BIR Form 2307 for Insurance Agents and Adjusters: Withholding Rates, ATC Codes, and a Worked Example

Commissions paid to insurance agents and insurance adjusters are withheld at 10% or 15%, depending on a ₱720,000 gross-income threshold — a separate bracket from the 5%/10% rate that applies to professional fees, brokers, and sales-representative commissions. The insurance company paying the commission is the withholding agent and issues BIR Form 2307 to the agent as proof of the amount withheld. This guide is part of the BIR Form 2307 series and covers the rates, ATC codes, and a worked example.

Who withholds tax on an insurance agent’s commission? #

The insurance company that pays the commission — whether the agent sells life, non-life, or health insurance policies — is the withholding agent responsible for deducting tax before releasing the payment, then reporting and remitting that amount to the BIR. This applies whether the agent is a full-time career agent under one insurer or an independent agent placing business with multiple companies, and whether the payee is an individual agent or a licensed insurance agency organized as a corporation.

An insurance adjuster — someone engaged to investigate and assess insurance claims on behalf of an insurer — is withheld under the same item as insurance agents. The insurer or the entity engaging the adjuster deducts the tax, remits it, and issues BIR Form 2307 covering the fee paid for adjustment work.

Why insurance agents and adjusters are not taxed like other professionals or brokers #

Insurance agents and insurance adjusters sit in their own item under the expanded withholding tax (EWT) rules of Revenue Regulations No. 2-98, as amended — a different bracket from the professional-fee item that covers lawyers, consultants, and independent sales representatives. That distinction matters because the two brackets use different income thresholds and, for individuals, different rates.

It is easy to conflate this item with two neighboring but separate categories:

• Professional and talent fees (which also cover general commission-basis agents and sales representatives) — individual payees here can qualify for 5% withholding if gross income for the year stays at or below ₱3,000,000 and a sworn declaration is on file, or 10% otherwise. See BIR Form 2307 for Professional Fees.
• Certain brokers and agents — a separate item covering customs, insurance, stock, immigration, and commercial brokers (not agents), which follows the same 5%/10% individual structure as professional fees. See BIR Form 2307 for Commissions and Brokers.

Insurance agents and insurance adjusters — the individuals and adjusting firms handling policy sales and claims work, distinct from insurance brokerage — are not folded into either bracket above. They carry their own rate tied to a ₱720,000 threshold, described below.

What rate and ATC code apply to insurance agent and adjuster commissions? #

Both individual and corporate insurance agents and insurance adjusters are withheld at 10% if gross income for the current year does not exceed ₱720,000, or 15% if it exceeds that amount, regardless of whether the payee is an individual or a corporation. That is the same rate pair and threshold used for the corporate tier of professional fees elsewhere in the regulations, but here it applies to individual agents as well, not just corporations.

This is a materially different outcome from professional fees or broker commissions, where an individual payee with a sworn declaration on file can access a 5% rate. An individual insurance agent has no equivalent 5% tier — the lowest available rate on this item is 10%. For the general reference table across payment types, see the ATC codes guide.

Does the sworn declaration mechanism apply here? #

No — the Annex B-1/B-2 sworn declaration and its ₱3,000,000 threshold, introduced by Revenue Regulations (RR) No. 11-2018, apply to the professional-fee and broker/agent items, not to insurance agents and insurance adjusters, so filing one will not lower an agent’s rate below 10%. RR No. 11-2018 restructured the individual withholding rate for professional fees specifically, lowering it to 5%/10% with a sworn declaration; it did not extend that lower-rate mechanism to the separate insurance agents and insurance adjusters item, which continues to run on the older ₱720,000 income test instead.

The declaration that professional fee, broker, and sales-commission payees use to access the 5% rate reads, in the payee’s own certification on Annex B-1:

“That for the current year ________, my gross receipts will not exceed Three Million Pesos (₱3,000,000) and that I am a non-VAT registered taxpayer.”

That certification — and the ₱3,000,000 figure it depends on — belongs to a different EWT item than the one covering insurance agents and adjusters. For how Annex B-1 and Annex B-2 work for the payees who do use them, see BIR Sworn Declaration for Lower Withholding. An insurance company should still document each agent’s cumulative gross income for the year to determine whether the 10% or 15% tier applies, but that documentation is not the ₱3,000,000-pegged Annex B-1/B-2 declaration used elsewhere in the same regulations.

Worked example: a ₱50,000 policy commission #

An individual insurance agent whose cumulative gross income for the year has not exceeded ₱720,000 is withheld ₱5,000 on a ₱50,000 policy commission at the 10% rate under ATC WI070, and the insurer that paid him issues BIR Form 2307 certifying that amount as creditable withholding tax.

Rico is an independent life insurance agent contracted with a domestic life insurance company. In August 2026, he closes a whole life policy with an annual premium of ₱200,000 and earns a first-year commission of ₱50,000. Rico’s cumulative gross commission income for the year, before this payment, is well under ₱720,000, so the insurer applies ATC WI070 at 10%:

The insurer remits the ₱5,000 through its monthly and quarterly EWT returns, reports Rico on its Quarterly Alphalist of Payees, and issues BIR Form 2307 showing ₱50,000 as the income payment, ATC WI070, and ₱5,000 as tax withheld. Rico credits the ₱5,000 against his income tax due when he files his annual return, either directly or by reporting the certificate through SAWT.

If Rico’s cumulative gross commissions for the year had already crossed ₱720,000 before this payment, the same ₱50,000 commission would instead be withheld at 15% (₱7,500) under ATC WI071.

Frequently asked questions #

What is the withholding tax rate on commissions paid to insurance agents? #

Insurance agents and insurance adjusters are withheld at 10% if their gross income for the current year does not exceed ₱720,000, or 15% if it exceeds ₱720,000, under the expanded withholding tax rules of Revenue Regulations No. 2-98 as amended. This is a separate item from the professional-fee bracket and uses a different income threshold.

Which ATC codes apply to insurance agent and adjuster commissions on BIR Form 2307? #

Individual insurance agents and insurance adjusters generally use ATC WI070 at 10% (gross income up to ₱720,000) or WI071 at 15% (gross income over ₱720,000). Corporate or juridical payees in this category use the parallel WC070 (10%) and WC071 (15%) codes.

Does the ₱3,000,000 sworn declaration threshold apply to insurance agents? #

No. The Annex B-1/B-2 sworn declaration mechanism and its ₱3,000,000 gross-receipts threshold apply to professional fees, brokers, and sales-representative commissions under Revenue Regulations No. 11-2018. Insurance agents and insurance adjusters are a separate line item that turns on a lower ₱720,000 threshold instead, so the 5% rate available to other individual payees does not apply here.

How is an insurance agent’s commission different from an insurance broker’s commission for withholding purposes? #

Insurance agents and insurance adjusters have their own item under the withholding tax regulations. Insurance brokers, by contrast, fall under the separate “certain brokers and agents” item alongside customs, stock, immigration, and commercial brokers, which follows the professional-fee-style 5%/10% individual rate structure. The two are easy to confuse but sit in different rate brackets.

Who withholds the tax on an insurance agent’s commission? #

The insurance company paying the commission to its agent or adjuster is the withholding agent. It deducts the applicable tax before releasing the commission, remits it to the BIR, and issues BIR Form 2307 to the agent as proof of the amount withheld.

Can an insurance agent claim the withheld tax as a credit? #

Yes. The amount withheld and reflected on BIR Form 2307 is a creditable withholding tax that the insurance agent applies against their income tax due when filing their annual income tax return, whether through direct crediting or a Summary Alphalist of Withholding Taxes (SAWT) attachment.

Summary #

Insurance agents and insurance adjusters do not follow the professional-fee 5%/10% withholding structure — they sit in their own item, withheld at 10% up to ₱720,000 in gross income and 15% above it, for both individual (WI070/WI071) and corporate (WC070/WC071) payees. The ₱3,000,000 Annex B-1/B-2 sworn declaration that lowers other payees to 5% does not extend to this item. Insurers should confirm an agent’s cumulative gross income for the year before selecting the ATC code on BIR Form 2307. For the related but distinct categories, see BIR Form 2307 for Commissions and Brokers and BIR Form 2307 for Professional Fees.