BIR Form 2307 for Freelance Bookkeepers: Professional Fee, Even Without a CPA License
A freelance bookkeeper hired to maintain a small business’s books is withheld under the same professional/talent-fee bracket as a licensed CPA, even without a CPA license, because BIR Form 2307 withholding rates turn on the nature of the service rendered, not on professional licensure.
This guide covers why bookkeeping falls under the professional-fee bracket rather than the lower general-services rate, how a corporate bookkeeping firm is treated differently, and a worked monthly retainer example.
Generate a Bookkeeper's BIR Form 2307 FREE →Why bookkeeping falls under the professional-fee bracket, not the 2% services rate #
Revenue Regulations (RR) No. 11-2018’s expanded withholding tax rules on professional and talent fees are not limited to Professional Regulation Commission (PRC)-licensed professions. The bracket applies broadly to individuals compensated for rendering personal services — a category that already includes non-PRC-licensed roles elsewhere in this series, such as freelance writers and virtual assistants. Bookkeeping — recording transactions, reconciling accounts, and preparing basic financial reports for a client — is squarely this kind of individually rendered professional service, distinct from the flat 2% general contractor/services rate that applies to businesses supplying labor, materials, or facility services (see BIR Form 2307 for Purchases of Services).
| Payee | Rate | Threshold |
|---|---|---|
| Individual freelance bookkeeper (CPA or not) | 5% | Cumulative gross income from that payor for the year ≤ ₱3,000,000 |
| Individual freelance bookkeeper (CPA or not) | 10% | Cumulative gross income from that payor for the year > ₱3,000,000 |
| Corporate bookkeeping/accounting firm | 10% | Gross income ≤ ₱720,000 |
| Corporate bookkeeping/accounting firm | 15% | Gross income > ₱720,000 |
Freelance bookkeeper vs. an outsourced bookkeeping firm #
An individual freelance bookkeeper and a corporate bookkeeping or accounting outsourcing firm sit in the same professional-fee family, but at different rate tiers. A sole practitioner bookkeeper working directly for a client is an individual payee (5%/10%); a registered bookkeeping firm or accounting outsourcing company is a juridical payee (10%/15%), the same corporate-vs-individual split already used throughout this series for GPP professional fees and other professional categories. The client’s withholding obligation and BIR Form 2307 issuance duty apply either way — only the applicable rate tier changes.
Worked example: a small business’s monthly bookkeeping retainer #
A small retail business hires an individual freelance bookkeeper, not a CPA, to record daily sales and prepare monthly summaries for ₱15,000 per month.
Since the bookkeeper’s cumulative gross income from this client for the year remains under ₱3,000,000, the 5% rate applies:
- Gross monthly retainer: ₱15,000
- Creditable withholding tax withheld (5%): ₱750
- Net amount paid to the bookkeeper: ₱14,250
The business issues the bookkeeper a BIR Form 2307 each month, or a consolidated quarterly certificate, and reports the payment on its QAP filing.
Frequently asked questions #
Does a freelance bookkeeper need a CPA license to be withheld under the professional-fee bracket? #
No. Revenue Regulations No. 11-2018’s professional/talent-fee bracket covers individuals paid for rendering services broadly, including bookkeeping, and does not require a PRC license. A non-CPA bookkeeper’s fee is still withheld under this bracket rather than the flat 2% general services rate.
What withholding rate applies to a freelance bookkeeper’s monthly retainer? #
An individual freelance bookkeeper generally falls under the 5%/10% professional/talent-fee bracket under RR No. 11-2018: 5% if cumulative gross income from that payor for the year is ₱3,000,000 or less, 10% above that threshold.
Is an outsourced bookkeeping firm withheld the same way as an individual freelance bookkeeper? #
No. A corporate bookkeeping or accounting service provider is withheld under the corporate professional-fee bracket — 10% if annual gross income is ₱720,000 or less, 15% above that — rather than the individual 5%/10% bracket that applies to a sole freelance bookkeeper.
Summary #
A freelance bookkeeper’s fee is withheld under the same 5%/10% professional-fee bracket as any other individual service provider, regardless of CPA licensure, while a corporate bookkeeping firm draws the 10%/15% juridical rate. Small businesses that hire freelance bookkeepers should withhold accordingly rather than defaulting to the flat 2% services rate. For related content, see BIR Form 2307 for Software Developers and IT Consultants and the BIR Form 2307 hub.