RR No. 006-2026: Creditable Withholding Tax on Invoices

The Bureau of Internal Revenue released RR No. 006-2026, which amends the mandatory information that must appear on invoices. Under the new rules, businesses must show the amount of Creditable Withholding Tax (CWT), where applicable, as a separate item on every invoice they issue.

Whilst modest in scope, this amendment carries meaningful implications for how organisations design, print, and issue their invoices. The following sets out the key requirements of the regulation and the steps your business should take to ensure full compliance.

What Is the Legal Basis for This Regulation?

RR No. 006-2026 was issued under Sections 244 and 245 of the National Internal Revenue Code of 1997, as amended (Tax Code). It also relates to Section 47 of Republic Act No. 11976, known as the Ease of Paying Taxes Act.

The regulation amends Section 6(B) of RR No. 07-2024, which lists the information every invoice must contain under Section 237 of the Tax Code.

What Is the Key Change Regarding CWT on Invoices?

This section sets out the specific amendment introduced by RR No. 006-2026. Section 6(B), as amended, introduces the following addition to the list of mandatory invoice details:

"22. The amount of Creditable Withholding Tax, if applicable, shall be shown as a separate item."

In practical terms, this provision requires that where a transaction attracts CWT, the withheld amount must be disclosed as a distinct and clearly identifiable line item on the invoice. It may not be subsumed within other figures or omitted entirely.

It is important to note that this obligation arises solely in transactions where CWT is applicable. Where no withholding obligation exists, no corresponding entry on the invoice is required.

What Do the Transitory Provisions Mean for Existing Invoice Stocks?

The BIR recognises that many businesses still hold printed invoices that do not include a CWT field. To ease the transition, the regulation provides the following:

• Continued Use of Existing Stock. Unused or unissued invoices that exist on the effectivity date may continue to be used until fully consumed.
• Mandatory Stamping Requirement. The phrase "Less: Withholding Tax" must be stamped conspicuously on the face of each such invoice prior to its use.
• Newly Printed Invoices. All invoices printed after the effectivity date must reflect the same phrase before they are issued.

Businesses should therefore avoid issuing old invoice stock without the required stamp once the regulation takes effect.

What Are the Effectivity, Separability, and Repealing Provisions?

RR No. 006-2026 takes effect fifteen (15) days after its publication in the Official Gazette or on the BIR Official Website, whichever comes first.

Should any provision of the regulation subsequently be declared invalid or unconstitutional, the remaining provisions shall continue in full force and effect.  

Any prior issuances, rules, or regulations that are contrary to or inconsistent with RR No. 006-2026 are deemed repealed, amended, or modified accordingly.