Withholding on rent and suppliers
When you pay rent, you withhold 5% and pay it to BIR for your landlord. Here's one quarter of it: the monthly 0619-E, the quarterly 1601-EQ and the landlord's 2307.
← 5.2 Marketplace 2307s: collect and claim₱30,000 a month
Kuting Kitchen rents its packing space for ₱30,000 a month. The landlord, an individual, isn't VAT-registered, so that's the whole bill.
From July to September 2026 Carla paid rent three times. Each time she sent ₱28,500, not ₱30,000.
You're a withholding agent
Kuting Kitchen's Certificate of Registration (BIR Form 2303) lists expanded withholding. That makes it a withholding agent: when it pays certain kinds of income, it withholds part and pays it to the Bureau of Internal Revenue (BIR) for the payee.
Rent is one. Fees to professionals and some agents and contractors are others. Each kind has its own alphanumeric tax code (ATC) and rate, listed on BIR's forms. Rent paid to an individual is WI100, 5%; check any other payment's rate with your accountant before you pay it.
Each month: withhold and record
5% of ₱30,000 is ₱1,500. The landlord gets ₱28,500.
In the books, rent expense is the full ₱30,000. Cash goes down ₱28,500, and withholding tax payable goes up ₱1,500: money Kuting Kitchen owes BIR.
Months 1 and 2: the 0619-E
For the first two months of each quarter, the tax is paid on the 0619-E by the 10th of the next month. July's ₱1,500 is due 10 August 2026; August's, 10 September. eFPS (Electronic Filing and Payment System) filers file on the 11th to 15th, by group.
The form carries one amount: item 14, ₱1,500. Does it name the landlord? No. The 0619-E only pays the tax; who it was withheld from goes on the quarterly list and the 2307.
Month 3: the 1601-EQ
There's no 0619-E for the third month. The quarterly 1601-EQ, due the last day of the month after the quarter, reports the whole quarter and pays what's left.
| Item 13 | WI100: ₱90,000 × 5% = ₱4,500 |
| Items 20–21 | Paid on the 0619-Es: ₱1,500 + ₱1,500 |
| Item 26 | Still due: ₱1,500 |
For Q3 2026 the due date, 31 October, is a Saturday, so it moves to the next working day. Attach the Quarterly Alphalist of Payees (QAP), the list of who was withheld from.
The landlord's 2307
By the 20th day after the quarter, Kuting Kitchen gives the landlord a 2307: ₱30,000 for each month, ₱90,000 in all, ₱4,500 withheld. For Q3 that's 20 October 2026.
It's the same certificate Shopee gives Kuting Kitchen, with the roles swapped: the landlord is the payee in Part I, Kuting Kitchen the payor in Part II. The landlord subtracts the ₱4,500 from their own income tax.
What about suppliers?
Kuting Kitchen pays its cat-food supplier ₱6,720 in full. On BIR's list of codes, withholding on ordinary purchases of goods and services appears under top withholding agents: businesses BIR has named as such. Kuting Kitchen isn't one.
If BIR notifies you that you are, or you hire a professional or contractor, confirm with your accountant or Revenue District Office (RDO) what to withhold before the first payment.
Who, how much, when
| What | Kuting Kitchen, Q3 2026 | When |
|---|---|---|
| Withhold | 5% of rent, ₱1,500 a month | Each payment |
| 0619-E | ₱1,500 for July, ₱1,500 for August | 10th of next month |
| 2307 to payee | ₱90,000 rent, ₱4,500 withheld | 20th after the quarter |
| 1601-EQ + QAP | ₱4,500 − ₱3,000 = ₱1,500 | Last day of month after the quarter |
Pop Quiz: Fe's quarter
Fe's shop pays ₱24,000 rent a month to a landlord who isn't VAT-registered, and withholds 5%. She paid the 0619-E for the first two months on time.
General information for learning, not tax advice. Kuting Kitchen, its landlord and Fe are fictional; the forms shown are BIR's, filled in with sample figures. Withholding rates differ by payment and payee and have been amended over the years: confirm the current rate for each one with your accountant or RDO.
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