RMC No. 57-2026: Clarifies the inclusion of jackpot prizes from casino and other gambling activities within the statutory definition of “winnings” subject to final tax pursuant to Sections 24(B)(1), 25(A)(1) and 25(B) of the National Internal Revenue Code of 1997, as Amended.

Summary

RMC No. 57-2026 clarifies that jackpot prizes from casino and other gambling activities are “winnings” subject to final tax under Sections 24(B)(1), 25(A)(1), and 25(B) of the Tax Code.

Key points

1. Coverage. The Circular applies to jackpot prizes or similar winnings of individuals, citizens or aliens, from casino gaming and other gambling activities. This includes activities of licensed gaming operators and, where applicable, unlicensed or unauthorized operators, subject to enforceability and withholding requirements.
2. Tax base. The final withholding tax is computed on the gross amount of the jackpot prize or winnings, with no deduction for service charges, administrative fees, commissions, or similar charges.
3. Rates. Winnings within Section 24(B)(1) are subject to final withholding tax of twenty percent (20%). Non-resident aliens not engaged in trade or business in the Philippines are subject to twenty-five percent (25%) under Section 25(B).
4. Liability for non-withholding. A withholding agent or gaming operator that fails to withhold and remit the correct final tax is liable for surcharge, interest, and compromise penalties, without prejudice to criminal actions under Title X of the Tax Code.

Who is affected

• Individuals, citizens or aliens, who win jackpot prizes in casino gaming and other gambling
• Non-resident aliens not engaged in trade or business in the Philippines
• Gaming operators and withholding agents

Deadlines and effectivity

• Issued: May 26, 2026

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.