The Bureau of Internal Revenue (BIR) has clarified that jackpot prizes from casinos and other gambling activities are subject to at least a 20-percent final withholding tax amid the continued expansion of the country’s gaming industry.
The clarification was issued through Revenue Memorandum Circular No. 57-2026, published on 26 May.
“Jackpot prizes derived from casino and other gambling activities, when falling within the scope of existing tax laws, are considered ‘winnings’ and are therefore subject to final withholding tax,” the circular read.
Under the rules, resident taxpayers will be subject to a 20 percent final withholding tax on winnings. Meanwhile, non-resident aliens not engaged in trade or business in the Philippines will face a 25 percent final withholding tax on jackpot prizes and other gambling winnings.
The BIR said the tax base will cover the gross amount of winnings without deductions for service charges, administrative fees, commissions, or similar charges.
The circular covers winnings from licensed gaming operators and, when applicable, unlicensed or unauthorized operators, based on the principle that income from any source remains taxable under existing laws.
The BIR also designated gaming operators as withholding agents responsible for remitting the required taxes to the government.
Earlier this week, the Bureau launched a new Taxpayer Portal for taxpayers under the Large Taxpayers Service as part of efforts to accelerate tax administration reforms and digital transformation.
Through the portal, taxpayers may view registration details, monitor filed tax returns by tax type, track tax payments, access account ledgers, and receive system-generated reminders.
