Author MRTC

Introduction

REVENUE MEMORANDUM CIRCULAR (RMC) NO. 057-2026

This Circular aims to clarify the tax treatment of jackpot prizes to ensure consistent application of existing laws, promote equity and uniformity in taxation, and safeguard government revenue – without expanding or modifying the scope of the law.

COVERAGEThis issuance applies to jackpot prizes or similar winnings derived by individuals, whether citizens or aliens, from participation in casino gaming and other gambling activities. This is inclusive of licensed, unlicensed or unauthorized gaming operators, where applicable.
TAX BASE AND RATEThe Tax Base and Rate for computing the Final Withholding Tax shall be:  
1. Individuals within the scope of Section 24(B)(1) of the Tax Code
Tax Base: Gross amount of the jackpot prize or winnings, without any deduction for:
o Service charges
o Administrative fees
o Commissions
o Other similar charges
Applicable Tax Rate: 20%

2. Non-Resident Aliens not engaged in trade or business in the Philippines
Tax Base: Same as above — gross amount of the jackpot prize or winnings, without deductions for service charges, administrative fees, commissions, or other similar charges.
Applicable Tax Rate: 25%
PENALTIESFailure to withhold and remit the correct amount of final tax on jackpot prizes or winnings shall render the withholding agent or gaming operator liable for the corresponding surcharge, interest, and compromise penalties, without prejudice to the filing of appropriate criminal actions, in accordance with Title X of the Tax Code.