BIR Form 2307 for Massage Therapists and Spa Services Booked by Corporate Wellness Programs

Whether a corporate wellness booking triggers a 2% or a 5%/10% withholding rate depends on who the payee actually is — a registered spa or wellness center as a business, or an individual freelance massage therapist hired directly. This is the same distinction already worked through for gyms, fitness studios, and personal trainers in this series, applied to wellness and spa services.

This guide covers both scenarios and a worked example for a corporate wellness day.

Corporate-booked spa or wellness center: the 2% facility-services rate #

When a company pays a registered spa, wellness center, or massage clinic to provide services to its employees — for example, an in-office massage day or an offsite wellness package — the clinic is generally withheld under the flat 2% general contractor/services rate, the same bracket that applies to gyms and fitness studios booked corporately, rather than the individual professional-fee bracket. The clinic operates as a business entity supplying a facility service, not as an individually licensed professional.

Hiring an independent freelance therapist directly #

If a company bypasses a spa or clinic and books an independent freelance massage therapist directly — the same arrangement already covered for personal trainers — the individual falls under the 5%/10% professional/talent-fee bracket under Revenue Regulations No. 11-2018, not the flat 2% rate, since the payment goes to an individual service provider rather than a registered facility business.

Worked example: a corporate wellness day #

A company organizes a wellness day for its 40 employees and books a registered spa for onsite massage sessions, paying the spa ₱60,000 for the full-day package.

Because the payee is the spa as a business (a facility/services provider), the 2% rate applies:

• Gross invoice: ₱60,000
• Creditable withholding tax withheld (2%): ₱1,200
• Net amount paid to the spa: ₱58,800

If the company instead hired an independent freelance massage therapist directly for the same event, and this is the therapist’s only income from the company this year, the 5% individual rate would apply instead:

• Gross fee: ₱60,000
• Creditable withholding tax withheld (5%): ₱3,000
• Net amount paid to the therapist: ₱57,000

Frequently asked questions #

Does a company withhold tax when it books a spa for a corporate wellness event? #

Yes. A company paying a spa, wellness center, or massage clinic for services rendered to its employees is generally required to withhold creditable tax on the full invoice and issue BIR Form 2307 to the spa or clinic, the same as it would for any other contracted facility service.

What rate applies when a company books a spa or wellness center as a business? #

A spa, wellness center, or massage clinic operating as a registered business is generally withheld under the flat 2% general services/contractor rate, similar to gyms and fitness studios booked by corporate wellness programs.

What rate applies if a company hires an independent freelance massage therapist directly, not through a spa? #

An individual freelance massage therapist hired directly, without going through a registered spa or clinic, generally falls under the 5%/10% individual professional/talent-fee bracket under Revenue Regulations No. 11-2018, depending on cumulative gross income from that payor for the year.

Summary #

A corporate wellness booking is withheld at the flat 2% rate when the payee is a registered spa or clinic operating as a business, and at the 5%/10% individual bracket when the payee is an independent freelance therapist hired directly — the same facility-vs-individual distinction already established for gyms and personal trainers. For related content, see BIR Form 2307 for Gyms, Fitness Studios, and Personal Trainers and the BIR Form 2307 hub.