When to use BIR Form 2306 and 2307?

When to use BIR Form 2306 and 2307?

When to use BIR Form 2306 and 2307?

BIR Form No. 2306 (Certificate of Final Tax Withheld at Source) shall no longer be issued for this purpose. The BIR Form 2307 shall be used by the VAT taxpayers as proof of claiming VAT credit in monthly and quarterly VAT declarations.

Is 2307 required?

2307 is important during filing of the quarterly income tax return or annual income tax return in the Philippines because this will serve as a proof of withholding and required to be attached to the income tax return. Without the creditable withholding tax certificate or BIR Form No.

When should I apply for withholding tax?

The form must be submitted on the 10th calendar date after the month the tax has been withheld. EFPS users (i.e. those who pay their taxes online) can file up to the 15th of the month.

What is the use of BIR Form 2307?

What is this form? BIR Form 2307, or Certificate of Creditable Tax Withheld at Source is a tax certificate which needs to be accomplished by the withholding agent which shows the recipient of any income subject to expanded withholding tax.

How do I calculate 2307 withholding?

With Creditable Withholding Tax (BIR FORM 2307) Compute the amount of withholding tax by multiplying the amount of gross sales by the applicable withholding tax rate. Compute the net amount to be collected by deducting the amount of withholding tax from the amount of sales.

Does creditable withholding tax expire?

In filing a claim for refund or credit of creditable withholding tax, compliance with the following must be met: The claim for refund must be filed within the two-year prescriptive period.

How do you fill up a BIR Form 2307?

How to fill out the BIR form 2307

  1. Download the Excel or PDF file from the BIR website.
  2. Fill out the following information: Part 1 – Payee Information. Part 2 – Payer Information. Details of Monthly Income Payments and Taxes Withheld. Printed Name of the Payor/Authorized Representative.

Who are required to file BIR form 2307?

Who needs to file BIR Form 2307? In most instances, freelancers are the ones who file the form. However, part-time freelancers and employers that hire project-based employees or freelance employees have to file the form as well.

How do I submit BIR form 2307?

Taxpayers have the option to submit the required BIR Form No. 2307 in either scanned or hard copy together with the quarterly income tax return (“ITR”) due for submission last 30 April 2015. However, for quarterly filings with deadline falling beyond 30 April 2015, BIR Form No. 2307 must be submitted in scanned copies.

Who needs to withhold EWT?

Payments of Professional fees (CPA’s, Lawyers, Engineers, etc.) For certain companies who are designated by the BIR as “Top Withholding Agents” (TWAs)and companies who are under the Taxpayer Account Management Program (TAMP), certain withholding taxes are mandatory.