BIR Form 2307 for Fire Protection and Fire Extinguisher Refilling Services
A business that pays a fire protection or fire extinguisher servicing contractor — for recurring extinguisher refilling, hydro-testing, recharging, or fire alarm and sprinkler system inspection — withholds 2% expanded withholding tax (EWT) under RR No. 2-98, Section 2.57.2(E), and issues BIR Form 2307, the same general contractor bracket this series already covers for other recurring building-maintenance suppliers.
This guide is part of the BIR Form 2307 series. It covers who withholds on a fire-safety servicing payment, why this differs from simply buying a new extinguisher unit at retail, and a worked example for a commercial building’s annual fire-safety contract.
Generate Your Fire-Safety Vendor's BIR Form 2307 FREE →Who withholds on a fire-safety servicing payment? #
The obligation follows the same payor-status test this series applies to every business-service supplier: a corporation or business-connected individual withholds, a private homeowner generally does not. RR No. 2-98 sets the test this way:
“(A) In general, any juridical person, whether or not engaged in trade or business; (B) An individual, with respect to payments made in connection with his trade or business…”
— RR No. 2-98, Section 2.57.3(A)–(B)
A property management company paying a fire-safety contractor to refill and hydro-test extinguishers across an office tower, or a manufacturing plant paying for its sprinkler and alarm system’s annual inspection, is a withholding agent under clause (A) or (B). A homeowner paying for a single extinguisher to be refilled at their own residence falls outside the rule.
Common fire-safety payors in this bracket include:
- An office building or BPO center engaging a contractor for building-wide extinguisher refilling and hydro-testing
- A factory or warehouse paying for an annual fire alarm, sprinkler, and fire suppression system inspection required for its fire safety inspection certificate (FSIC) renewal
- A retail mall or hospital contracting out full-building fire extinguisher servicing across multiple floors or wings
- A manufacturing plant with a standing maintenance contract covering both extinguisher recharging and periodic fire-drill or evacuation-system checks
Each of these payors withholds 2% on the service fee it pays, regardless of whether the contractor bills monthly, quarterly, or on a single annual invoice.
Servicing contract vs. buying a new extinguisher unit #
Fire extinguisher refilling, hydro-testing, and alarm or sprinkler inspection are services performed on equipment the business already owns, which is why they fall under the 2% service-withholding bracket — a one-time retail purchase of a brand-new extinguisher unit is a different transaction entirely. When a business simply buys a new fire extinguisher off the shelf from a hardware or safety-equipment supplier, that payment is for goods, not a service, and generally sits outside the expanded withholding tax service brackets this series covers. The 2% rate under BIR Form 2307 for Contractors and Subcontractors applies specifically to the recurring maintenance work — the same general contractor bracket covered for a different recurring-service supplier in BIR Form 2307 for Landscaping and Grounds Maintenance Contractors.
| Payee | ATC | Rate |
|---|---|---|
| Fire protection/fire extinguisher servicing contractor, individually owned | WI120 | 2% |
| Fire protection/fire extinguisher servicing contractor, organized as a corporation | WC120 | 2% |
A condominium corporation or homeowners’ association withholds on its fire-safety contractor the same way any other juridical person does, regardless of its VAT-exempt dues status, the same principle this series covers for HOA contractor payments generally in Does an HOA or Condo Corporation Need to Withhold Tax on Contractor Payments?
Worked example: a BPO building’s annual fire-safety contract #
Meridian BPO Center engages SafeGuard Fire Solutions Inc. for an annual contract covering extinguisher refilling and hydro-testing across its 8-floor office building, plus a full fire alarm system inspection.
| Item | Amount |
|---|---|
| Annual fire-safety servicing fee (VAT-exclusive) | ₱35,000.00 |
| EWT withheld (2%, ATC WC120) | ₱700.00 |
| VAT (12% on ₱35,000) | ₱4,200.00 |
| Net cash to SafeGuard (fee + VAT − EWT) | ₱38,500.00 |
Meridian withholds ₱700 as the invoice is booked and issues SafeGuard a BIR Form 2307 for the quarter in which the fee is paid or accrued, showing ATC WC120 and the amount withheld — the same treatment Meridian would apply to any other recurring building-maintenance contractor it engages. If Meridian’s contract instead split the ₱35,000 into two semi-annual invoices of ₱17,500 each, the 2% withholding would simply apply to each invoice as it is booked — ₱350 per billing — rather than being deferred and withheld once at year-end. Either way, SafeGuard consolidates every certificate it receives from Meridian and its other clients when computing its creditable withholding tax for the year.
Frequently asked questions #
Does a business have to withhold tax when paying a fire protection or fire extinguisher servicing contractor? #
Yes, if the payor is a corporation or a business-registered individual. A company paying a fire-safety contractor for extinguisher refilling, hydro-testing, or fire alarm and sprinkler inspection is a withholding agent under RR No. 2-98, Section 2.57.3(A)-(B), and must withhold expanded withholding tax and issue BIR Form 2307.
What withholding tax rate applies to fire extinguisher refilling and fire-safety servicing fees? #
Fire protection and fire extinguisher refilling services generally fall under the 2% general contractor/business-services bracket under RR No. 2-98, Section 2.57.2(E), as amended by RR No. 11-2018 — ATC WI120 for an individually run contractor or WC120 for one organized as a corporation.
Is buying a brand-new fire extinguisher from a hardware or safety-equipment store withheld the same way? #
No. A one-time retail purchase of a new extinguisher unit is a purchase of goods, not a payment for a service, and generally sits outside this service-withholding bracket. The 2% rate applies specifically to the recurring servicing work — refilling, hydro-testing, recharging, and inspection — performed on equipment the business already owns.
Does a condominium corporation withhold on its fire-safety contractor the same way a regular company does? #
Yes. A condominium corporation or homeowners’ association is a juridical person under RR No. 2-98, Section 2.57.3(A), regardless of its VAT-exempt dues status, and must withhold on payments to its fire protection or fire extinguisher servicing contractor the same way any other corporation does.
How is withholding computed on an annual fire-safety servicing contract? #
Withholding follows whichever happens first — payment, the expense being booked in the payor’s records, or the invoice date — under RR No. 2-98, Section 2.57.4. For an annual or multi-floor fire-safety contract, the fee is withheld when it is paid, accrued, or invoiced, not deferred until the contract term ends.
Summary #
Fire protection and fire extinguisher servicing work — refilling, hydro-testing, recharging, and fire alarm or sprinkler inspection — sits in the flat 2% general business-services bracket (ATC WI120/WC120) under RR No. 2-98, Section 2.57.2(E), the same bracket covered for another recurring-service supplier in BIR Form 2307 for Landscaping and Grounds Maintenance Contractors. A one-time retail purchase of a new extinguisher unit, by contrast, is a goods purchase and sits outside this service-withholding rate entirely. See BIR Form 2307 for Contractors and Subcontractors for the general 2% bracket this rate draws from.