Advisory on Revenue Regulation 16-2023
Starting October 13, 2024, GCash will be carrying out Revenue Regulation (RR) No. 16-2023, which states that digital financial services providers such as GCash must withhold 1% tax on one-half of the total gross remittances to sellers for goods or services sold by or paid to the Merchant through GCash.
Who are affected?
All merchants currently registered with GCash, except those who will not derive or have not derived an annual cumulative gross remittance of PHP 500,000. A BIR-stamped Sworn Declaration is among the bases to determine whether the merchant meets said threshold and is subject to withholding.
Customers will not be affected.
What to do next
To ensure swift compliance with the regulation, all merchants must submit the following:
- BIR Certificate of Registration (BIR Form No. 2303 / COR)
- Certificate of Tax Exemption or Proof of Lower Income Tax, if applicable
- Sworn Declaration stamped received by the BIR
The Sworn Declaration will be used to properly determine if the merchant will be subject to the RR No. 16-2023.
Partner Merchants may submit their requirements to GCash via this link.
For more information, please refer to the full text of RR No. 16-2023 from the BIR’s website.
Refund Information
According to RMC No. 79-2024, which extends the transition period of Revenue Regulation 16-2023, any withheld amounts due to the delay in notification will be promptly refunded to the merchant's settlement bank account. We ask for the merchants' patience as GCash processes the refunds.