Tax Alert No. 32 [Revenue Memorandum Circular (RMC) No. 55-2026 dated 26 May 2026]

The Bureau of Internal Revenue (BIR), through RMC 55-2026, reminds all withholding agents that, in addition to their  obligation to deduct and remit the withholding taxes to the Bureau of Internal Revenue (BIR), they are likewise required to submit the Alphabetical List of Employees/Payees from Whom Taxes Were Withheld (Alphalist) as an attachment to their withholding tax returns.

The type of alphalist to be submitted depends on the specific withholding tax return and its corresponding deadline, as follows:

Since the alphalist forms an integral part of the withholding tax return, its submission is likewise a mandatory obligation of the withholding agent. Non-submission constitutes a violation of BIR regulations and is subject to a corresponding penalty.

Under RR No. 16-2023, as amended by RR No. 5-2025, electronic marketplace operators and digital financial services providers (DFSPs) are required to withhold and remit one half percent (½%) of gross remittances to sellers. However, BIR records indicate that a significant number of entities have yet to comply with this requirement.

Accordingly, this Tax Alert is issued to remind all withholding agents, particularly e-marketplace operators and DFSPs, to strictly comply with the submission of alphalist through the BIR eSubmission facility, as prescribed under RR No. 1-2014 to avoid unnecessary penalties.

The full text of the RMC may be accessed through the BIR website. 

For any inquiry or request for assistance, please feel free to contact any member of our Tax Services group. You may also reach us through this link: www.pwc.com/ph/en/about-us/contact-us.html