REVENUE MEMORANDUM CIRCULAR NO. 57-2026 issued on May 26, 2026 clarifies the inclusion of jackpot prizes from casino and other gambling activities within the statutory definition of “winnings” subject to final withholding tax pursuant to Sections 24(B)(1), 25(A)(1) and 25(B) of the National Internal Revenue Code of 1997, as amended (Tax Code), and its implementing regulations.

This Circular shall apply to jackpot prizes or similar winnings derived by individuals, whether citizens or aliens, from participation in casino gaming and other gambling activities.

This includes jackpot prizes or winnings from activities conducted by licensed gaming operators and, where applicable, unlicensed or unauthorized gaming operators, consistent with the principle that income from any source is taxable under existing laws, subject to enforceability and applicable withholding requirements.

The tax base for computing the final withholding tax shall be the gross amount of the jackpot prize or winnings, without any deduction for service charges, administrative fees, commissions, or other similar charges.

Jackpot prizes or winnings derived by individuals that fall within the scope of Section 24(B)(1) of the Tax Code, shall be subject to a final withholding tax of twenty percent (20%).

In the case of non-resident aliens not engaged in trade or business within the Philippines, jackpot prizes and winnings shall be subject to final withholding tax of twenty-five percent (25%), in accordance with Section 25(B) of the Tax Code.

Failure of the withholding agent or gaming operator to withhold and remit the correct amount of final tax on jackpot prizes or winnings shall render such party 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.