BIR 2306 Form – Fill Out and Use This PDF

BIR 2306 Form PDF Details

The BIR Form 2306, officially known as the Certificate of Final Tax Withheld At Source, plays a pivotal role in the Philippines taxation system. Issued by the Bureau of Internal Revenue (BIR), it documents income payments subject to final withholding tax and the exact tax withheld. Key sections include information about the income recipient (payee) and the withholding agent or payor, including their Tax Identification Numbers (TINs), names, and registered addresses. The form details the nature of income payments, the applicable alphanumeric tax codes (ATCs), and the total amount paid versus the tax withheld. This document is a legal declaration made under the penalties of perjury, underscoring its importance for accurate tax compliance.

Who Must Issue the BIR Form 2306

Withholding agents are required to issue the BIR Form 2306 to payees. These include employers, corporations, partnerships, associations, and other entities that make income payments subject to final withholding tax. Common examples include companies paying dividends to shareholders, banks paying interest income, and businesses paying royalties, rentals, or professional fees. Every withholding agent must furnish the payee with a signed copy of the BIR Form 2306 at the time the income payment is made or credited, as proof of the tax withheld.

When to File and Issue the BIR 2306 Form

The BIR Form 2306 must be issued to the payee on the date the income payment is made or credited, whichever comes first. Withholding agents must then remit the withheld tax to the BIR within the prescribed deadline. For most final withholding tax transactions, the remittance deadline falls on the 10th day of the following month for manual filers, or the 15th day for electronic filers. Failure to issue the certificate on time or issuing an incorrect certificate may result in surcharges and penalties under Philippine tax law.

Key ATC Codes on the BIR 2306 Form

Alphanumeric Tax Codes (ATCs) identify the type of income and the applicable final withholding tax rate. Common ATCs on BIR Form 2306 include WI010 for interest income from deposits, WI011 for royalties, WI012 for dividends, WI013 for prizes and winnings above 10,000 pesos, and WI014 for payments to a non-resident person not engaged in trade or business. Each ATC is paired with a specific tax rate ranging from 6% to 30%, depending on the income type and the tax status of the payee.

Related BIR Forms for Withholding Agents

Depending on your tax obligations, you may also need to work with related forms. The BIR Form 2307 is the Certificate of Creditable Tax Withheld At Source, used for expanded withholding tax. The BIR Form 2316 is issued to employees as a Certificate of Compensation Payment. For remittance of final taxes withheld, use BIR Form 1601-F (Monthly Remittance Return of Final Income Taxes Withheld). For quarterly income tax returns, refer to the BIR 1701Q form. You can also access the BIR Form 0605 for tax payments.