BIR Form 2307 Explained: The Tax You Already Paid (and How to Claim It)

You invoice a client ₱20,000. They pay you ₱19,000 and send a form you didn't ask for. That missing ₱1,000 isn't a fee or a mistake — it's income tax they paid to the BIR on your behalf, and the form is your proof. That form is BIR Form 2307, and if you lose it, you can end up paying the same tax twice.

What is BIR Form 2307?

Form 2307 is the Certificate of Creditable Tax Withheld at Source. When a business pays you for services or goods, the law often requires it to withhold a percentage of the payment and remit it to the BIR. The 2307 is the certificate they give you showing how much they withheld.

The key word is creditable: that withheld amount is an advance payment of your income tax. When you file your quarterly and annual returns, you subtract it from what you owe.

• The payor (your client or the platform) is the withholding agent — they withhold, remit, and issue the 2307.
• You are the payee — you collect the 2307 and claim the credit.

Who gives you a 2307?

• Philippine companies that hire you as a freelancer or professional — agencies, corporations, and most registered businesses that are required to withhold.
• Online marketplaces — Shopee, Lazada, TikTok Shop and similar platforms withhold 1% on one-half of your gross remittances (effectively 0.5%) under RR 16-2023, and issue 2307s for it. More in our TikTok Shop seller guide.
• Not foreign clients. Upwork clients, overseas companies, and platforms paying you from abroad generally don't withhold Philippine tax — so no 2307. You pay the full tax yourself on your returns.

How much do they withhold?

For self-employed individuals and professionals, the common expanded withholding tax (EWT) rates are:

• 5% — if your annual gross income is ₱3 million or less, and you've given the payor a sworn declaration saying so.
• 10% — if your gross income is above ₱3 million, or if you haven't submitted the sworn declaration. Many freelancers get hit with 10% simply because they never sent one.
• Online sellers: 1% on half of gross remittances (0.5% effective). If your total annual remittances across all platforms are ₱500,000 or less, you can submit a sworn declaration to be exempted.

Rates depend on the type of payment and your registration, and the BIR updates them from time to time — confirm the rate that applies to you with your RDO or a CPA.

What's on the form

A 2307 is a single page. The parts you need to check:

1. Period covered — the quarter (e.g., July 1 to September 30).
2. Payee information — your name, TIN, and registered address. A wrong TIN makes the certificate useless for your credit, so check it every time.
3. Payor information — your client's name and TIN.
4. Income payments and tax withheld — the amounts per month of the quarter, with the ATC (alphanumeric tax code) for the type of payment.
5. Signatures — signed by the payor's authorized representative.

When should you receive it?

Withholding agents are supposed to issue the 2307 within 20 days after the end of each quarter, or when you ask for it. In practice, many clients only send them when chased — so chase. The best time is right after each quarter ends, and again in November–December before everyone disappears for the holidays. (That's item #3 on our year-end tax checklist.)

How to claim your 2307 on 1701Q

Here's how the credit works, using the ₱20,000 example:

Tax due for the quarter ₱3,000 − Creditable tax withheld (2307) ₱1,000 = ₱2,000 still payable

Without the 2307, you'd pay the full ₱3,000 — on top of the ₱1,000 your client already remitted.

1. Collect every 2307 for the quarter.
2. On your 1701Q, enter the total in the line for creditable tax withheld per BIR Form 2307 for that quarter. eBIRForms has a schedule where you list each certificate.
3. Keep the originals (or signed copies) with your books of accounts. The BIR can ask for them, especially if you claim a large credit or a refund.
4. On your annual return (1701 or 1701A), all four quarters' credits are totaled. If credits exceed your tax due, you can choose to carry over the excess or claim a refund.

The 2307 credit applies to income tax. It doesn't reduce your 2551Q percentage tax.

Common 2307 problems (and fixes)

• "My client withheld but never gave me a 2307." Ask in writing, referencing the quarter and amounts. They're required to issue it. Without it, claiming the credit is difficult.
• "The TIN or name is wrong." Ask for a corrected certificate. Don't file with a wrong one.
• "I got it late, after I already filed 1701Q." You can generally include it in a later return for the same year, or in your annual return. Ask your RDO or CPA about your case.
• "I have dozens from Shopee/Lazada." Platforms usually make them downloadable from the seller center. Download them every quarter rather than once a year.
• "I'm on the 8% option — do 2307s still matter?" Yes. Tax withheld from you is still a credit against your income tax due. See 8% vs graduated rates.

2307 vs 2316 vs 2306

• 2307 — creditable withholding on payments to freelancers, professionals, suppliers, and sellers. You claim it as a credit.
• 2316 — the certificate employees get from their employer for compensation. Not for freelance income.
• 2306 — final withholding tax (e.g., certain interest or prizes). The tax is already final, so there's nothing to claim.

Keep track without the shoebox

The hard part of 2307s isn't the math — it's remembering which clients withheld, for which quarter, and which certificates you're still missing. Halin AI keeps your income records by client and quarter, so at filing time you can see exactly what you earned from whom and match it to the 2307s you hold. Snap a photo of each certificate to keep it with your records, and get reminders before every deadline. 100% free during early access — start here.

Common questions

Is Form 2307 required to file 1701Q?

Only if tax was withheld from you. If your clients are all foreign or don't withhold, you won't have any 2307s, and you simply pay the full tax due.

Can I claim a 2307 without the original?

Many payors now send signed electronic copies, which are commonly accepted. Keep a clean, legible copy for every certificate you claim, and keep it for the full retention period.

Is the withheld amount an extra tax?

No. It's part of your income tax, paid in advance by your client. It only becomes a loss if you fail to claim it.

How do I stop being withheld at 10%?

If your annual gross income is ₱3 million or less, give each client the sworn declaration so they withhold at 5% instead.

Disclaimer: General information only, not tax or legal advice. Rates, forms, and procedures change and vary by situation — verify at bir.gov.ph or with your RDO, and have a CPA review your filings.