Changelog · April 15, 2026
BIR clarifies expanded withholding rates for digital service providers
RR-style clarification on EWT applicable to e-commerce platforms and digital service providers, effective April 2026.
What changed
The Bureau of Internal Revenue clarified the application of expanded withholding tax (EWT) on payments to digital service providers and e-commerce sellers, addressing ambiguity from earlier circulars.
Who's affected
- Marketplaces (Shopee, Lazada, TikTok Shop) processing seller payouts
- Companies paying digital ad platforms (Google, Meta, TikTok)
- Online sellers receiving payments through marketplaces
What you should do
- Marketplaces: confirm withholding-at-source on seller payouts (typically 1%) is properly remitted via 0619-E and reported in 1601-EQ.
- Sellers: request your BIR Form 2307 from each marketplace quarterly, you can claim it as creditable withholding against your income tax.
- Digital ad spenders: ensure 5–15% EWT applies depending on whether the recipient is a corporation or individual, resident or non-resident.
How UPworth helps
We track the full alphalist for marketplace EWT and ensure sellers actually claim the 2307 credits, they're worth real money at year-end ITR time. Talk to us.