The Bureau of Internal Revenue (BIR) has reiterated that electronic marketplace (e-marketplace) operators and digital financial services providers (DFSPs) are required to withhold and remit a portion of gross payments made to online sellers, as the agency ramps up efforts to strengthen tax compliance in the digital economy.
In Revenue Memorandum Circular (RMC) No. 55-2026 published on 26 May, the BIR said e-marketplace operators and DFSPs must remit 0.5 percent of gross remittances sent to sellers of goods and services.
Internal Revenue Commissioner Charlito Martin R. Mendoza said many digital entities have yet to comply with existing withholding tax requirements despite earlier regulations already mandating such obligations.
“However, BIR records show that many of these entities have not complied with this requirement,” Mendoza said in the circular, urging digital businesses to align with tax rules governing online transactions and remittances.
Aside from withholding obligations, the BIR also reminded digital platforms that they are required to submit alphabetical lists, or alphalists, of employees or payees from whom taxes were withheld. These alphalists are mandatory attachments to withholding tax returns.
Under the updated guidelines, monthly alphalists covering 12-percent value-added tax (VAT) and percentage tax must be submitted on or before the 10th day of the following month.
Meanwhile, quarterly alphalists covering creditable withholding tax (CWT) and final withholding tax (FWT) must be filed no later than the last day of the month following the end of each quarter.
For annual submissions, the alphalist for withholding tax on compensation and FWT must be filed every 31 January of the succeeding year, while the annual alphalist for CWT must be submitted by 1 March.
The BIR said these deadlines are aligned with the filing schedules of the corresponding tax returns to ensure consistency and transparency in tax reporting throughout the year.
Mendoza warned that failure to submit the required alphalists would be considered a violation of BIR regulations and may result in penalties.
The agency added that incomplete filings will also be treated as regulatory violations since the alphalist is considered an integral component of withholding tax returns.
The latest circular forms part of the government’s broader push to tighten oversight of the country’s growing digital economy and improve tax collection from online commercial activities.
