BIR Form 2307 Certificate of Creditable Tax Withheld
Updated June 13, 2026
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Definition
BIR Form 2307, the Certificate of Creditable Tax Withheld at Source, is issued by withholding agents to payees to show the creditable withholding tax deducted from payments subject to expanded withholding tax (EWT), such as professional fees, rentals and payments to suppliers.
When businesses pay professional fees, rentals or other income payments covered by expanded withholding, they withhold a percentage set by regulation and remit it to the BIR. The payor then gives the payee BIR Form 2307 as proof of the tax withheld. The payee credits that amount against income tax due on its quarterly and annual returns. The form shows the payor's and payee's TINs, the nature of the income payment, the monthly amounts paid in the quarter and the tax withheld. Compensation of employees is not covered: employers use BIR Form 2316. Final taxes, such as on interest and dividends, are certified on BIR Form 2306.
Detailed explanation
Overview
BIR Form 2307, the Certificate of Creditable Tax Withheld at Source, is issued by withholding agents to payees to document the creditable income tax, mostly expanded withholding tax (EWT), deducted from income payments. Payees use it to claim tax credits on their quarterly and annual income tax returns (NIRC §58(B), RR 2-98).
Legal Basis and Authority
NIRC §57(B) authorizes creditable withholding on income payments at rates set by regulation, between 1% and 15% from 2019. NIRC §58(B) requires withholding agents to give recipients a written statement of payments made and taxes withheld. RR 2-98, as amended by RR 11-2018, prescribes Form 2307 for creditable withholding tax and Form 2306 for final withholding tax.
Who Issues Form 2307
Any payor required to withhold creditable tax issues Form 2307, including corporations, partnerships, individuals in business and government agencies paying professional fees, rentals and other payments covered by expanded withholding. Employers do not use it for employees' compensation; that goes on BIR Form 2316. The certificate is given within 20 days after the close of each quarter, or together with the payment if the payee asks (RR 2-98 Sec. 2.58, as amended by RR 11-2018).
Key Information on Form 2307
The form shows (1) the payee's name, address and TIN; (2) the payor's name, address and TIN; (3) the period covered; (4) the nature of each income payment and its ATC code; (5) the amounts paid in each month of the quarter and the quarterly total; and (6) the tax withheld.
Types of Income Covered
Form 2307 covers creditable withholding, for example: (1) professional fees paid to individuals, 5% if the payee's gross income does not exceed ₱3,000,000 and a sworn declaration is given, otherwise 10%; (2) professional fees paid to juridical persons, 10% or 15% depending on whether gross income exceeds ₱720,000; (3) rentals of real property used in business, 5%; and (4) payments by top withholding agents to suppliers, 1% for goods and 2% for services (RR 2-98 Sec. 2.57.2, as amended by RR 11-2018). Final taxes on interest, dividends and other passive income are certified on Form 2306, not Form 2307.
How Payees Use Form 2307
Payees subtract the creditable tax on their Forms 2307 from the income tax due on their quarterly and annual returns. If the tax withheld exceeds the tax due, the excess is refunded or credited (NIRC §58(E), §204). Payees keep the certificates to support the credits claimed.
Withholding Agent Compliance
Withholding agents must (1) withhold at the correct rate; (2) remit monthly using BIR Form 0619-E by the 10th of the following month (15th for eFPS filers) and file the quarterly return BIR Form 1601-EQ by the last day of the month after the quarter; (3) issue Form 2307 within 20 days after each quarter; (4) file the annual information return BIR Form 1604-E with the alphalist of payees by March 1 of the following year; and (5) keep records for 5 years from the filing deadline (RR 11-2018, NIRC §235). Failures draw surcharges, interest and penalties (NIRC §248, §249, §251).
Digital and Electronic Filing
Withholding agents file Forms 0619-E, 1601-EQ and 1604-E through eFPS or eBIRForms. Many issue Form 2307 as a PDF by email, which payees keep with their records.
Common Issues and Corrections
If a Form 2307 has errors, such as a wrong amount withheld, payee name or TIN, the withholding agent issues a corrected certificate. Payees should check every certificate when received and raise discrepancies with the withholding agent before filing the return that claims the credit (RR 2-98).
Relationship to Other Tax Forms
Form 2307 works with: (1) Forms 0619-E and 1601-EQ, the withholding agent's monthly and quarterly expanded withholding returns; (2) Form 1604-E, the annual information return with the alphalist of payees; (3) Forms 1701Q, 1701, 1701A, 1702Q and 1702, where payees claim the credits; and (4) Form 2316, which is the separate certificate for employees' compensation (RR 2-98, RR 11-2018).
Penalties for Non-Compliance
A withholding agent that fails to withhold or remit is liable for the tax not withheld, plus a 25% surcharge and interest at 12% a year (NIRC §248, §249, §251). Willful failure is a criminal offense. Payees who claim credits without supporting Forms 2307 risk disallowance of the credit.
Why it matters
Self-employed professionals, suppliers and lessors rely on Form 2307 to claim credit for taxes clients already withheld from their payments. Without the certificate, the credit can be disallowed, which leads to paying the same tax twice. For payors, issuing correct certificates on time is part of their withholding obligation and helps them in a BIR audit.
How it works
Withholding Agent Issues Certificate
When a payment is subject to creditable withholding, the payor deducts the rate set by regulation and remits it to the BIR. The payor gives the payee Form 2307 within 20 days after the close of each quarter, showing the monthly payments, quarterly total and tax withheld, or together with the payment if the payee asks (RR 2-98 Sec. 2.58, as amended by RR 11-2018).
Payee Receives and Verifies
The payee checks that the name, TIN, amounts and nature of income are correct. If not, the payee asks the withholding agent for a corrected certificate before filing the return that claims the credit, and keeps all certificates on file.
Payee Claims Tax Credit on ITR
On the quarterly return (Form 1701Q or 1702Q) and the annual return (Form 1701, 1701A or 1702), the payee totals the creditable tax shown on its Forms 2307 and subtracts it from the income tax due. Excess creditable tax is refunded or credited under NIRC §58(E) and §204.
BIR Reconciliation and Audit
The BIR matches payees' claimed credits with the withholding agent's quarterly BIR Form 1601-EQ remittances and the alphalist of payees attached to its annual BIR Form 1604-E. Both sides keep records for 5 years from the filing deadline (NIRC §235).
Examples
Salaried Employee: Form 2316, Not 2307
Juan dela Cruz earns ₱60,000 a month as an employee. His employer reports his compensation and the tax withheld on BIR Form 2316, issued by January 31 of the following year. Form 2307 is not used for employees' compensation; it covers payments subject to expanded withholding, such as fees paid to professionals.
Freelance Consultant Receiving Professional Fees
Maria Santos, a freelance consultant, receives ₱500,000 in professional fees from three corporate clients during the year. She gave each client a sworn declaration that her gross income will not exceed ₱3,000,000, so each withholds 5% (₱25,000 in total) and issues Form 2307 each quarter. She credits the ₱25,000 on her income tax returns (RR 2-98 Sec. 2.57.2(A), as amended by RR 11-2018).
Rental Income with EWT
Anna Reyes leases office space to a corporation for ₱200,000 a year. The tenant withholds 5% EWT on the rent (₱10,000) and issues Form 2307. Anna reports the ₱200,000 rental income and credits the ₱10,000; if her income tax is ₱25,000, she pays ₱15,000 (RR 2-98 Sec. 2.57.2(B)).
Multiple Withholding Agents
Roberto Gonzales receives salary (₱500,000, with ₱42,500 withheld, on Form 2316), professional fees (₱150,000, with ₱7,500 withheld at 5%, on Form 2307) and bank interest (₱50,000, with ₱10,000 final tax). He credits ₱50,000 (₱42,500 plus ₱7,500) on his annual return. The final tax on interest cannot be credited.
Corrected Form 2307 After Error Discovery
Pedro Reyes, a consultant, receives a Form 2307 from a client showing ₱800,000 of fees but only ₱8,500 withheld, while the client actually withheld 5%, or ₱40,000. The client issues a corrected Form 2307 showing ₱40,000, and Pedro claims the full ₱40,000 credit.
Common misconceptions
- Myth: Form 2307 is optional; I can claim withholding tax credits without it.
- Fact: Form 2307 is the BIR-prescribed proof of creditable withholding. Credits claimed without it can be disallowed during an audit (RR 2-98).
- Myth: If a client doesn't issue Form 2307, the credit is simply lost.
- Fact: Issuing Form 2307 is the client's obligation, within 20 days after each quarter. Ask for it in writing; the credit needs the certificate, so follow up before you file (RR 2-98).
- Myth: Form 2307 is for employees.
- Fact: Employees receive BIR Form 2316. Form 2307 goes to self-employed individuals, professionals, suppliers and lessors whose clients withheld expanded withholding tax (RR 2-98 Sec. 2.57.2).
- Myth: I can claim withholding tax credits even if the amounts on Form 2307 are incorrect.
- Fact: You must verify Form 2307 accuracy before filing your ITR. Claiming credits for incorrect amounts invites BIR audit and potential penalties. Request corrected certificates from withholding agents if errors exist (RR 2-98).
- Myth: Excess withholding tax credits are lost if not used in the current year.
- Fact: Excess creditable tax can be refunded or credited (NIRC §58(E), §204).
Questions people ask
What is the deadline for withholding agents to issue Form 2307?
Within 20 days after the close of each quarter, or together with the payment if the payee asks for it (RR 2-98 Sec. 2.58, as amended by RR 11-2018). For example, the certificate for January to March payments is due by April 20.
Can I claim a tax credit without Form 2307 if I have payslips or invoices?
Form 2307 is the document that establishes the fact of withholding for a tax credit claim. Invoices and payment records support it but do not replace it. If a payor does not issue the certificate, ask for it in writing before filing your return.
Can I claim Form 2307 credits if I am not required to file an ITR?
Self-employed individuals and professionals file income tax returns regardless of the amount of gross income, and that return is where Form 2307 credits are claimed. Excess creditable tax can be refunded or credited (NIRC §51(A)(2), §58(E)).
What happens if I receive multiple Form 2307 certificates from different withholding agents?
Total the creditable tax shown on all Forms 2307 for the period and claim the total against the income tax due on your quarterly or annual return.
Is Form 2307 the same as a withholding tax receipt?
No. Form 2307 is the BIR certificate of creditable tax withheld that payees use for tax credit claims. A payor's own receipt or payment advice is not a substitute.
Can I file my ITR without Form 2307 if I know the withholding amount?
File on time either way, but claim only credits you can support. Credits without Form 2307 can be disallowed in an audit, so obtain the certificate from the withholding agent before filing if you can.
What is the penalty for a withholding agent who fails to issue Form 2307?
Failing to issue certificates and other information as required carries penalties under the Tax Code. A withholding agent that fails to withhold or remit is liable for the tax not withheld, plus surcharge and interest, and willful failure is a criminal offense (NIRC §248, §249, §251).
In practice
- Payors subject to expanded withholding issue Form 2307 within 20 days after each quarter; employers issue BIR Form 2316 to employees by January 31.
- Freelancers and consultants should request Form 2307 from every client making payments subject to EWT; without it, they cannot claim tax credits and may overpay taxes.
- Payees must cross-check Form 2307 amounts against payslips, invoices, and bank statements to catch withholding errors before filing their ITR.
- Withholding agents report the payees covered by Form 2307 in the quarterly alphalist attached to Form 1601-EQ and in the annual alphalist attached to Form 1604-E.
- Withholding agents who fail to remit withheld taxes to the BIR on time face surcharges and interest even if they issued Form 2307 to payees; the certificate does not excuse non-remittance.
Next steps
Learn more
Expanded Withholding Tax Calculator
Professional Income Tax Calculator
Annual Income Tax Calculator
BIR Form 1701 (Annual Income Tax Return)
BIR Form 1601EQ (Quarterly Remittance Return Of Creditable Income Taxes Withheld (Expanded))
BIR Form 1701A (Short Form ITR)
Expanded Withholding Tax Guide
How To File Annual Income Tax Return
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Sources & References (2)
Primary sources and the laws, regulations, and official issuances this page relies on. Each citation links directly to the issuing authority’s document.
- Bureau of Internal Revenue. “BIR Form 2307 (Certificate of Creditable Tax Withheld at Source).” bir.gov.ph. Bureau of Internal Revenue, BIR Form 2307. Accessed .