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

What is BIR Form 2307?

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

The form lies under assets in the accounting books and is considered an income tax prepayment since the deductions are from the income tax dues of the taxpayer (quarterly and annual income tax return). It is important to taxpayers as it provides credible proof of their withholding tax. Taxpayers cannot claim their tax credit without the Certificate of Credible Tax Withheld at Source or 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. There are employers who hire project-based employees that need to file the BIR Form 2307, which needs to 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:

1. Obtain a copy of the form

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

2. 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

3. Attach supporting documents

Attach the necessary supporting documents to the form, including:

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

4. Submit the form

Submit the completed BIR Form 2307 to the BIR along with the required supporting documents.

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 the 15th of May, August, and November. The deadline for the annual income tax return 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 along with the income payment upon the request of the taxpayer. 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: It 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.

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