BIR 2307 vs 2306: creditable vs final tax certificate
Both are certificates a payor gives a payee after withholding tax. The difference is what the payee can do with it. A 2307 certifies *creditable* tax: the payee subtracts it from their own income tax. A 2306 certifies *final* tax: the withholding is the payee's tax on that income, and there is nothing to credit. This guide is for a bookkeeper deciding which one to issue, or a payee wondering which one they received. For a case that is not clear, ask your RDO or a CPA.
The difference in one table
· BIR Form 2307 · BIR Form 2306; Name · Certificate of Creditable Tax Withheld at Source · Certificate of Final Tax Withheld at Source (RMC 29-2021); Kind of tax · Creditable: credited against the payee's income tax for the year (NIRC section 57(B)) · Final: withheld on specified items of income (NIRC section 57(A)); Issued by · The payor (withholding agent) · The payor (withholding agent); Given to · The payee · The payee; Who uses it · The payee, as a tax credit on their return · The payee keeps it as a record; there is no credit to claim; Typical payments · Professional fees, rent, contractors, supplier payments (RR 11-2018, section 2.57.2) · Items listed in section 2.57.1, such as bank interest and dividends (RR 11-2018, section 2.57.1)
The regulation names both: the prescribed form is the 2307 for creditable withholding tax and the 2306 for final withholding tax, showing the monthly payments, the quarterly total and the tax withheld (RR 11-2018, section 2.58(B)).
When each is due
The regulation says to furnish the statement within 20 days from the close of the quarter, or with the payment if the payee asks (RR 11-2018, section 2.58(B)). The Tax Code itself words it differently for final taxes: on or before January 31 of the next year (NIRC section 58(B)). If you are unsure which date applies to a payment, ask your RDO.
Which one do I issue?
1. Find the kind of payment. Is it one of the creditable items (professional fees, rent, contractors, goods or services under the top-withholding-agent or government rule), or a final-tax item? 2. If creditable, issue a BIR Form 2307 with the right ATC (ATC codes). 3. If final, issue a BIR Form 2306. 4. Never send a 2307 for a final-tax payment, or the reverse. The payee could claim a credit they are not entitled to.
For the payee
Only the 2307 goes into your credit line. On the 2307, check your TIN, name and the ATC against the payment, and sign the Conforme line (BIR Form 2307). See how to fill out BIR Form 2307 for where it goes on the return, and a filled sample.
Same signing rules
RMC 29-2021 covers both forms: the withholding agent may e-sign, the payee's signature is still required, and a repeat copy is marked RE-PRINT (RMC 29-2021; see e-signing the 2307). For many 2307s at once, see from Excel.
Questions
Is the 2307 the same as the 2306? No. The 2307 is for creditable tax the payee can claim; the 2306 is for final tax with no credit (RR 11-2018, section 2.58(B)).
Can I claim a 2306 on my income tax return? The Tax Code treats final withholding as the tax on that income, while creditable tax is credited against income tax liability (NIRC section 57). Ask your RDO how your income is reported.
Which form do I give a supplier I paid rent to? Rent for property used in business is a creditable item, so a 2307 (RR 11-2018, section 2.57.2(B)).
Is the 2316 the same as either one? No. The 2316 is the employee's certificate for compensation and tax withheld (RMC 29-2021).
Last checked 2026-10-16. Not affiliated with BIR, SSS, PhilHealth, Pag-IBIG or any government agency.