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BIR Form 2307: issuing, collecting and claiming it, and how Odoo produces it
Form 2307 is the certificate that turns tax your customer withheld into a credit you can claim. Chasing them every quarter is one of the most familiar BIR chores in the Philippines. Here is how the certificate works after the EOPT Act, why credits get disallowed, and how Odoo produces 2307s from your vendor bills.
Prepared by the TechNext Philippines Odoo and finance team, Taguig City.
By TechNext · · Updated · 7 min readBIR compliance
Key takeaways
- The payor issues Form 2307 to each payee within 20 days after the quarter closes, or with the payment if the payee asks (RR 2-98 as amended by RR 11-2018).
- Since the EOPT Act, the duty to withhold arises when the income becomes payable, is recorded in the payor's books or is invoiced, whichever comes first (RR 4-2024).
- The payee claims the credit only if the income was declared and the 2307 proves the withholding. A 2307 for government VAT withheld is a VAT credit only.
- Odoo 19 exports 2307 data as XLS from bills and payments. Odoo 20 generates the 2306 and 2307 as PDFs in the BIR format.
Every quarter, finance teams across the Philippines do the same thing: send reminders to customers for missing 2307s, then match each certificate to an invoice before the income tax return is due. A missing certificate is a credit you cannot claim. On the other side, your own suppliers expect their 2307s from you on time. This guide covers both sides and how Odoo helps.
What Form 2307 is
BIR Form 2307 is the Certificate of Creditable Tax Withheld at Source. The current form is the January 2018 version. Its sibling, Form 2306, covers final withholding tax.
- Part I, payee: TIN, name and registered address.
- Part II, payor: TIN, name and address.
- Part III, details: each type of income payment with its ATC, the amount for each month of the quarter, the quarterly total and the tax withheld. A separate block covers business tax withheld, such as VAT withheld by government.
- Signatures: the payor signs, and the payee signs a conforme.
Who issues it, and when
| Situation | When the 2307 is due |
|---|---|
| Expanded withholding tax on your payments | Within 20 days after the close of the quarter (for the quarter ending 31 December 2026, by 20 January 2027) |
| The payee asks for it | At the same time as the payment |
| VAT or percentage tax withheld by government | Issued by the agency as proof of the VAT withheld (RMC 36-2021). Ask for it with each payment; the agency remits the VAT monthly on Form 1600-VT |
The EOPT Act did not change the 20-day rule. It did change when the duty to withhold arises: when the income becomes payable. RR 4-2024 treats that as the date the expense is accrued or recorded in your books, or the date the supplier issues its invoice, whichever is earlier. The old "no withholding, no deduction" rule was repealed when the EOPT Act took effect on 22 January 2024, but the duty to withhold and remit remains.
How the payee uses it
- Income tax credit. The tax withheld is credited against your income tax for the quarter the income was earned or received (RR 2-98 Section 2.58.3). Two conditions: the income is declared in your return, and the 2307 proves the withholding.
- SAWT. Your 2307s are summarised in the SAWT filed with your quarterly and annual income tax returns (1701Q, 1702Q, 1701 or 1702).
- Government VAT withheld. Since 2021, the 5% VAT withheld by government is creditable. The agency issues a 2307 with ATC WV010 (goods) or WV020 (services), and you use it against your VAT return. Under RMC 36-2021, using it against income tax leads to disallowance.
- Your own invoices. Since 16 October 2026, RR 6-2026 requires the creditable withholding tax to appear as a separate item on your invoice, which makes each customer's 2307 easier to match. It does not change when or how the 2307 is issued. See the EOPT invoice guide.
Why 2307 credits get disallowed
- No certificate on file for the income being claimed.
- Wrong or missing details: TIN, name or address errors, or no payor signature.
- Income not declared in the return the credit is claimed in.
- Timing gaps between the quarter on the 2307 and the quarter the income was reported.
- Wrong ATC or rate on the payor's side, which then has to be corrected in its 1601-EQ.
Disallowed withholding credits are a frequent issue in BIR audits. Every one of these causes is easier to catch when the certificate, the invoice and the income sit in the same system.
How Odoo produces the 2307
Odoo builds the certificate from the withholding taxes on your vendor bills, so set-up comes first:
- Every withholding tax carries its ATC on the tax's Philippines tab. Taxes without an ATC are left out of the 2307. See setting up withholding tax and ATC codes.
- Your company has its TIN with branch code and RDO. Each supplier has its TIN in the Tax ID field, and individuals have first, middle and last names.
| Version | How the 2307 is produced |
|---|---|
| Odoo 18 and 19 | Select bills (or a payment) and use Actions > Download BIR 2307 XLS. The file lists the bill lines with withholding, ready to convert to the BIR format. Odoo's documentation notes it does not create the PDF itself. |
| Odoo 20 | Under Accounting > Reporting > Tax Report, the 2306 & 2307 report generates the certificates in the BIR PDF format, grouped by ATC per partner, for a month or a quarter. Several certificates download as one ZIP. The release notes add sending the certificate to the vendor when a bill is paid. |
For the 2307s you receive, attach each certificate to the customer invoice it covers. Separately, Odoo builds the SAWT from customer invoices that carry sales withholding taxes.
A quarterly 2307 routine
- In the first week after quarter-end, generate your outgoing 2307s from Odoo and send them to suppliers before the 20th.
- List customer invoices with withholding and the 2307s still missing, and follow up.
- Attach each received 2307 to its invoice and check the TIN, ATC and amounts.
- Keep VAT 2307s from government separate so they are claimed against VAT, not income tax.
- Build the SAWT and QAP once the certificates are in.
You don't need to hire your own team. A TechNext adviser reviews your withholding flow first, then our team in Taguig City sets up Odoo so the 2307s you issue come from your bills and the ones you receive can be attached to the invoices they cover. See how we set up Odoo for BIR requirements.
Rules change. This article reflects RR 2-98 as amended by RR 11-2018, RR 4-2024, RR 6-2026, RMC 36-2021, the January 2018 Form 2307, and Odoo's 18.0 to 20.0 documentation and release notes, read from the BIR's PDFs and Odoo's own pages as available on 21 October 2026. It is not tax advice: confirm with your accountant or the BIR before you act.
Sources
- BIR Form 2307 (January 2018) and RR 11-2018 (BIR)
- RR 4-2024 digest, RR 6-2026 (BIR) and KPMG's summary
- RA 11976 (EOPT Act)
- RMC 36-2021 (government VAT withholding; copy hosted by Grant Thornton)
- PwC: claiming withholding tax credits
- Odoo documentation: Philippines (18.0), Philippines (19.0), Philippines (20.0), and the Odoo 20 release notes
Common questions
When must I issue Form 2307 to my suppliers?
Issue Form 2307 to your suppliers within 20 days after the close of each quarter, or at the time of payment if the supplier asks, under RR 2-98 as amended by RR 11-2018.
What is the difference between Form 2306 and 2307?
Form 2307 certifies creditable withholding tax, which the payee claims as a credit. Form 2306 certifies final withholding tax.
Can Odoo print the BIR 2307 as a PDF?
In Odoo 20, yes: the 2306 & 2307 report generates the certificates in the BIR PDF format. Odoo 18 and 19 export the data as XLS for conversion.
Can I claim a government VAT 2307 against income tax?
No. Under RMC 36-2021, VAT withheld by government is credited against your VAT. Using it against income tax leads to disallowance.
What is the difference between Form 2307 and Form 2316?
Form 2307 is given by a payor to a supplier or other payee for creditable tax withheld on income payments, within 20 days after each quarter. Form 2316 is the Certificate of Compensation Payment and Tax Withheld that an employer gives each employee, on or before 31 January of the following year, or on the last pay day if employment ends earlier (RR 11-2018).
How is the amount on a 2307 computed?
Each income payment is multiplied by the rate for its ATC, and the 2307 shows the monthly amounts, the quarterly total and the tax withheld. For example, a P100,000 payment to a contractor at 2% means P2,000 withheld. Your accountant confirms which ATC and rate apply.
About TechNext. TechNext Pte. Ltd. is a trusted expert adviser for ERP and compliance: an Odoo Ready Partner headquartered in Singapore, with its main development and consulting hub in Taguig City, Metro Manila and an AI engineering hub in Ho Chi Minh City. Our own experts implement Odoo end to end (discovery, configuration, data migration, training and support), set up with the Philippine (BIR) and Singapore (GST) localisations, for clients in 25+ countries. We are not affiliated with, accredited by or acting for the BIR or any government agency, and we do not file or register on your behalf. About us · Get a quotation
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