BIR has issued Revenue Regulation (RR) No. 24-2025 on September 25, 2025, revising the rules on Creditable Withholding Tax (CWT) applicable to Top Withholding Agents (TWAs).

TWAs’ income payments are subject to the following withholding tax rates:

  • 1% – Payments to local/resident suppliers of goods
  • 2% – Payments to local/resident suppliers of services

However, 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.

The regulation becomes effective on 10 October 2025, or 15 days after its publication in the BIR website.