What is BIR Form 2307 used for?
It proves that tax was withheld from income you earned. The payor remits the tax to the BIR; you credit it against your income tax so you are not taxed twice. Freelancers, professionals, contractors, landlords and suppliers to large companies collect 2307s every quarter.
From withholding to tax credit
1Client pays your fee and withholds the tax
E.g. 5% of a ₱50,000 professional fee = ₱2,500 withheld; you receive ₱47,500 (plus VAT if you are VAT-registered).
2Client remits the tax to the BIR
Form 0619-E for the first two months of the quarter; Form 1601-EQ with the quarterly list of payees.
3Client issues your Form 2307
Within 20 days after the quarter ends.
Quarterly
Credit it on your 1701Q
Listed in the summary alphalist of withholding taxes (SAWT) filed with the return.
Annual
Credit the year's 2307s on your 1701 or 1701A
Any excess can be refunded or carried over.
| Form 2307 | Form 2306 | Form 2304 | Form 2316 | |
|---|---|---|---|---|
| What it certifies | Creditable (expanded) tax withheld | Final tax withheld | Income paid but not subject to withholding | Compensation paid and tax withheld |
| Typical payee | Freelancers, suppliers, landlords | Non-residents; payees of passive income | Payees exempt from withholding | Employees |
| Can the payee credit it? | Yes, against income tax | No: the tax is final | No tax withheld | Yes, against income tax on compensation |
| When issued | 20 days after each quarter | Per the form's rules | Per the form's rules | By 31 January |
Sources: RR 2-98 as amended by RR 11-2018; RMC 74-2019 (2306 and 2307, January 2018 versions). See Forms 2306 and 2304 and Form 2316.
Withholding rates you will see on a 2307
| Income payment | Individual payee | Corporate payee |
|---|---|---|
| Professional fees, consultants, talent fees, commissions | 5% (≤ ₱3M with sworn declaration) or 10% | 10% (≤ ₱720,000 with sworn declaration) or 15% |
| Rent of real property used in business | 5% | 5% |
| Contractors (construction, janitorial, security, carriers…) | 2% | 2% |
| Top withholding agents: goods / services | 1% / 2% (½% on vehicles, medicines and fuels bought wholesale from the manufacturer or importer, RR 24-2025) | Same |
| Credit card and e-marketplace remittances (from RR 5-2025) | 0.5% of gross (e-marketplace: none while the seller's remittances stay at ₱500,000 or less) | Same |
Source: RR 2-98 Sec. 2.57.2 as amended by RR 11-2018 and RR 5-2025. Full table with conditions: expanded withholding tax rates. As of November 2026.
Common creditable withholding rates (individual payees)
| Item | Rate |
|---|---|
| Professional fees, higher bracket | 10% |
| Professional fees, with declaration ≤ ₱3M | 5% |
| Rent of real property | 5% |
| Contractors | 2% |
| Services bought by top withholding agents | 2% |
| Goods bought by top withholding agents | 1% |
| E-marketplace remittances | 0.5% |
How to fill up Form 2307, box by box
| Item | Label | What to write | Example | Common mistake |
|---|---|---|---|---|
| 1 | For the Period | First and last day of the quarter | 01/01/2027 to 03/31/2027 | Writing one month only |
| 2–5 | Part I – Payee: TIN, name, registered address, ZIP, foreign address | The payee's details as on their certificate of registration | 123-456-789-00000 | Wrong branch code |
| 6–8A | Part II – Payor: TIN, name, registered address, ZIP | The withholding agent's details | Client Corp., Makati City | Missing payor TIN |
| Part III | Income Payments Subject to Expanded Withholding Tax | Description, ATC, amount for the 1st, 2nd and 3rd month, total, tax withheld for the quarter | Professional fee · ₱50,000 × 3 · ₱7,500.00 | Amounts including VAT |
| Part III | Money Payments Subject to Withholding of Business Tax | Only for government or private payors withholding percentage tax or VAT | Usually blank | Mixing business tax with income tax rows |
| Signatures | Payor (with title and TIN) and payee 'CONFORME' | Both sign; tax agent accreditation number if a tax agent signs | Signature over printed name | Unsigned by the payee |
Labels from the official BIR Form 2307, January 2018 (ENCS), circularized by RMC 74-2019. Its page-2 ATC schedule gives the codes (e.g. WI010 / WI011 for an individual professional's lower / higher rate); later changes: credit card WI156 now ½% and e-marketplace WI820 (RMO 18-2025), RR 24-2025 wholesale purchases WI840 to WI860 (RMO 46-2025). All codes: expanded withholding tax rates.
One certificate covers one quarter: Part III has columns for the first, second and third month only. A freelancer who works for the same client all year should therefore receive four 2307s, and should check each one against their own invoices before signing the conforme line.
Worked example: a freelancer's quarter
- 1
₱50,000 professional fee each month, net of VAT
The freelancer gave the client a sworn declaration of gross receipts under ₱3,000,000.
- 2
5% withheld each month: ₱2,500.00
The client pays ₱47,500 a month.
- 3
Quarter: ₱150,000.00 income, ₱7,500.00 withheld
Shown on the 2307 issued by 20 April.
Tax credit for the quarter
₱7,500.00
Without the sworn declaration the client would withhold 10%: ₱15,000.00. The credit is applied on the 1701Q; any excess at year-end can be refunded or carried over.
Sworn declaration of gross receipts: 5% instead of 10%
The lower rate is not automatic. The payee must give each payor a sworn declaration with a copy of the certificate of registration by 15 January, or before the first payment of the year. Without it, the payor must withhold at the higher rate, and the higher rate applies anyway once actual receipts pass the threshold.
| Payee | Declaration | Rate if declared and under the threshold | Otherwise |
|---|---|---|---|
| Individual with several payors | Annex B-1, gross receipts ≤ ₱3,000,000 | 5% | 10% |
| Individual with a single payor | Annex B-2 (lone-payor rule) | No withholding while the year's payments stay under ₱250,000; withholding on the excess after that | Withholding even at ₱250,000 or below |
| Corporation or partnership | Annex B-3, notarized, gross income ≤ ₱720,000 | 10% | 15% |
Source: RR 2-98 Sec. 2.57.2(A) as amended by RR 11-2018 Sec. 2. The payor files its own declaration and list of payees (Annex C) by 31 January. The official Form 2307 code list labels the 10% code 'more than ₱3M or VAT Registered regardless of amount', a condition not in RR 11-2018's text; if you are VAT-registered with receipts under ₱3M, agree the rate with your client or ask your RDO.
Deadlines for withholding agents and payees
| What | Form | Deadline | Who |
|---|---|---|---|
| Payee's sworn declaration of gross receipts | Annex B-1 / B-2 / B-3 | 15 January, or before the first payment | Payee |
| Monthly remittance (months 1 and 2) | 0619-E | 10th of the following month, even if zero (eFPS: 11th–15th by group) | Payor |
| Quarterly return with list of payees | 1601-EQ | Last day of the month after the quarter | Payor |
| Certificate to the payee | 2307 | 20 days after the quarter | Payor |
| Annual information return and alphalist | 1604-E | 1 March | Payor |
Source: RR 2-98 Sec. 2.58 as amended by RR 11-2018. Weekend and holiday adjustments: 2027 tax calendar.
Common mistakes and consequences
| Mistake | Consequence | How to avoid it |
|---|---|---|
| No sworn declaration given to the client | 10% withheld instead of 5% | Send Annex B-1 with your COR by 15 January or before the first payment |
| Withholding on the VAT-inclusive amount | Over-withholding | Withhold on the amount net of VAT |
| Payee never collects the 2307s | Credit hard to support at audit | Ask for each 2307 within 20 days after the quarter |
| Wrong ATC or rate | Payor's quarterly list does not reconcile | Confirm the code and rate before issuing |
| Crediting a 2306 like a 2307 | Disallowed credit | Only creditable tax (2307) reduces your income tax |
Buod sa Tagalog
Ang BIR Form 2307 ay sertipiko na ibinibigay ng kliyente (payor) sa iyo (payee) kapag kinaltasan ka niya ng buwis. Dapat itong ibigay sa loob ng 20 araw pagkatapos ng bawat quarter. Sa professional fee, 5% ang kaltas kung nagbigay ka ng sworn declaration at hindi lalampas sa ₱3,000,000 ang kita mo; 10% kung hindi. Ibinabawas mo ang halagang ito sa income tax mo sa 1701Q at sa taunang return.
Frequently asked questions
+What is BIR Form 2307 used for?
It certifies the creditable (expanded) withholding tax a payor deducted from your income, such as professional fees, rent or supplier payments. You use it as proof to credit that tax against the income tax on your quarterly and annual returns, so the amount already withheld is not paid twice.
+Who issues BIR Form 2307: the client or the freelancer?
The client, who is the withholding agent. It deducts the tax from your fee, remits it to the BIR and gives you the 2307. You, the payee, sign the 'conforme' line and keep the certificate for your returns.
+When should BIR Form 2307 be issued?
Within 20 days after the end of each calendar quarter, so by 20 April, 20 July, 20 October and 20 January, under RR 2-98 Sec. 2.58(B) as amended by RR 11-2018. If you ask, the payor must issue it together with the payment.
+Is the withholding tax on professionals 5% or 10%?
5% for an individual who submits a sworn declaration that gross receipts for the year will not exceed ₱3,000,000; 10% if they exceed it or no declaration was submitted. Corporate payees: 10% up to ₱720,000 with a declaration, otherwise 15%.
+How do I use Form 2307 in my 1701Q?
Add up the tax withheld on the 2307s for the quarter and claim it as a credit on the quarterly income tax return, listing each certificate in the summary alphalist of withholding taxes filed with the return. On the annual return, the year's credits reduce the tax due; any excess can be refunded or carried over.
+Is Form 2307 still needed if I chose the 8% rate?
Yes. Clients still withhold on your fees, and the tax they withhold is creditable against your income tax whichever rate you chose, including the 8% option. Keep every 2307 to claim the credit on your quarterly and annual returns.
+My client did not give me a 2307. Can I still claim the tax?
You need the certificate to support the credit, so ask the client in writing; issuing it is the payor's legal obligation under RR 2-98 Sec. 2.58(B). If the client refuses, report it to the BIR. Without a 2307, the BIR may disallow the credit at audit.
+Can Form 2307 be signed electronically?
Yes. RMC 29-2021 allows withholding agents to use e-signatures on Forms 2307, 2306, 2304 and 2316 without prior BIR approval. The payee's signature, manual or electronic, is still required for the certificate to be complete.
+Do I submit Form 2307 to the BIR?
The payor reports your payments in its quarterly and annual lists; you list the certificates in the summary alphalist of withholding taxes filed with your return and keep the originals for audit. Keep them for at least the period the BIR can assess, which the books of accounts rules set at five years.
+What is the difference between Form 2307 and 2306?
Form 2307 covers creditable withholding tax, which you deduct from your income tax. Form 2306 covers final withholding tax, which settles the tax on that income completely, such as tax on certain passive income, so it cannot be credited.
Sources and references
- BIR Form 2307 (January 2018 ENCS) — official form (checked November 12, 2026)
- RMC 74-2019 — enhanced Forms 2306 and 2307, January 2018 versions (checked November 12, 2026)
- RR 11-2018 — amended Secs. 2.57.2 rates and 2.58 deadlines; sworn declarations (checked November 12, 2026)
- RR 5-2025 — 0.5% on credit card and e-marketplace remittances (checked November 12, 2026)
- RMC 29-2021 — e-signatures on BIR certificates (checked November 12, 2026)
- RR 6-2026 — creditable withholding tax shown as a separate item on invoices (checked November 12, 2026)
- RA 11976 amending NIRC Sec. 58 — withholding arises when income becomes payable (checked November 12, 2026)
Related tools and guides
Author and editorial review
Deepak Middha, Chartered Accountant
Chartered Accountant with 18 years in hedge funds; writes and maintains sulat.ph. Every rate, ceiling, deadline and fee on this page is taken from the National Internal Revenue Code or a BIR issuance and was checked against that source on November 12, 2026. Where a figure could not be confirmed officially, the page says so.
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