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3 min read

A Guide to BIR Form 2307 in the Philippines: How to Fill It Out

A Guide to BIR Form 2307 in the Philippines

The BIR Form 2307 is a certificate for creditable tax withheld at source in the Philippines, used to claim income tax credits.

Are you a business owner in the Philippines wondering about BIR Form 2307? In this post, we’ll provide a guide to it and cover the essential information you need to know about filling it out.

What is BIR Form 2307?

BIR Form 2307, also known as the Certificate of Credible Tax Withheld at Source, presents the income of an individual or business entity subject to Expanded Withholding Tax (EWT) paid by the withholding agent. 

The form lies under assets in the accounting books. It is considered an income tax prepayment since the deductions are from the taxpayer’s income tax dues (quarterly and annual income tax returns). It is essential to taxpayers as it provides credible proof of their withholding tax. Taxpayers cannot claim tax credit without the Certificate of Credible Tax Withheld at Source or BIR Form 2307.

BIR form 2307

Who needs to file BIR Form 2307?

Most of the time, self-employed freelancers or part-time freelancers are the people who need to file the form. However, even a business owner could be an issuer or recipient of this form. Some employers hire project-based employees who must fill the BIR Form 2307, which must be submitted along with the quarterly and annual Income Tax Return or the BIR Form 1701 for employees and BIR Form 1702 for companies and corporations. After filing the form, the amount of withholding tax will be accepted as a tax credit on the quarter or year it was earned.

How to fill out BIR Form 2307

To fill out BIR Form 2307, follow these steps:

Obtain a copy of the form

You can obtain a copy of BIR Form 2307 from the Bureau of Internal Revenue (BIR) website or a BIR office.

Fill out the required information.

Enter the required information in the appropriate fields of the form, including:

  • Payee’s name and TIN
  • Payor’s name and TIN
  • The total amount paid to the payee
  • The total amount of tax withheld

Attach supporting documents

Attach the necessary supporting documents to the form, including:

  • Official receipts or invoices
  • Certificate of withholding tax
  • Other relevant documents

Submit the form

Submit the completed BIR Form 2307 and the required supporting documents to the BIR.

Deadlines for filing BIR Form 2307

BIR Form 2307 must be filed on or before the following deadlines:

  • Income Tax Returns: The quarterly income tax returns should be filed on or before May 15, August, and November. The annual income tax return deadline is on or before April 15.
  • Expanded Withholding Tax (EWT): This should be issued on or before the 20th day of the month following the end of the quarter. It should be provided with the income payment upon the taxpayer’s request. The BIR Form 1702q needs to be filed on or before the 60th day following the closing of the three quarters of the taxable year and on or before the 15th day of April following the closing of the taxpayer’s taxable year.
  • Percentage Taxes: These should be issued within 25 days after the end of each taxable quarter.
  • VAT Withholding: It must be issued on or before the 20th day following the end of each month

What happens if you don’t fill out the form?

Failure to file BIR Form 2307 or to provide accurate information can result in penalties and fines. It is the responsibility of payors to ensure that they are compliant with Philippine tax laws and regulations. 

This includes filing the form on time, providing complete and accurate information, and submitting the necessary supporting documents. In case of any doubts or uncertainties regarding the form, payors can seek assistance from reputable firms offering tax and accounting services in the Philippines to avoid errors and ensure compliance.

Travis is a global business development advisor. He has spent the last 14 years supporting business establishment and development in North America, Southeast Asia, and throughout the world. With multiple degrees from the University of Oregon, Travis currently splits his time between the US, and Bali, Indonesia. At RemotePad, Travis writes about remote work, hiring internationally and PEO/EOR business models.