What is a 2307?
BIR Form 2307, the Certificate of Creditable Tax Withheld at Source, is proof that someone who paid you kept part of the payment as tax and sent it to the BIR for you. That amount counts as tax you’ve already paid, so you can subtract it from the income tax you owe.
Who gives you one?
- Companies that hire you. Many businesses withhold a percentage of professional fees (often 5% or 10%, depending on your situation and the sworn declaration you give them).
- Online marketplaces. Platforms like Shopee, Lazada and TikTok Shop may withhold tax from seller payouts under BIR rules for e-marketplaces (RR 16-2023), unless you’ve given them the sworn declaration that exempts you. Check your platform’s seller center.
The payer should give you a 2307 for each quarter. If you don’t get one, ask — without it you can’t claim the credit.
How to track it in Deskless Books
- When you record the income, turn on “withheld by client” and enter the tax withheld.
- When the 2307 arrives, attach a photo or scan to the record.
- Deskless Books totals your credits per quarter and shows them in your tax view. If you buy a Prepared Tax Form, they’re filled in for you.
Keep the originals
Keep your 2307s with your books. You may need to submit them with your return.
Do you withhold from others?
If you pay suppliers or contractors and withhold tax from them, the Advance plan tracks it and prepares the 2307s you give them.