BIR Online Tools for Gyms and Fitness Studios

A gym or fitness studio typically pays freelance instructors on a per-class or revenue-share basis, which falls under the 5%/10% professional/talent-fee bracket, while a genuine studio-space lease falls under the 5% rental bracket instead — and supplement or equipment suppliers are a separate goods-purchase question that triggers withholding only for a BIR-designated Top Withholding Agent. A VAT-registered studio has a further, independent RELIEF SLSP obligation on its purchases.

This guide is part of the site’s BIR Online Tools coverage and builds on BIR Form 2307 for Gyms, Fitness Studios, and Trainers. It covers per-class instructor pay, studio-space leases, supplier purchases, RELIEF SLSP, and a worked multi-instructor example.

Why a gym faces two different withholding questions on the same instructor roster #

A gym’s instructor roster usually mixes two genuinely different arrangements — a trainer paid per class or on a revenue split, and a trainer who leases a defined studio or room for a fixed period — and each one draws a different withholding rate. The distinction isn’t cosmetic: a per-class or per-head arrangement is a professional/talent-fee payment for a service individually rendered, while a true space lease is a rental payment for the continued use of a specific, identifiable area, regardless of how many clients the instructor actually serves in it that month.

Freelance instructors paid per class: the 5%/10% professional/talent-fee bracket #

A personal trainer, Zumba instructor, or yoga teacher paid directly by the gym on a per-class, per-session, or revenue-share basis — with no assigned space of their own — falls under the same 5%/10% individual professional/talent-fee bracket that covers consultants and other individually rendered services. As reproduced across BIR compliance references summarizing Section 2.57.2(A) of RR No. 2-98, as amended by RR No. 11-2018:

Professional fees, talent fees, commissions and any other form of remuneration for the performance of services rendered are subject to expanded withholding tax at the applicable rate depending on the payee’s classification and income level.

— Section 2.57.2(A) of Revenue Regulations No. 2-98, as amended by RR No. 11-2018, as reproduced across BIR compliance references summarizing the provision.

An instructor whose cumulative gross income from the gym has not exceeded ₱3,000,000 for the year, with a sworn declaration on file, is withheld at 5% under ATC WI010; without the declaration, or once the threshold is exceeded, the rate is 10% under WI011.

Instructors who lease a defined room or studio instead #

When an instructor’s arrangement is genuinely structured as exclusive use of a specific, identifiable space for a fixed period — a dedicated Pilates room, a private training studio within the gym — rather than per-class pay, it can instead fall under the 5% rental bracket under Section 2.57.2(B), using ATC WI100 for an individual or WC100 for a corporate studio operator. A gym with several instructors can have some genuinely leasing a room on a flat monthly rate and others paid purely per class out of the gym’s own revenue — each instructor’s actual arrangement, not a blanket policy, decides which bracket applies.

Supplement and equipment suppliers, and RELIEF SLSP #

A gym’s payments to its supplement or equipment suppliers are a goods purchase, not a service payment, and generally trigger no withholding at all unless the gym has been designated a BIR Top Withholding Agent (TWA). Separately, a gym that is itself VAT-registered has an independent obligation to report both its membership/class sales and its purchases on quarterly RELIEF SLSP, with no minimum threshold under RR No. 1-2012. A gym on percentage tax instead of VAT has no RELIEF SLSP duty, though it remains a withholding agent on its instructor and rental payments regardless.

Worked example: FlexFit Studio’s three instructors #

FlexFit Studio pays three freelance instructors on different arrangements in the same month. The figures are fictional.

FlexFit’s bookkeeper compiles all three instructors into one payee listing — name, TIN, amount, and ATC for each — and uploads it to the bulk BIR Form 2307 generator to produce all three certificates in one batch, rather than building each individually. If FlexFit is VAT-registered, its supplement supplier purchases that quarter still go on the RELIEF module’s purchases listing regardless of withholding status.

Pre-filing checklist for a gym or fitness studio #

1. Classify each instructor’s actual arrangement — per-class/revenue-share service versus a genuine defined-space lease — rather than applying one rate to the whole roster.
2. Confirm a sworn declaration is on file for each instructor claiming the lower 5% professional-fee rate, or default to 10%.
3. Confirm whether the gym has a TWA designation before withholding on any supplement or equipment invoice; most independent studios have none.
4. Upload the full instructor listing to the bulk BIR Form 2307 generator each period.
5. If VAT-registered, separately compile the quarter’s sales and purchases for the RELIEF module.

Frequently asked questions #

Does a gym need to withhold tax on a freelance instructor’s pay? #

Yes. A freelance personal trainer, Zumba, or yoga instructor paid directly by the gym on a per-class or revenue-share basis, without a defined assigned space, generally falls under the 5%/10% individual professional/talent-fee bracket under Section 2.57.2(A) of Revenue Regulations No. 2-98, as amended by RR No. 11-2018.

What if an instructor rents a dedicated studio space instead of being paid per class? #

If the arrangement is genuinely structured as a space lease — the instructor pays the gym (or vice versa) a fixed amount for exclusive use of a defined room or area for a set period, regardless of how many clients show up — it can instead fall under the 5% rental bracket under Section 2.57.2(B), using ATC WI100 or WC100. The actual substance of the arrangement, not its label, decides which bracket applies.

Does a gym withhold tax when buying supplements or equipment from suppliers? #

Generally only if the gym has been designated a BIR Top Withholding Agent (TWA). An ordinary gym buying supplements, gear, or equipment from a regular supplier typically withholds nothing on that purchase unless it carries a TWA designation, in which case the 1%/2% TWA goods-and-services rule under RR No. 11-2018 applies.

Does a gym need to file RELIEF SLSP on its purchases? #

Only if it is VAT-registered. A VAT-registered gym or fitness studio must report its membership/class sales and its purchases — equipment, supplements, and any TWA-withheld supplier payments — on quarterly RELIEF SLSP alongside BIR Form 2550Q, regardless of transaction size, since RR No. 1-2012 removed the old peso thresholds. A gym registered under percentage tax instead of VAT has no RELIEF SLSP obligation.

Can BIR Online Tools generate certificates for several freelance instructors from one upload? #

Yes. The bulk BIR Form 2307 generator takes a single payee listing — every freelance instructor, each with their own ATC code depending on their arrangement — and produces every certificate from that one upload, rather than building each certificate individually.

Summary #

A gym or fitness studio can carry two distinct withholding questions on the same instructor roster — per-class pay (5%/10% professional fee) versus a genuine studio lease (5% rental) — plus a separate question on whether supplement and equipment suppliers trigger any withholding at all (generally only if TWA-designated). A VAT-registered studio has a further RELIEF SLSP duty on its purchases. See BIR Form 2307 for Gyms, Fitness Studios, and Trainers for the full instructor-classification detail.