Since Form 2307 functions as income tax credits, it is imperative that the payee takes note of it when accomplishing Income Tax Returns as it is legit proof of the withholding tax. Otherwise, you will not be permitted to claim your tax credit.
Make sure to submit Form 2307 along with the Quarterly/Annual Income Tax Return to ensure that the amount of withholding tax is properly accepted as a tax credit on the income tax liability.
If you are self-employed, you will be familiar with the BIR Form 2307 as this must be attached to your 1701 or 1701Q form; its primary goal is to ensure that your tax liability is recorded.
Who should file BIR Form 2307?
Most of the time, freelancers are the ones who file this form. Part-time freelancers and business owners who hire project-based or freelance employees are also required to file the form.
This form must be submitted along with the quarterly (1701Q) and annual Income Tax Return (1701) for employees, as well as the BIR Forms 1702/1702Q for companies and businesses.
How to encode 2307 that you received
To start generating 2307, click the sidebar menu. Select Tax Forms then Creditable Certificates.
To begin adding transactions, click the (+) plus icon located on the upper right part of the screen.
📌 BIR form 2307, simply referred to as Certificate of Creditable Tax Withheld At Source are certificates that show income subjected to the expanded withholding tax which is paid by the withholding agent.
📌 In JuanTax, these kinds of certificates can be done for VAT and can be seen in Schedule 6 and Percentage tax (as seen in Schedule 1).
STEP 1: After clicking the Add Transaction icon (+), a pop-up window appears. Select the Date of Transaction of your creditable certificate.
STEP 2: Search or Add a Customer. If the customer is not currently saved on your contact list, add them as a new contact instead.
STEP 3: Enter Tax Code and Amount and ATC, then click Done.
That's it! Your credible certificate has now been added to your certificate list.
How to create 2306 or 2307 to be given to Suppliers/Vendors
1. Enter the Purchase entry using the appropriate EWT ATC
2. After encoding your purchase entries with the EWT code, click the left sidebar menu > Tax Forms > Withholding Tax > 2307.
All purchase entries encoded with the EWT code will be automatically reflected in the Transactions Tab. Tick the checkbox next to the transactions or vendors for which you want to generate 2307, then click the (+) button to generate.
3. The generated 2307 will be saved to the Generated Reports tab. You can tick the transactions per vendor, and you can also export or email them to your suppliers.
You can also click on each generated 2307 to see its details and go to the Report tab to view the copy of the certificate. Users can also delete the generated 2307 by clicking the Trash icon.
To perform any of the following actions, click the Options button:
Send 2307 as an email to the supplier
Follow this guide to add your e-signature to the 2307 Report: Adding Signature Templates to Reports