RMC No. 57-2026 Digest

RMC No. 57-2026 clarifies that jackpot prizes from casino and other gambling activities fall within the statutory definition of "winnings" subject to final withholding tax under Sections 24(B)(1), 25(A)(1) and 25(B) of the Tax Code and its implementing regulations. It applies to individuals, whether citizens or aliens, and covers winnings from licensed and, where applicable, unlicensed or unauthorized gaming operators. The tax base is the gross amount of the prize, without deductions for service charges, administrative fees, commissions, or similar charges. Winnings within Section 24(B)(1) are subject to a 20% final withholding tax, while non-resident aliens not engaged in trade or business are subject to 25% under Section 25(B). Withholding agents or gaming operators that fail to withhold and remit are liable for surcharge, interest, and compromise penalties, without prejudice to criminal actions under Title X of the Tax Code.