BIR Form 2307 is the Certificate of Creditable Tax Withheld at Source. A client who withholds tax from your fee gives it to you within 20 days after the quarter ends, and you claim the tax shown on it as a credit against your own income tax, so it isn't paid twice.
If an agency, brand or company in the Philippines pays you and takes a slice off for tax, Form 2307 is your receipt for that slice. Lose it, or never ask for it, and you can end up paying the same tax again when you file. For freelancers and creators that's real money, so it's worth understanding.
What the form proves
Under the BIR's withholding rules, a payor who withholds creditable tax has to give the payee a statement in triplicate within 20 days of the end of each quarter. The prescribed form is BIR Form 2307 for creditable withholding tax (Form 2306 is for final withholding tax, which is different). It shows the monthly payments, the quarter's total and the tax withheld.
Creditable is the key word. The tax on a 2307 isn't the end of the story; it's a payment on account of your income tax, and you deduct it when you file.
How much a client withholds from you
| Your situation (individual payee) | Expanded withholding on professional or talent fees |
|---|---|
| Gross income for the year won't exceed 3 million pesos and you gave your sworn declaration | 5% |
| Gross income is more than 3 million pesos | 10% |
| You didn't give the payor your sworn declaration | The higher rate, 10% |
The BIR's rules on talent fees are broad. They cover entertainers and other recipients of talent fees, including amounts paid for the use of your name or picture in print, broadcast or other media for advertising. That's close to how many influencer deals work, which is why brands often withhold.
The January 15 paper most people forget
If your gross receipts for the year won't exceed 3 million pesos, you're supposed to send each payor a sworn declaration of your gross receipts (Annex B-1) with a copy of your Certificate of Registration, by January 15 of each year or before their first payment to you. Without it, the payor applies the higher rate. Sending one email in January can halve what's withheld.
There's also a rule for people with just one payor. If a lone payor will pay you less than 250,000 pesos in the year and you give them a sworn declaration (Annex B-2), they may not need to withhold at all. Once their payments pass 250,000 pesos, they withhold on the excess.
Claiming the tax back on your returns
- Collect every 2307 each quarter. Chase clients who miss the 20 day window.
- Check your TIN, name, the period and the amounts. A wrong TIN means the credit may not match you.
- When you file 1701Q, 1701, 1701A or 2551Q, list the credits in the Summary Alphalist of Withholding Tax (SAWT) through eSubmission.
- Deduct the total from the tax due on your return.
- Keep the originals with your books.
Your client has their own side to do: they remit what they withheld on 1601EQ with a Quarterly Alphalist of Payees, and file the annual 1604E by March 1. If your credit is ever questioned, it helps that their filing lists you.
Do platforms like YouTube give you a 2307?
Don't expect one. A 2307 is the certificate a payor issues after withholding Philippine creditable tax, so it comes from Philippine clients and agencies that withhold, not from foreign platforms sending ad revenue. That income still counts: the BIR's RMC No. 97-2021 lists YouTube ad revenue, channel memberships, Super Chat and YouTube Premium revenue, plus brand-paid posts and affiliate income, as taxable business income for influencers. You simply declare it without a credit.
When a client won't send it
That's more common than it should be, especially with small agencies. Here's what I'd do, in order:
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
- Ask in writing at the end of each quarter, quoting the 20 day rule from the BIR's withholding regulations.
- Send your TIN, registered name and address so there's no excuse for errors on the form.
- If the deadline passes, follow up with the accounts team rather than your day-to-day contact.
- Keep your own record of every payment, the gross amount and what was deducted, so you can reconcile when the certificate arrives.
Don't claim a credit you can't support with a 2307. If a client keeps refusing, factor it into whether you work with them again, because the tax they withheld is your money sitting in their paperwork.
Quick reference
| Question | Answer |
|---|---|
| Who issues it? | The payor who withheld the tax |
| When? | Within 20 days after the close of the quarter |
| What rate for most freelancers? | 5% with a sworn declaration, 10% without or above 3 million pesos |
| Where do you use it? | SAWT, attached when you file 1701Q, 1701, 1701A or 2551Q |
My verdict
Treat every 2307 like cash, because that's what it is. Send your sworn declaration in early January, ask for the certificates every quarter, and claim them in your SAWT. If you're new to filing, my tax tips for the self-employed and the guide to declaring side hustle income will help you set up a simple routine.
Related: freelance: guidelines and how to pitch.
Frequently asked questions
What is BIR Form 2307 used for?
It certifies creditable tax a payor withheld from your income. You use it to claim that tax as a credit on your quarterly and annual returns.
When should a client give me Form 2307?
Within 20 days from the close of each quarter, in triplicate, under the BIR's withholding rules.
Why was 10% withheld instead of 5%?
The higher rate applies when you didn't give the payor your sworn declaration of gross receipts, or your income passes 3 million pesos.
How do I claim the tax on my 2307?
List it in the Summary Alphalist of Withholding Tax through eSubmission when you file 1701Q, 1701, 1701A or 2551Q, and deduct it from the tax due.
Is Form 2307 the same as 2306?
No. 2307 is for creditable withholding tax, which you can claim against your income tax. 2306 is for final withholding tax.
