BIR clarifies rules on creditable withholding tax on TWAs

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MANILA, Philippines — The Bureau of Internal Revenue (BIR) advises all top withholding agents (TWA), manufacturers, direct importers, taxpayers, and other stakeholders that it has issued a circular clarifying the provision on the imposition of creditable withholding tax (CWT) on TWAs.

The clarification is contained in Revenue Memorandum Circular (RMC) No. 79-2026 and applies to Revenue Regulations (RR) No. 24-2025.

The circular answers frequently asked questions on the implementation of the revenue regulations, including the application of the 0.5% CWT on purchases from manufacturers and direct importers of covered goods intended for wholesale.

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BIR clarifies rules on creditable withholding tax on TWAs

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