RR 6-2026: How to Show Creditable Withholding Tax on Your Invoices
One new line on the invoice, in force since October 16, 2026. Who needs it, what RMC No. 112-2026 changed about old booklets and system deadlines, and how the line should look.
Starlight Admin
Under RR 6-2026, your invoice must show the creditable withholding tax as its own line whenever your buyer withholds.
The rule has applied since October 16, 2026. On October 22, the BIR issued RMC No. 112-2026 to explain it: who sets the amount, what to do with old booklets, and when systems must catch up.
Key takeaways
- Since October 16, 2026, invoices must show creditable withholding tax (CWT) as a separate line whenever the buyer withholds.
- Only where the buyer is legally required to withhold. Sales to consumers, and many B2B sales, need no line.
- The buyer decides the rate and amount and tells you before the invoice is final. You may rely on it in good faith.
- No need to pre-stamp or reprint unused booklets: write or stamp the line on CWT sales only.
- Systems: December 31, 2026 for CAS, CBA and e-invoicing; March 31, 2027 for POS and cash registers.
What RR 6-2026 changed on your invoice
RR 6-2026 amends Section 6(B) of RR No. 7-2024, the list of what every invoice must show under the Ease of Paying Taxes Act (RA 11976)(opens in a new tab).
It adds one item, the 22nd: the amount of creditable withholding tax, if applicable, shown as a separate item.
22nd
mandatory invoice item, added to RR 7-2024
Oct 16
2026: the rule has been in force since
Dec 31
2026: CAS, CBA and e-invoicing systems
Mar 31
2027: POS, cash registers, other systems
Key dates: from October 2026 to March 2027
RR 6-2026 takes effect 15 days after publication in the Official Gazette or on the BIR website(opens in a new tab), whichever comes first.
October 1, 2026
RR 6-2026 posted
The BIR posts the regulation on its website, which starts the 15-day clock.
October 16, 2026
In force
Fifteen days after posting. Invoices on CWT sales must now show the line.
October 22, 2026
RMC No. 112-2026
The BIR explains who determines the amount, what happens to unused booklets, and system deadlines.
December 31, 2026
CAS, CBA and e-invoicing systems
The CWT field is due in computerized systems. The same day is the e-invoicing deadline under RMC No. 98-2026.
March 31, 2027
POS, cash registers and other systems
Systems not yet under mandatory e-invoicing must have the field by this date.
Who must show creditable withholding tax on invoices
Only sales where the buyer is legally required to withhold. RMC No. 112-2026 is explicit that a B2B sale does not trigger the line on its own.
- Suppliers to corporations that withholdIncluding top withholding agents.
- Suppliers to government officesAgencies deduct tax before paying.
- Contractors and professionalsBilling companies for services.
- Anyone invoicing from a systemCAS, POS, cash register or e-invoicing.
- Buyers that withholdYou now owe suppliers the details first.
- Online marketplace merchantsInvoice the full sale; the platform shows its withholding.
Not affected: ordinary retail sales to consumers who do not withhold.
What RMC No. 112-2026 clarified
RR 6-2026 is short. The BIR's October 22 circular fills in four practical gaps.
Who decides the withholding amount
The buyer does. As withholding agent, it works out the figures and gives them to you before the invoice is final.
The buyer
- Decides whether withholding applies to the purchase
- Sets the classification, rate, tax base and amount
- Tells the seller before the invoice is finalized
- Still deducts, remits and reports the tax, and issues BIR Form 2307
The seller (you)
- Shows the line using the buyer's figures
- May rely on them in good faith, unless it knows or has reason to believe they are wrong
- Gets the figures late? Issues a BIR-registered credit memo that references the original invoice
- Never erases, overwrites or cancels the original invoice
What to do with unused invoice booklets
Keep using them until they run out. You do not need to pre-stamp them, surrender them or get a new Authority to Print.
On a sale where tax is withheld, stamp, print or legibly write the notation and the amount. New print runs must have the line built in.
System deadlines for CAS, POS and cash registers
| How you invoice | CWT field due |
|---|---|
| Computerized accounting system (CAS), computerized books (CBA), e-invoicing system | December 31, 2026 |
| POS, cash register machine, other systems not yet under e-invoicing | March 31, 2027 |
| Existing manual and loose-leaf booklets | Usable until consumed |
A change made only to add the field counts as a limited system change. It does not automatically need a new registration, but notification rules still apply.
Corrections and online marketplaces
Late figures from the buyer are fixed with a BIR-registered credit memo. On marketplaces, you invoice the full sale; the platform shows its withholding in the settlement.
Sample invoice with “Less: Withholding Tax”
A VAT-registered contractor bills ₱100,000 for services. The buyer withholds on the amount before VAT.
INVOICE
Illustration
- Professional services
- ₱100,000.00
- VAT (12%)
- ₱12,000.00
- Total amount of sale
- ₱112,000.00
- Less: Withholding Tax (2%)
- (₱2,000.00)
- Amount due
- ₱110,000.00
The invoice line vs BIR Form 2307
RR 6-2026 does not touch Form 2307, the Certificate of Creditable Tax Withheld at Source. You still need both documents.
| Point of comparison | Invoice CWT line | BIR Form 2307 |
|---|---|---|
| Who issues it | The seller | The buyer, as withholding agent |
| What it shows | The tax withheld on that sale | Tax withheld at source on payments to the seller |
| What it is for | A complete invoice under RR 7-2024 | Supporting the seller's tax credit |
| Changed by RR 6-2026? | Yes: a new required line | No |
The invoice shows what was withheld. Form 2307 is the certificate that supports the credit.
Penalties for leaving the CWT line off
RR 6-2026 states no penalty of its own. But the line is now mandatory invoice content where CWT applies.
Section 264(a) of the Tax Code penalizes invoices that lack required information. As of October 29, 2026, we found no BIR issuance on how it applies to this line.
Your RR 6-2026 compliance checklist
Seven steps for your billing and payables teams, in order.
- 1
Map your customers
List which customers withhold, and ask each for the classification, rate and base before you invoice.
- 2
Add the line to your template
Use "Less: Withholding Tax", "Less: Creditable Withholding Tax" or "Less: CWT", with the amount and the net amount due.
- 3
Use up old booklets the right way
On CWT sales, stamp, print or legibly write the notation and the amount. Order new print runs with the line built in.
- 4
Book your system change
Ask your provider for the CWT field, and check the notification your BIR registration requires for a limited system change.
- 5
Fix mistakes with a credit memo
If withholding details arrive after you invoice, issue a BIR-registered credit memo that references the original.
- 6
Reconcile against Form 2307
Match the CWT on your invoices to the 2307s you receive, every month rather than at year-end.
- 7
Brief billing and payables
Your billing team shows the line. Your payables team, when you withhold, sends suppliers the details first.
Going electronic too? Covered taxpayers must issue e-invoices by December 31, 2026 under RMC No. 98-2026; read our e-invoicing deadline guide. The rest of the year's dates are on our Philippine tax calendar.
This article is general information, not tax advice.
RR 6-2026 invoice review
Get every invoice right before your system deadline.
Our tax compliance and bookkeeping teams review your invoice template, check your billing system, and align your invoices with your withholding records, so your documents and your returns tell the same story.
Also see taxation and bookkeeping or BIR compliance help in Makati.
Frequently asked questions
What is RR No. 6-2026?
A BIR Revenue Regulation that amends Section 6(B) of RR No. 7-2024 to add one item to the information every invoice must show: the amount of creditable withholding tax, if applicable, as a separate item. It does not create a new tax or change any withholding rate.
When did RR 6-2026 take effect?
On October 16, 2026. It takes effect 15 days after publication in the Official Gazette or on the BIR website, whichever comes first, and the BIR posted it on its website on October 1, 2026.
Do all invoices need to show creditable withholding tax?
No. Under RMC No. 112-2026, the line is needed only when the buyer is legally required to withhold on the purchase. A sale to another business does not trigger it on its own, and ordinary retail sales to consumers who do not withhold do not need it.
What should the withholding tax line say on the invoice?
RMC No. 112-2026 accepts "Less: Withholding Tax", "Less: Creditable Withholding Tax" or "Less: CWT", followed by the amount. The invoice shows the full sale, the amount withheld and the net amount due.
Do I need to stamp or reprint my unused invoices?
No pre-stamping and no reprint. Under RMC No. 112-2026, unused manual and loose-leaf invoices can be used until consumed without surrendering them or getting a new Authority to Print. On a sale where tax is withheld, stamp, print or legibly write the notation and the amount. Newly printed invoices must include the line.
Who decides how much withholding tax goes on the invoice?
The buyer. RMC No. 112-2026 makes the buyer, as withholding agent, responsible for the classification, rate, tax base and amount, and for telling the seller before the invoice is finalized. The seller may rely on that information in good faith unless it knows, or has reason to believe, it is wrong.
What is the deadline to update POS and accounting systems?
Computerized accounting systems, computerized books and e-invoicing systems have until December 31, 2026. POS systems, cash register machines and other systems not yet under mandatory e-invoicing have until March 31, 2027. Both dates are from RMC No. 112-2026, which allows the BIR to set different dates.
Does the CWT line on the invoice replace BIR Form 2307?
No. The invoice records what was withheld on that sale. BIR Form 2307, the Certificate of Creditable Tax Withheld at Source, is still issued by the buyer to the seller and is what supports the seller's tax credit. Keep issuing, collecting and filing both.
Does showing CWT on the invoice change my VAT?
No. RMC No. 112-2026 says the withholding is not a discount and must not be deducted from gross sales, VATable sales or the VAT base. Your VAT is still computed on the full sale.
Is there a penalty for leaving the CWT line off an invoice?
RR 6-2026 states no penalty of its own. Section 264(a) of the Tax Code penalizes invoices that lack required information, but as of October 29, 2026 we found no BIR issuance on how it applies to this line. Penalty amounts have changed over time, so confirm current figures with your RDO or a licensed professional.
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