RR No. 24-2025: Further amending the pertinent provisions of Section 2.57.2.(I) under RR No. 2-98, as amended by RR No. 11-2018, RR No. 7-2019 and RR No. 31-2020, on the imposition of Creditable Withholding Tax on Top Withholding Agents

Key points

1. Covered payments. The rule covers income payments by top withholding agents, whether private corporations or individuals, including non-resident aliens engaged in trade or business in the Philippines. The payments go to local or resident suppliers of goods and services not covered by other withholding rates.
2. General rates. The rate is one percent (1%) for suppliers of goods and two percent (2%) for suppliers of services.
3. One-half percent rate. A rate of one-half percent (1/2%) applies instead to gross payments to manufacturers and direct importers of goods intended for wholesale. The goods are motor vehicles in CBU or SKD units with parts and accessories, medicine and pharmaceutical products, and solid or liquid fuels and related products.

Who is affected

• Top withholding agents
• Local or resident suppliers of goods and services
• Manufacturers and direct importers of motor vehicles, medicine and fuels for wholesale

Deadlines and effectivity

• Issued September 25, 2025