23/10/2026
๐๐๐ฅ ๐๐๐ฆ๐๐ฆ ๐๐ก๐ฉ๐ข๐๐๐๐ก๐ ๐ฆ๐ฌ๐ฆ๐ง๐๐ ๐จ๐ฃ๐๐๐ง๐๐ฆ, ๐๐๐ฉ๐๐ฆ ๐๐จ๐ฆ๐๐ก๐๐ฆ๐ฆ๐๐ฆ ๐ ๐ข๐ฅ๐ ๐ง๐๐ ๐ ๐ง๐ข ๐๐ข๐ ๐ฃ๐๐ฌ ๐ช๐๐ง๐ ๐๐ช๐ง ๐ฅ๐๐ค๐จ๐๐ฅ๐๐ ๐๐ก๐ง๐ฆ
The Bureau of Internal Revenue (BIR) has eased the requirements for updating computerized accounting systems, cash register machines, point-of-sale systems, and other electronic invoicing systems, giving businesses more time to comply with the new creditable withholding tax (CWT) invoicing rules. Under Revenue Memorandum Circular (RMC) No. 112-2026, issued on October 22, 2026, the BIR clarified the implementation of Revenue Regulations (RR) No. 006-2026, which requires the separate presentation of CWT in sales invoices when applicable.
Commissioner Charlito Martin R. Mendoza emphasized the need to give businesses sufficient time to make the necessary system adjustments without disrupting their operations.
โWe understand that updating invoicing systems requires time and resources. That is why we are giving businesses reasonable transition periods to make the necessary adjustments, comply with the new requirements, and avoid unnecessary disruption to their operations,โ Commissioner Mendoza said.
For businesses using computerized accounting systems (CAS), computerized books of accounts (CBA), and other electronic invoicing systems covered by mandatory electronic invoicing, the deadline to incorporate the required CWT functionality is December 31, 2026, unless a later date is prescribed.
Meanwhile, taxpayers using existing cash register machines (CRMs), point-of-sale (POS) systems, and other invoicing systems not yet covered by mandatory electronic invoicing have until March 31, 2027, to complete the necessary modifications, subject to any earlier compliance date prescribed through a subsequent BIR issuance.
Businesses may continue using their existing registered invoicing systems during the transition. For transactions subject to CWT, the prescribed withholding tax phrase and corresponding amount must be stamped, printed, or legibly written on the face of the system-generated invoice before issuance. No such notation is required for transactions not subject to CWT.
After the applicable compliance deadline, the prescribed CWT phrase and field must appear in every system-generated invoice. The amount may be left blank or marked โN/Aโ or โ0.00โ when withholding tax does not apply.
System modifications made solely to accommodate CWT information are treated as Limited System Changes and do not automatically require new registration or accreditation, provided that they do not materially affect the system's core functions. Applicable notification and reporting requirements remain in effect.
For taxpayers using manual and loose-leaf invoices, existing unused invoices may continue to be used until fully consumed. The prescribed CWT phrase and corresponding amount need to be stamped, printed, or written only for transactions subject to withholding. Taxpayers are not required to surrender unused invoices or obtain a new Authority to Print (ATP) solely because their existing invoice layouts lack a separate CWT field.
The issuance supports the BIR's continuing regulatory reforms under Commissioner Mendoza's BIR DARES agenda by reducing unnecessary compliance costs while promoting more accurate and transparent reporting of creditable withholding taxes.
Read the full text of the RMC No. 112-2026 here:https://bir-cdn.bir.gov.ph/BIR/pdf/RMC%20No.%20112-2026_redacted.pdf
