Marketplace 2307s: collect and claim
Shopee, Lazada and TikTok Shop withhold 0.5% of your sales before VAT. Here's where that money goes, the 2307 that proves it, and how to subtract it from your income tax.
← 5.1 Withholding in both directions₱6,000 went somewhere
In July to September 2026, Shopee, Lazada and TikTok Shop withheld ₱6,000 from Kuting Kitchen's payouts. Carla never saw that money.
It isn't lost. It's sitting with the Bureau of Internal Revenue (BIR) as income tax Kuting Kitchen has already paid. This section is about getting it counted.
The rule: 0.5% of what they remit
Since 15 July 2024, e-marketplaces withhold creditable income tax on what they remit to sellers. RR 16-2023 set it as 1% of half the gross remittance; RR 5-2025 (27 February 2025) restated it as 0.5% of the gross remittance. Same amount either way.
What it's 0.5% of
The base is your sales before VAT. Returns and discounts, separately billed shipping, the VAT itself and the platform's own fees are left out.
Kuting Kitchen sold ₱1,200,000 before VAT in Q3: ₱700,000 on Shopee, ₱300,000 on Lazada, ₱200,000 on TikTok Shop. 0.5% of each: ₱3,500 + ₱1,500 + ₱1,000 = ₱6,000.
One 2307 per platform, per quarter
Each marketplace gives you a BIR Form 2307, the Certificate of Creditable Tax Withheld at Source. Item 1 is the quarter it covers. Withholding agents must issue it by the 20th day after the quarter: for Q3, 20 October.
Each platform makes its 2307s available in its own way, often through the seller centre. If one is missing, ask that platform's seller support.
Read it, then check it
| Part I · Payee | You. Your Taxpayer Identification Number (TIN) and name must match your 2303. |
|---|---|
| Part II · Payor | The platform that withheld. |
| Part III | Each month's sales: they should add up to your sales journal. Tax withheld: 0.5% of the total. |
The code in Part III is the alphanumeric tax code (ATC): WC820 for a corporation selling on an e-marketplace. A wrong TIN means BIR can't match the credit to you, so ask the platform to correct it.
Claim it on the 1702Q
The 1702Q, Kuting Kitchen's quarterly income tax return, has a line for creditable tax withheld per BIR Form 2307 this quarter: Schedule 4, item 5, ₱6,000.
Q3 income tax is ₱32,400. Less the ₱6,000, Kuting Kitchen pays ₱26,400. The return counts from January, so item 4 carries the earlier quarters' 2307s. The Q3 return is due 1 December 2026 (29 November is a Sunday). Lesson 7 walks through the whole return.
List them in the SAWT
Whenever you claim 2307 credits, you also file a SAWT, the Summary Alphalist of Withholding Taxes: one line per 2307. It's a data file sent through BIR's eSubmission (or eFPS, the Electronic Filing and Payment System) the same day as the return.
Keep the 2307s themselves: they go with the annual return through eAFS, and they're your proof.
The ₱500,000 exclusion
Under RR 16-2023, a seller whose gross remittances last year were ₱500,000 or less isn't withheld on until this year's pass ₱500,000. The seller claims it with a sworn declaration to the platform (RMC 8-2024).
Kuting Kitchen, at about ₱4.8 million a year, is far past it. Smaller sellers: confirm with your Revenue District Office (RDO) that the exclusion still applies under RR 5-2025 before relying on it.
Pop Quiz: Liza's quarter
Liza sold ₱2 million last year, so she's withheld on. This quarter her sales before VAT were ₱340,000 on Shopee and ₱160,000 on Lazada. Her income tax for the quarter is ₱9,000.
Every quarter
Collect a 2307 from every platform. Check it against your books. List it in the SAWT. Subtract it on your income tax return.
A missed 2307 is tax you paid twice.
General information for learning, not tax advice. Kuting Kitchen, Liza and their numbers are fictional; the 2307 shown is BIR's form filled in with sample figures, and the payor is a placeholder, not Shopee's real details. Whether the ₱500,000 exclusion applies to you is for your RDO or accountant to confirm.
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