The Bureau of Internal Revenue (BIR) has issued Revenue Regulation (RR) No. 24-2025 last September 25, 2025, which updates the rules on creditable withholding tax (CWT) for top withholding agents. This regulation amends Section 2.57.2(I) of RR No. 2-98, as previously revised by RR Nos. 11-2018, 7-2019, and 31-2020.
Who are considered top withholding agents?
Top withholding agents include large private corporations, high-income individuals, and non-resident aliens engaged in trade or business in the Philippines. These entities are required to withhold taxes on payments made to suppliers on purchases of goods and services.
What are the updated withholding tax rates?
Under the new regulation, top withholding agents must apply:
- 1% withholding tax on payments to local/resident suppliers of goods; and,
- 2% withholding tax on payments to local/resident suppliers of services.
Are there any special rates for specific goods?
A reduced rate of 0.5% (½%) applies to payments made to manufacturers and direct importers of the following goods intended for wholesale:
- Motor vehicles Completely Built Units (CBU) or Semi-Knockdown (SKD) units, including parts and accessories;
- Medicines and pharmaceutical products; and,
- Solid or liquid fuels and related products.
When does this regulation take effect?
The regulation becomes effective on 10 October 2025, which is 15 days after its publication in the BIR website.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 07 October 2025
