TLDR The Philippine Bureau of Internal Revenue confirmed that casino and gambling jackpot prizes are subject to at least 20% final withholding tax for resident taxpayers Nonresident aliens not engaged in trade or business in the Philippines face a higher 25% tax rate on winnings The tax is calculated on gross winnings with no deductions allowed for service charges, fees, or commissions Gaming operators are designated as withholding agents and face penalties including surcharges and criminal action for noncompliance The guidance applies to both licensed and unlicensed operators and covers cash prizes, progressive jackpots, and table game winnings
The Philippine Bureau of Internal Revenue has confirmed that jackpot prizes from casinos and gambling activities are subject to a minimum 20% final withholding tax. The agency published the guidance through Revenue Memorandum Circular No. 57-2026 on Tuesday, May 26.
Internal Revenue Commissioner Charlito Martin R. Mendoza issued the circular to clarify the tax treatment of gambling winnings. The move comes as the Philippine gaming industry continues to expand under the oversight of the Philippine Amusement and Gaming Corp.
The BIR said the growth in high-value jackpot prizes has led to more public questions about how winnings should be taxed. The circular is intended to ensure consistent application of existing tax laws.
Tax Rates and How They Apply
Under the new guidance, resident taxpayers will pay a 20% final withholding tax on their gambling winnings. This applies to jackpots from casinos and other gambling operations across the country.
Nonresident aliens who are not engaged in any trade or business in the Philippines face a steeper rate. Their winnings will be taxed at 25% under the same final withholding tax structure.
The BIR made clear that the tax base covers gross winnings without any deductions. Service charges, administration fees, commissions,