BIR: Casino, gambling jackpot prizes subject to at least 20% tax
Manila Bulletin
The BIR mandates a 20% final withholding tax on casino and gambling jackpot prizes for resident taxpayers, and 25% for non-resident aliens.Summary
The Bureau of Internal Revenue (BIR) has clarified that jackpot prizes from casinos and other gambling activities are subject to a final withholding tax. Under Revenue Memorandum Circular No. 57-2026, resident taxpayers are subject to a 20-percent tax on their winnings. Non-resident aliens not engaged in trade or business within the Philippines face a 25-percent tax rate. The tax base is the gross amount of the prize, without deductions for service charges or fees. Gaming operators are designated as withholding agents responsible for remitting these taxes to the government. Failure to comply may result in surcharges, interest, and penalties.
(Source：Manila Bulletin)