Revenue Regulations · RR

RR 5-2025

To amend the creditable withholding tax rates prescribed in RR No. 2-98 on certain income payments — specifically the rates on income payments made by credit card companies and on remittances of electronic marketplace operators and digital financial services providers to merchants — pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended by RA No. 12066 (CREATE MORE Act).

Bureau of Internal RevenueIndependent research copy

Document type: RR
Number: 5
Year: 2025
Text quality: Not specified

Document text

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RR No. 5-2025, issued February 27, 2025, amends RR No. 2-98 to prescribe creditable withholding tax rates on certain income payments pursuant to Section 57 of the National Internal Revenue Code of 1997, as amended by RA No. 12066 (CREATE MORE Act). It further amends Section 2.57.2 (H) and (X) of RR No. 2-98 (as renumbered and amended by RR No. 11-18 and RR No. 16-23) to impose a one-half percent (1/2%) withholding rate on: (H) gross amounts paid by any credit card company in the Philippines to any business entity representing sales of goods/services made to cardholders; and (X) gross remittances by e-marketplace operators and digital financial services providers to sellers/merchants for goods or services sold or paid through their platform/facility.