Jackpot winnings taxed at 20%

BIR reiterates rules as operators face stricter withholding and filing requirements.

Jackpot winnings from casinos and other gambling activities are subject to a 20% final withholding tax, the Bureau of Internal Revenue (BIR) clarified, reiterating the rule under the National Internal Revenue Code of 1997 through a recent revenue memorandum.

The coverage includes both land-based casinos and regulated online gaming operations under PAGCOR, CEZA, and APECO oversight. For non-resident foreign winners, a higher 25% tax rate applies. The tax is computed based on the gross amount of winnings, reinforcing how payouts are treated at source.

The BIR reminded gaming operators that withholding is mandatory and final. Failure to apply the rule may result in surcharges, interest, compromise penalties, and possible criminal liability under the Tax Code.

In a separate directive, the agency also flagged compliance requirements for online sellers, marketplace operators, and digital financial service providers, requiring submission of monthly and annual alphalist attachments for withholding tax returns. The list forms part of official filings, and non-submission is treated as a violation and subject to penalties.

The reminder underscores tighter reporting expectations across gaming and digital commerce, where documentation and withholding obligations now sit under closer scrutiny.

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