Annual Sworn Declaration of Gross Receipts: The BIR's January 15 and January 31 Deadlines
Every January, professionals, consultants, agents, and smaller service companies give their clients a sworn declaration so the right (lower) withholding rate applies, and the businesses paying them report those declarations to the BIR. Here is who files what, the 2027 deadlines, and how to get ready in December.
Under Revenue Regulations No. 11-2018 (January 31, 2018), payees who qualify for a lower expanded withholding tax rate must give each of their payors a sworn declaration of gross receipts/sales (Annex B-1, B-2, or B-3), with a copy of their BIR Certificate of Registration, not later than January 15 of each year, or before the first payment. For 2027, that is Friday, January 15, 2027. Payors then file their own Income Payor/Withholding Agent's Sworn Declaration (Annex C), with the list of payees, with their BIR office on or before January 31. January 31, 2027 is a Sunday, so we recommend filing by Friday, January 29, 2027. Without a declaration, the payor must withhold at the higher rate.
January is already full: books to close, alphalists, the inventory list, permit renewals. The sworn declaration is a one-page document, which is exactly why it gets forgotten. If you miss it, your clients withhold at 10% or 15% instead of 5% or 10% from your very first January payment. If you are the one paying, you could under-withhold or lack the paper trail to support the lower rate. A few minutes in December prevents both.
Who this is for
The requirement works in two directions, and many businesses are on both sides.
| If you are… | You submit | To | Deadline |
|---|---|---|---|
| A non-VAT individual professional, consultant, talent, broker, or agent with gross receipts of ₱3 million or less and several clients | Annex B-1 + copy of COR | Each client (payor) | January 15 or before the first payment |
| An individual payee with only one client (lone payor) | Annex B-2 + copy of COR | Your lone payor | January 15 or before the first payment |
| A corporation, partnership, or general professional partnership whose gross income for the year is estimated at ₱720,000 or less | Annex B-3 (notarized, signed by the president or managing partner) + copy of COR | Each client (payor) | January 15 or before the first payment |
| A business paying professional fees, talent fees, commissions, and similar income to payees who submitted B-1, B-2, or B-3 | Annex C + list of payees | Your RDO, or your Large Taxpayers office | January 31, or within 15 days after the month a new payee submits |
Typical BGB clients this affects
Corporations and partnerships that engage consultants, freelancers, brokers, agents, or non-employee directors; small professional firms and consultancies that bill corporate clients; and sole proprietors in the practice of a profession or earning commissions and talent fees.
Legal basis
- Revenue Regulations No. 11-2018 (January 31, 2018), implementing the TRAIN Law (Republic Act No. 10963) and amending Section 2.57.2 of RR No. 2-98. It sets the two-tier rates on professional fees, talent fees, commissions, and similar income: 5% or 10% for individuals (₱3 million threshold) and 10% or 15% for non-individuals (₱720,000 threshold). The lower rate applies only if the payee submits the sworn declaration with its COR not later than January 15 of each year or before the initial payment.
- Revenue Regulations No. 14-2018 (March 28, 2018), amending Section 2 of RR No. 11-2018. A VAT-registered individual payee is subject to 10% regardless of amount, so the 5% rate (and Annex B-1) is only for non-VAT individuals with gross income of ₱3 million or less.
- Section 2.57.3 of RR No. 2-98, as amended by RR No. 11-2018. An individual payee whose only payor will pay less than ₱250,000 in the year may be exempt from withholding by submitting Annex B-2. If cumulative payments go above ₱250,000, the payor withholds on the excess.
- Annex C (Income Payor/Withholding Agent's Sworn Declaration). The payor states the number of payees who submitted declarations and CORs and files it, with the list of payees, at the BIR office where it is registered on or before January 31 of each year, or 15 days following the month a new payee submits. For lone-payor exemptions, it is filed in two copies, and the received copy serves as proof that the payments are not subject to withholding.
The requirement has been part of the BIR's annual calendar every January since 2018 and remains in the 2026 tax calendars. As of November 3, 2026, we found no later issuance changing these deadlines, annexes, thresholds, or rates; recent amendments to Section 2.57.2 (such as RR No. 24-2025 on top withholding agents) cover other income payments.
2027 deadlines at a glance
| What | Who | Rule | 2027 date |
|---|---|---|---|
| Payee's sworn declaration (B-1, B-2, B-3) + COR | Payee → each payor | Not later than January 15, or before the first payment | Friday, January 15, 2027 |
| Payor's sworn declaration (Annex C) + list of payees | Payor → BIR (RDO or LT office) | On or before January 31 | January 31, 2027 (Sunday; we recommend Friday, January 29) |
| New payee engaged mid-year | Payee → payor | Before the first payment | Before the first payment |
| Annex C for a new payee | Payor → BIR | Within 15 days following the month the payee submitted | Example: received in March → by April 15 |
BIR tax calendars have generally moved deadlines that fall on weekends or holidays to the next working day, which would make the Annex C filing Monday, February 1, 2027. Do not rely on that for a notarized document. Aim to file a few working days early.
What happens if it is missed
- For the payee: the payor must withhold at the higher rate (10% instead of 5% for individuals; 15% instead of 10% for non-individuals). For a lone-payor individual, payments of ₱250,000 or less become subject to withholding. The excess withholding still becomes a tax credit through BIR Form No. 2307, but your cash flow takes the hit all year.
- For the payor: applying the lower rate without a declaration on file can lead to deficiency withholding tax, with surcharge and interest, on audit. Under Section 34(K) of the Tax Code, an expense is deductible only if the required withholding tax was shown to have been paid, so under-withholding can also put the deduction at risk.
- Thresholds still apply. Even with a declaration on file, the higher rate applies once payments exceed ₱3 million (individuals) or ₱720,000 (non-individuals). VAT-registered individuals are withheld at 10% regardless of amount.
RR No. 11-2018 does not set a separate peso fine for a late payee declaration. The main cost is the higher withholding. Late or missing Annex C filings by payors may expose them to penalties under the Tax Code.
How to prepare and submit
If you are the payee (B-1, B-2, or B-3):
- Pick the right annex. B-1 for non-VAT individuals with several payors (VAT-registered individuals are withheld at 10% regardless), B-2 for individuals with one payor, B-3 for corporations and partnerships.
- Fill it in with your registered name, TIN, address, and your declared gross receipts or estimated gross income for 2027.
- Sign under oath and notarize. For B-3, the president or managing partner signs.
- Attach a copy of your BIR Certificate of Registration (Form 2303).
- Send it to each client by January 15, 2027, or before their first payment, and keep proof of receipt.
- Check your first 2307s. If a client still withheld at the higher rate, follow up right away.
If you are the payor (Annex C):
- Request declarations early. Send your suppliers, consultants, and agents a December reminder.
- Review what comes in. Correct annex, current year, notarized, COR attached, threshold not exceeded.
- Update your vendor master so January payments use the right rate.
- Prepare Annex C and the list of payees, signed and notarized.
- File at your RDO or LT office by January 29, 2027, with an SPA or Secretary's Certificate if a representative files.
- Keep the received copy with the payees' declarations for audit.
Check your RDO's practice
Receiving practices for Annex C can differ by RDO, for example on the format of the payee list, the number of copies, or whether a soft copy is requested. Call or check with your RDO ahead of time.
Not to be confused with
Other year-start filings also involve sworn or notarized statements: the sworn statement of gross sales or receipts many LGUs require for business permit renewal (generally by January 20), the year-end inventory list with its notarized certification (January 30), and the SEC General Information Sheet. These have their own rules. This article covers the BIR sworn declaration under RR No. 11-2018.
December checklist
- List your clients (as payee) and your payees (as payor) for 2027.
- Estimate 2027 gross receipts or gross income to confirm you are within ₱3 million or ₱720,000.
- Prepare and notarize your B-1, B-2, or B-3 before the holidays.
- Send declarations with your COR to clients by January 15, 2027.
- Payors: collect, review, and log incoming declarations.
- File Annex C by January 29, 2027, and calendar the 15-day rule for new payees.
How BGB can help
BGB can prepare your sworn declarations, review the declarations your suppliers send you, set the correct withholding rates in your records, and coordinate your Annex C filing with your RDO, alongside your other January requirements. If you are not sure which annex applies to you, or whether you need to file at all, we can review that too. Call us at (02) 8631-8618 or connect with BGB.
Frequently asked questions
What is the annual sworn declaration of gross receipts?
It is a sworn statement, in the format prescribed by Revenue Regulations No. 11-2018, that a payee gives to the businesses paying it. It declares that the payee's gross receipts or gross income for the year will not exceed a threshold, so the payor may withhold the lower expanded withholding tax rate (or, for certain lone-payor individuals, none at all). The payor then reports the declarations it received to the BIR using its own sworn declaration (Annex C).
When is the deadline for 2027?
Payees submit their declaration (Annex B-1, B-2, or B-3) with a copy of their BIR Certificate of Registration to each payor not later than January 15, 2027 (a Friday), or before the first payment if the engagement starts later. Payors file Annex C with the list of payees with their BIR office on or before January 31, 2027. January 31, 2027 is a Sunday, so the practical filing day is usually Monday, February 1, 2027, but we recommend filing by Friday, January 29, 2027.
Do we need to submit a new declaration every year?
Yes. RR No. 11-2018 requires submission not later than January 15 of each year. A declaration you gave in January 2026 covers 2026 only. Send a fresh one for 2027.
What happens if the payee does not submit a sworn declaration?
The payor must apply the higher rate: 10% instead of 5% for individual payees, and 15% instead of 10% for non-individual payees. The higher rate also applies once payments exceed the threshold (₱3 million for individuals, ₱720,000 for non-individuals), even if a declaration was submitted. VAT-registered individual payees are always withheld at 10%. Lone-payor individuals who do not submit Annex B-2 lose the exemption for payments of ₱250,000 or less.
We are a corporation paying consultants and agents. What do we file?
Collect each payee's declaration and COR, apply the correct rate, then file your Income Payor/Withholding Agent's Sworn Declaration (Annex C) with the list of payees at your RDO, or Large Taxpayers office if applicable, by January 31. For payees who submit later in the year, file within 15 days after the month the new declaration was received.
Is this the same as the 8% income tax option?
No. The 8% option is an income tax election that a qualified self-employed individual or professional signifies with the BIR, usually in the first quarterly income tax return or on registration. The sworn declaration under RR No. 11-2018 is about the expanded withholding tax rate your clients apply. Many professionals need to handle both.
Official sources & references
- Revenue Regulations No. 11-2018 (January 31, 2018), amending RR No. 2-98 to implement the TRAIN Law on withholding of income tax, Sections 2.57.2 and 2.57.3 and Annexes B-1, B-2, B-3, and C: BIR (PDF)
- Revenue Regulations No. 14-2018 (March 28, 2018), amending Section 2 of RR No. 11-2018 (10% for VAT-registered individual payees regardless of amount): BIR (PDF)
- Republic Act No. 10963 (TRAIN Law)
- National Internal Revenue Code, Section 34(K) (deductibility subject to withholding)
- PwC Philippines, January 2026 tax calendar (January 15 sworn declaration submission)
- Bureau of Internal Revenue: bir.gov.ph
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