BIR clarifies tax treatment of casino jackpot winnings
The BIR mandates a 20% final withholding tax on casino jackpots and requires e-marketplace operators to submit alphalists.Summary
The Bureau of Internal Revenue (BIR) has issued Revenue Memorandum Circular (RMC) No. 57-2026 to clarify the taxation of large casino jackpots. Under this circular, jackpot prizes are considered "winnings" and are subject to a final withholding tax of 20%, or 25% if derived by nonresident aliens. The tax base is the gross amount of the prize without deductions for service charges or fees. The BIR also issued RMC No. 55-2026, requiring electronic marketplace operators and digital financial services providers to submit alphalists of employees or payees as attachments to their tax returns. Failure to comply with these withholding tax obligations can result in penalties, including surcharges, interest, and compromise penalties. Additionally, PAGCOR has set a May 31 deadline for business-to-business gaming providers to secure mandatory accreditation, warning that noncompliant providers will face an immediate ban and the decommissioning of their electronic gaming systems effective August 1. Separately, PAGCOR launched a 24/7 National Problem Gambling Helpline to provide confidential support and counseling for individuals experiencing gaming-related issues.
(Source：Businessworld Online)