RR No. 5-2025: Amending Revenue Regulations No. 2-98 Relative to the Withholding Tax Rates on Certain Income Payments Subject to Creditable Withholding Tax Pursuant to Section 57 of the National Internal Revenue Code of 1997, as Amended by Republic Act No. 12066

Key points

1. Provisions amended. Section 2.57.2 (H) and (X) of RR No. 2-98, as renumbered and amended by RR No. 11-18 and RR No. 16-23, respectively, are further amended.
2. Credit card companies. On gross amounts paid by a credit card company in the Philippines to a business entity for sales made to cardholders, the rate is One-half percent (1/2%).
3. E-marketplace and digital financial services. On gross remittances by e-marketplace operators and digital financial services providers to sellers or merchants for goods or services sold or paid through their platform, the rate is One-half percent (1/2%).

Who is affected

• Credit card companies and the business entities they pay
• E-marketplace operators and digital financial services providers
• Sellers and merchants on their platforms

Deadlines and effectivity

• Issued February 27, 2025