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Tax Alert

Updates on Tax Base and Rate for certain Creditable Withholding Taxes Pursuant to Republic Act (R.A.) No. 12066, or the CREATE MORE Act

(Revenue Regulations No. 05-2025 issued on February 27, 2025)

This Tax Alert is issued to inform taxpayers regarding the amendment to Revenue Regulations (RR) No. 02-1998 relative to the tax base and withholding tax rates for certain income payments subject to creditable withholding taxes pursuant to Section 5 of R.A. No. 12066, or the CREATE MORE Act.

Revenue Regulations (RR) No. 05-2025 amends Section 2.57.2 (H) and (X) of RR No. 02-1998, as amended. Pursuant to RR No. 05-2025, income payments made by credit card companies and remittances of electronic marketplace operators and digital financial services providers to merchants shall be subject to withholding tax as follows:

The regulation shall take effect fifteen (15) days after its publication in the Official Gazette or the BIR Official Website. The regulation was published on the BIR Official Website on Thursday, February 27, 2025.

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