Philippine tax agency clarifies that casino winnings are taxable income
Gaming operators and other withholding agents are required to withhold and remit the corresponding taxes.
The Philippines.- The Philippine Bureau of Internal Revenue (BIR) has emphasised that jackpot prizes earned from casinos and other forms of gambling are classified as taxable and must be subjected to final withholding tax in accordance with the National Internal Revenue Code of 1997, as amended. The agency said this covers winnings from casino games, electronic gaming machines, bingo, progressive jackpots and other gambling, whether these are operated by licensed or unauthorised operators.
In Revenue Memorandum Circular No. 5Z-2026, issued on Tuesday, May 26, the BIR said the policy is intended to ensure the consistent application of tax rules. The tax base is the gross amount of winnings, with no deductions allowed for service charges, commissions or administrative fees.
The BIR stressed that the circular does not introduce new taxes or amend existing law, but merely clarifies how existing provisions should be applied. Under the rules, gaming operators and other withholding agents are required to withhold and remit the corresponding taxes. Failure to comply may result in penalties and possible criminal liability under the Tax Code.
