Whether you’re a business owner, project-based employee, or freelancer, one of the many BIR Forms you will encounter in is the BIR Form 2307. It is important since you are required to attach it with your Form 1701. Although this form will make the computations of tax easier, its primary function is to ascertain you record and stay updated with your tax liabilities.
If you’re not sure what to do, seeking tax services in Manila from a reputable firm will help. You can also read this short guide, allowing you to stay informed about your finances. Learn more about the BIR Form 2307 here to ascertain what it is and how to file it correctly.
Why do you need to file BIR Form 2307?
The BIR Form 2307 is also known as the Certificate of Credible Tax Withheld at Source. This is used to present the income of an individual or business entity that is subject to Expanded Withholding Tax (EWT) paid by the withholding agent. The form lies under assets in the accounting books. It is considered an income tax prepayment since the deductions are from the income tax dues of the taxpayer (quarterly and annual income tax return).
The BIR Form 2307 is important to taxpayers since it provides them credible proof of their withholding tax. Taxpayers cannot claim their tax credit without the Certificate of Credible Tax Withheld at Source or BIR Form 2307. It is important to remember that employees who are taxpayers, should request their employers to provide the BIR Form 2307. If you’re not sure about what to do, asking for help from a reputable firm offering tax and accounting services in the Philippines will help.
Who needs to file BIR Form 2307?
Most of the time, self-employed freelancers or part-time freelancers are the people who need to file the form. However, even a business owner could be an issuer or recipient of this form. There are employers who hire project-based employees that need to file the BIR Form 2307 which needs to be submitted along with the quarterly and annual Income Tax Return or the BIR Form 1701 for employees, and BIR Form 1702 for companies and corporations.
After filing the form, the amount of withholding tax will be accepted as a tax credit on the quarter or year it was earned. If you need further explanation, call an expert who offers tax and audit services in Pasig.
When should you file the BIR Form 2307?
Filing of the BIR Form 2307 is simple and not as complicated compared to the other forms. What you need to be aware of is that there are some items that are subject to withholding taxes. Some examples are professional fees, talent, fees, government cash payments to suppliers, payments to beneficiaries, and political contributions.
It was mentioned already that the BIR Form 2307 is filed together with other forms. The following are the forms that the BIR Form 2307 is usually attached with:
Income Tax Returns
- Income Tax Returns need the BIR Form 2307 for quarterly and annual filing of the income tax return. The quarterly income tax returns should be filed on or before the 15th of May, August, and November. The deadline for the annual income tax return is on or before April 15.
Expanded Withholding Tax (EWT)
- This should be issued on or before the 20th day of the month following the end of the quarter. It should be provided along with the income payment upon the request of the taxpayer. The BIR Form 1702q needs to be filed on or before the 60th day following the closing of the three quarters of the taxable year and on or before the 15th day of April following the closing of the taxpayer’s taxable year.
Percentage Taxes
- It should be issued within 25 days after the end of each taxable quarter.
VAT Withholding
- It must be issued on or before the 20th day following the end of each month.
Stay Tax Compliant
The BIR Form 2307 is easier to understand compared to other forms if you know the items that are subject to withholding taxes. Freelancers, part-time freelancers, and employers who hire project-based employees should know how to file the BIR Form 2307.
Through this, taxpayers will be able to have access to their tax credits and even make the computations of tax easier. If you need help filling out and processing your BIR Form 2307, call our team because we offer expert accounting services in the Philippines. We pride ourselves for being a one-stop shop.
Apart from bookkeeping and accounting, we also provide audit, business registration, tax compliance, management consultancy, and payroll services to both domestic and foreign clients. Give our team a call and take advantage of our free 30-minute consultation. Filing your taxes is easy when you know have guidance on what to do.
