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.
“We need to give businesses sufficient time to make the necessary system adjustments without disrupting their operations.”
Commissioner Charlito Martin Mendoza emphasized the need to give businesses sufficient time to make the necessary system adjustments without disrupting their operations.
“We 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,” Mendoza said.
“We are giving businesses reasonable transition periods to make the necessary adjustments, comply with the new requirements, and avoid unnecessary disruption to their operations.”
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 “N/A” or “0.00” 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.
