It’s important to understand ATC and how they affect your taxes. The List of BIR ATC (Alphanumeric Tax Codes) helps you figure out the right withholding tax rates and forms you need. Here’s a simple guide to help you understand it better.
What is BIR’s ATC (Alphanumeric Tax Code)
An ATC (Alphanumeric Tax Code) is a code used by the Bureau of Internal Revenue (BIR) to classify businesses based on their activities. It also determines the tax rate to be withheld from your income, based on your line of business. For example, if you’re a doctor, consultant, or business owner, the list of ATC helps BIR apply the appropriate tax rates.
How to Figure Out Your ATC
When paying employees or suppliers, you may need to withhold a portion of their pay for taxes. The ATC (Alphanumeric Tax Code) determines how much tax should be withheld. Understanding your ATC helps you calculate the correct amount to withhold.
Below is a selection of ATCs, their descriptions, and corresponding tax rates:
What Forms Do You Need When Taxes Are Withheld from Your Income?
If someone has already taken taxes out of your income, they should give you certain forms:
- BIR Form 2307 – This form shows how much tax has been withheld from your income.
- BIR Form 2316 – If you’re an employee, this form shows all the tax withheld from your salary for the entire year.
Should You Include Withheld Taxes on Your Tax Forms?
If you’re a business owner or a freelance – yes, if taxes have been withheld from your income, you need to report them when you file your income taxes. Here’s where you should include them:
Quarterly Filing
- BIR Form 1701Q
- BIR Form 1702Q
Annual Filing
- BIR Form 1702RT
- BIR Form 1701
- BIR Form 1701A
💡Make sure to report any taxes that have already been withheld from your income on these forms.
How to Claim Tax Credits
As a business owner or a freelancer, if taxes have been withheld from your income, you might be able to get that money back as a tax credit. This means you could pay less in taxes or even get a refund! Here’s how to do it:
- Check Your BIR Form 2307 – This form shows how much tax has been withheld from you.
- File Your Tax Forms – When you file your taxes (like BIR Form 1701 or 1702), make sure to include the amount from your BIR Form 2307. This can help reduce the taxes you owe.
- Get Your Tax Credit – The tax credit can lower the amount you owe or even get you a refund if you’ve overpaid.
If You’re Withholding Taxes from Your Suppliers
If you’re withholding taxes from your suppliers or contractors (like freelancers or service providers), make sure you’re using the correct BIR forms:
- BIR Form 1601-EQ: Used for filing the quarterly expanded withholding taxes you collected from your suppliers.
- BIR Form 0619-E: Used for the monthly filing of expanded withholding tax.
- BIR Form 2307: Give this to your suppliers. It shows how much tax you withheld from them and allows them to claim it as a tax credit.
💡 If you’re also withholding tax from employees, here’s what you’ll need:
- BIR Form 1601-C: For monthly withholding tax on compensation (salaries).
- BIR Form 1604-C: Annual report summarizing all taxes withheld from employees for the year.
- BIR Form 2316: Give this to your employees. It shows how much tax you withheld from their salary.
Understanding ATC codes, withholding taxes, and the right forms can feel overwhelming—but it doesn’t have to be. Whether you’re a business owner, freelancer, or just figuring things out, knowing how these work helps you stay compliant and even claim tax credits. And the best part? You don’t have to do it all alone. With Taxumo, managing your taxes is easier and faster—just a click, and you’re done.