What Is BIR Form 2307 and When Must You Issue It?

Q: "What is BIR Form 2307?"

"BIR Form 2307 is the Certificate of Creditable Tax Withheld at Source issued by a withholding agent to a payee as proof that income tax was withheld on a qualifying payment."

Q: "Who must issue BIR Form 2307?"

"Withholding agents—including employers, government offices, and businesses required to withhold tax on income payments—must issue BIR Form 2307 to payees when creditable withholding applies."

Q: "When should BIR Form 2307 be issued?"

"BIR Form 2307 should be issued when a payment subject to creditable withholding tax is made, so the payee can claim the withheld amount as a tax credit."

Q: "How is BIR Form 2307 different from BIR Form 2316?"

"BIR Form 2307 covers creditable tax withheld at source on various income payments, while BIR Form 2316 is the annual Certificate of Compensation Payment/Tax Withheld for employee compensation."

Q: "Can a payee use BIR Form 2307 for income tax filing?"

"Yes. Payees use BIR Form 2307 to support claims for creditable withholding tax against income tax due on their annual return or applicable quarterly filings."

BIR Form 2307 is the Certificate of Creditable Tax Withheld at Source issued by a withholding agent to a payee when income tax is withheld on a qualifying payment. The form serves as official proof of withholding and allows the payee to claim the withheld amount as a tax credit against income tax due.

This guide is part of the BIR Form 2307 series. It explains what BIR Form 2307 is, who must issue it, when it applies, and how it differs from BIR Form 2316.

What is BIR Form 2307? #

BIR Form 2307 is an official BIR certificate that documents creditable withholding tax on income payments such as professional fees, rent, commissions, and other income subject to withholding. The withholding agent completes the form and provides copies to the payee and the Bureau of Internal Revenue as required.

Key details:

Official name: Certificate of Creditable Tax Withheld at Source
Issued by: the withholding agent (not the payee)
Purpose: proof of tax withheld for the payee’s tax credit claim
Related filings: withholding tax returns and alphalist/SAWT reporting where applicable

Who must issue BIR Form 2307? #

A withholding agent must issue BIR Form 2307 when making payments subject to creditable withholding tax under applicable BIR regulations. This includes businesses, government entities, and other persons designated as withholding agents for specific income types.

Common withholding agents:

Corporations and partnerships paying professional fees
Government agencies making contractual payments
Businesses paying rent, commissions, or other withholdable income
Employers or payors where creditable withholding applies (distinct from compensation covered by BIR Form 2316)

When is BIR Form 2307 required? #

BIR Form 2307 is required when a payment triggers creditable withholding tax and the payee needs documented proof of the amount withheld. The form should be issued in connection with the payment or within the period required by the applicable BIR issuance.

Typical triggers:

Payment of income subject to creditable withholding (e.g., professional fees, certain rentals)
Completion of a transaction where the payee will claim a withholding tax credit
Period-end or annual reconciliation supporting alphalist or summary listings

Document	Primary use	Typical issuer
BIR Form 2307	Creditable withholding on income payments	Withholding agent
BIR Form 2316	Annual compensation / tax withheld on employees	Employer
BIR DAT file	Bulk submission of withholding/alphalist data	Taxpayer or agent

How do you prepare and issue BIR Form 2307? #

Preparing BIR Form 2307 involves identifying the payment type, applying the correct withholding rate, completing all payor and payee details, and distributing copies per BIR requirements. Always use the current BIR form version and follow the latest Revenue Regulations.

Steps:

Confirm withholding applies — verify the payment type and rate under current BIR rules
Complete payor details — TIN, registered name, and address of the withholding agent
Complete payee details — TIN, name, and address of the income recipient
Enter payment and tax amounts — income payment, tax rate, and tax withheld
Sign and distribute — authorized signatory; provide copies to payee and retain for records
Report in summary listings — include in SAWT, alphalist, or DAT submissions where required

Frequently asked questions #

What is BIR Form 2307? #

BIR Form 2307 is the Certificate of Creditable Tax Withheld at Source issued by a withholding agent to a payee as proof that income tax was withheld on a qualifying payment.

Who must issue BIR Form 2307? #

Withholding agents—including employers, government offices, and businesses required to withhold tax on income payments—must issue BIR Form 2307 to payees when creditable withholding applies.

When should BIR Form 2307 be issued? #

BIR Form 2307 should be issued when a payment subject to creditable withholding tax is made, so the payee can claim the withheld amount as a tax credit.

How is BIR Form 2307 different from BIR Form 2316? #

BIR Form 2307 covers creditable tax withheld at source on various income payments, while BIR Form 2316 is the annual Certificate of Compensation Payment/Tax Withheld for employee compensation.

Can a payee use BIR Form 2307 for income tax filing? #

Yes. Payees use BIR Form 2307 to support claims for creditable withholding tax against income tax due on their annual return or applicable quarterly filings.

Summary #

BIR Form 2307 is the Certificate of Creditable Tax Withheld at Source used to document withholding on qualifying income payments. Withholding agents must issue it to payees so withheld tax can be claimed as a credit. For employee compensation, use BIR Form 2316 instead; for bulk reporting, relevant DAT files and summary listings may also apply.