Revenue Regulations No. 24 – 2025 – Further amending the pertinent provisions of Section 2.57.2.(I) under Revenue Regulations (RR) No. 2-98, as amended by RR No. 11-2018, RR No. 7-2019 and RR No. 31-2020, on the Imposition of Creditable Withholding Tax on Top Withholding Agents

SECTION 1. SCOPE – Pursuant to the provisions of Sections 244 and 245 of the National Internal Revenue Code (NIRC) of 1997, as amended these Regulations are hereby promulgated to further amend Section 2.57.2(I) of Revenue Regulations No. 2-98, as amended by RR No. 11-2018, on the imposition of creditable withholding tax for top withholding agents.

SECTION 2. AMENDATORY PROVISIONS – The pertinent provisions of Section 2 of RR No. 2-98, as amended, are hereby further amended to read as follows:

“SECTION 2.57.2. Income Payments Subject to Creditable Withholding Tax and Rates Prescribed Thereon. Except as herein otherwise provided, xxx.

(I) Income payment made by top withholding agents, either private corporations or individuals, to their local/resident supplier of goods and local/resident supplier of services other than those covered by other rates of withholding tax. [formerly under letters (M) and (W)] – Income payments made by any of the top withholding agents, including non-resident aliens engaged in trade or business in the Philippines, shall be subjected to the following withholding tax rates:

Supplier of goods – One percent (1%)
Supplier of services – Two percent (2%)

Provided, however, that, for gross payments to the manufacturers and direct importers, whether by individuals or corporations, of the following goods intended for wholesale, the tax of one-half percent (1/2%) shall imposed instead:

a) motor vehicles in Completely Built Units (CBUs) or Semi-Knockdown (SKD) units, motor vehicle parts and accessories;
b) medicine/pharmaceutical products; and
c) solid or liquid fuels and related products.

xxx xxx xxx”

SEC.3. REPEALING CLAUSE – All other issuances and rules and regulations or parts thereof which are contrary to and inconsistent with any provisions of these Regulations are hereby repealed, amended, or modified accordingly.

SEC.4. EFFECTIVITY – These Regulations shall take effect fifteen (15) days following its publication in the Official Gazette or the BIR official website, whichever comes first.