with the use of 2307. Can I also use it to pay my monthly percentage return 2551m? i am using optional standard deductions and it always end up having excess tax credits due to my 2307. sayang naman.. ngbbayad ako ng percentage tax tpos i have excess tax credits sa qtrly n annual itr ko…

    • fullsuite_poaanq says:

      Unfortunately, no. You can only use it for your income tax – quarterly and annual.

      Just make sure you carry them over. Otherwise, it might be disallowed by the BIR next time.

  • Bets says:

    I am filing BIR Form 1702Q for the first quarter. I have 2307s which are dated for the 2nd quarter, can I declare them for the 1st quarter?

    • fullsuite_poaanq says:

      If that’s the case, then no. hold out a few more months 🙂

      • EM says:

        HI, WHAT IF ON THE REVERSE SIDE? I MEAN, I AM FILING FOR THE 1702Q 2ND QUARTER BUT I STILL HAVE UNUSED 2307 FROM THE FIRST QUARTER BECAUSE THE PAYOR WAS NOT ABLE TO SUBMIT IT PRIOR TO MY 1702Q FILING FOR THE 1ST QUARTER? CAN I STILL USE THE UNUSED 2307 FROM 1ST QUARTER FOR FILING 1702Q 2ND QUARTER? THANK YOU SO MUCH.

  • Karen says:

    Hi Sir/Maam. I am new to this Compliance with the BIR. What are the submittals or necessary attachments to be submitted in filing 1702Q? Should it be entered in the Relief System? Thank you.

  • saffi says:

    Hi Sir/Ma’am, please enlighten me as to what date should be reflected in tax form. For example, I paid my insurance expense in June 2017 and the withholding tax is posted in our acctg system in May 2017. Is this possible or is this a violation of tax law? Please guide me as to what correct date should I use in my tax form. Thank you

    • fullsuite_poaanq says:

      Hi Saffi, it’s best to consult with an accountant.

      Also, what you said doesn’t have enough context to elicit a proper response.

  • IVAN says:

    Hi Sir/ Madam:

    I just want to ask what’s the best and right option for us.
    The company I’ve been working is a foreign branch. I just noticed to their computation of creditable withholding tax – compensation that they declare on their 1601 C, the tax of the higher bosses (their compensation was paid by the foreign home office in other country) aside from that, there’s a resident alien that worked here as a contracting employee as he received a professional fee. Is this resident aliens subject for 1601 E? And how about the proper declaration of 1601 C?

  • Roms says:

    Hi

    I received a full rental payment covering April 2017 to April 2018, with the 2307 based also on the whole amount. Shall I report also the full amount as sales this 2nd quarter of 2017 1702Q and my annual 2017 ITR? Can I amortize the rent income- that is declare only the income earned for the quarter. How will this affect my 2307 Certificate? Thanks

  • edwin says:

    My company just issued me 2307 but the bank in which i am making a loan needs 2316 . Wjat can i do.

    • fullsuite_poaanq says:

      Thanks edwin, but you have to be more specific than that.

      So your end goal is a bank loan, right? And they need a 2316.

      And you were given a 2307 by your company. Correct?

      So the question is why were you given a 2307? Arent you employed directly by the company? Cz if the company issues you a 2307, that means you are a considered a supplier (contractor, etc). 2307 is used as income tax deductible on your end. It’s proof that the company already remitted that tax.

      That said, if you are an individual contractor and not an employee, the bank will be looking for income tax returns (1701) if im not mistaken.

      If you are employed under normal conditions, i dont see any reason why the company would give you a 2307.

      Then goes the question of how long have you been with the company? The company is only obliged to give you a 2316 on two occasions: on or before january 30; and on the last day of payment (e.g backpay when you leave). That’s it.

      And to clarify: 2316 is for the year 2016 unless you just left.

      So if you’re just new to the company, e.g. Entered feb for example, your 2316 should be coming from your previous employer.

    • fullsuite_poaanq says:

      Please check our other article on 2316 FAQs

  • Oscar says:

    Hi. I’m so happy that this discussion is still active. My question is to the issuance of 2307 by companies. I understand that for companies that has employee-employer relationship, the issuance of 2307 and ITR is mandatory to their employees.

    The question is, does it also apply to companies that has “independent contractors”, or in other words “partners”.

    Case in point, several networking companies withhold from the commissions they give to their agents, and they are willing to issue 2307 to those who ask for it.

    But most of the time, they don’t issue because the agent didn’t ask for one (maybe because the sales agent is new and not familiar of the benefits of a 2307, or just dont want to be hassled by it.)

    Are they violating any law in particular? Thanks

    • fullsuite_poaanq says:

      I’m not sure as I’m not a lawyer nor an accountant.

      Before i start, the employee-employer relationship deals primarily with 2316 that serves as the ITR of the employee. Not 2307.

      2307 is certificate of creditable withholding tax.

      Withholding tax usually applies to suppliers of the business,i.e. Rent, freelancers, etc.

      In your case, are they violating any law, im not sure.

      Look at the concept of WHT first. The purpose of that is to advance a portion of the tax to the government in behalf of the 2rd party. That means the company is remitting that tax for the supplier. This is reported in the 1601-E of the company.

      That 2307 is just a “proof” of that remittance. This is used primarily by the 2nd party (suppliers) as income tax deductible. It’s like the concept of the input vat but applied to the income tax.

      So if the company is remitting but not issuing a 2307, i dnt think it is violating anything law related. It’s just not being a good partner in that relationship because it’s not educating the supplier.

      Hope this helps.

      • Oscar says:

        Thanks for pointing out the difference of 2306 and 2307. That’s really helpful. The explanation though would beg this question–

        If my company isn’t issuing 2307 to me, would it be suffice to say that the company is not remitting the tax that they withheld from me. If yes, then would it qualify as tax evasion, or some sort of legal trouble?

        They withhold , and they don’t show proof. So that must mean they didn’t remit

        Thanks for

        • fullsuite_poaanq says:

          That’s sort of a grey area. If they are withholding, but they aren’t remitting then yes, that is a violation.

          But if they are remitting but not issuing a 2307, then it’s only you who is on the losing end.

          Yes they’re not proactive nor helping you. But I don’t think they are necessarily evading.

          Hope this helps!

  • mau says:

    Hi sir, may i just ask since im reading/researching into my problem, and im still not satisfied.

    i am a physician, and i worked as a resident in a government institution before, so my tax wasnt a problem. however, once your temporary plantilla is done (its 3 years for me), you will graduate as a specialist and long story short, you will be on your own. they have given me already my ITR for 2016, and i also have a TIN ID with me already. after i passed my diplomate exams, i had moonlighting jobs on several institutions, most of which did not give me form 2307 (but they deducted me 10, even 15% withholding tax). i did not know then that i can give them demand letters for this. i havent also filed my ITR for this year.

    my problem is this one sir, i plan to register/change my RDO (i already transferred once, from my RDO of my govt institution before to the RDO of my supposed employer as a company physician–but it did not push thru), to my hometown and get receipts since ill be starting a clinic. my question is this, when should i file my ITR and should i only include the 2307s with me? i am willing to pay for any penalties, i just want to make sure that i am doing the right thing since this tax thing is really confusing. thank you in advance, and hoping that i could hear from you soon sir. thanks 🙂

    • fullsuite_poaanq says:

      Thanks for reaching out. And yes, this tax thing is really confusing.

      Quick assumptions:
      – you’re a doctor so you’re working as a professional / individual, not a company.
      – you have a TIN. but im not sure what type of taxpayer you are. We have an aricle in that coming out monday. But find out what that is first. Call BIR hotline.

      Quick answers:
      – filing of ITR is done quarterly and annually. So Q1 ends in March, deadline is April 15 (45 days after close of quarter). Q2 ends in Jun, deadline is Aug 15), etc. Q4 is due april 15 too, but instead of the quarter, you summarize q1-q3, then add in q4, you get the annual.
      – re 2307, if they deducted, you can try asking for it. Nicely. However, you can only use it if you were registered before. I mean, if you’re not, you cant file tax returns/wont even have commercially approved receipts.
      – re transfer of RDO and starting your own clinic, a couple of things here. You need to know your taxpayer type (professional, purely compensation, mixed income, etc). So you’ll know the next steps.

      Generally, what you do is use 1905, go to current RDO and request for transfer. Takes 1-2 weeks if no issues. Once transferred, go to new RDO and apply for change of taxpayer type (if needed). You should be registered as professional or mixed income. Proof of that is when you have BIR Certificate of Registration and receipts approved by BIR.

      From there, pay taxes and file returns monthly, quarterly, annually. Hth

      We do offer this as a service in case you don’t want to deal with all these. Just let me know!

  • karen m. says:

    i am a sole prop.non vat and recently last July government bought some of my stocks(ex.P10,000), i issued OR and after whicht the government issue form 2306 no form 2307. when i asked they told me this is enough, my question is hoe do i file my 2551? do I add the P10,000 to my other sales (ex.P50,000) making my 2551m P60,000×3%? if not how? also, how this sale will affect my 1701Q? thanks in advance, hopefully i get a reply before the august deadline for 2551m for july.

    • To answer your concerns, if the 2306 that was given to you by the government agency indicated specifically “ATC WB084”, then it can be used for your 2551M that is due this August 20th. But if it’s not indicated, then the 2306 that was given to you can be used for the filing of 1701Q – Quarterly Income Tax Return.

      Regarding your sale, yes since it was part of your July sales.

      We hope we’ve answered your concerns.

      • karen m. says:

        hi,

        thank you so much for great help.

        yes it specifically say atc 3%, i used 2306 to my 2551m, i itemized the details in 2551m

        my question is, in my 1701Q 3rd quarter, it will appear like my sales is big for ex. sales from govt P100,000 sales non-government P80,00, my question is will i be paying income tax on the P100,000 on my gov’t sales or just P80,000? my income bracket will go higher thus higher income tax. my understanding of form 2306 is that its final tax meaning no need to put in 1701Q/1701 is this correct?

        thanky you for your patience. you are helping many small sole proprietors.
        God Bless.

  • Abril patag says:

    good day… question lang po… bago lang po ang business ko (february 2017) sa government agency po ako nakikipag transact (food services) since percentage tax kami, the government agency issued 2306 and 2307.. every time na nag fi file ako ng 2551m ang nagagamit ko na creditable tax ay 2307 na dapat pala 2306 (ATC WB084).. so at the end of every month nag babayad pa ko ng percentage tax na dapat pala wala na dahil na bawas na skin… sayang nman un mga nabayad ko since February 2017 ..

    since i use eBIR, pag bayad ko ba sa bank ng tax kailangan ko pa mag pa receive sa BIR ?

  • Luz Villanueva says:

    Good morning, what is the ruling of BIR on this (we are withholding agent) , may purchases kmi dated november 2018
    pero and check namin PDC dated december 2018, gagamitin namin and purchases ng november din, so kylan ang date
    ng BIR Form 2307 ko , is it base on payment date? or kung kylan namin ginamit ang purchases? thank you so much..
    Anyone who can help me??

    • Full Suite Team says:

      Hi Luz!
      As per BIR regulation, withholding has to happen upon payment or incurrence of the expense- whichever comes first. Based on the information you have provided, you should be withholding and remitting the tax for the period of November 2018 due on the 10th of the month (if filing via ebirform) or up to 15th of the month (if filing through efps, depending on your company’s classification).

      Hope that helps!

  • Justin Tan says:

    Hi! Hope you can help. I am the withholding agent and the 2nd party would like me to submit 2307 to them on a monthly basis. But as per TRAIN Law, our company opted for the 8% Business Tax, meaning I remit the withheld tax on a quarterly basis. Question would be, can I submit the 2307 to payee on a monthly basis even if I remit on a quarterly mode? Thank you in advance for shedding some light on this.

    • Full Suite Team says:

      Hi Justin!

      The amount you withheld from your suppliers is not the same tax as the 8% percentage tax that is due for remittance every quarter. These are two different taxes. Your 8% percentage tax is based on your sales from your customer and has nothing to do with the tax you withheld from your suppliers. The tax you withhold from your suppliers is called expanded withholding tax and this is due to be remitted to BIR every 10th of the following month. You are also required by BIR to issue 2307 to your suppliers every month as a proof that you have withheld taxes from your payments to them.

      Hope that clarifies.

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