MANILA – Withholding, accounting and remittance of the 2 percent creditable withholding tax on gross remittance to generation firms and other market participants on electricity sold through the Wholesale Electricity Spot Market (WESM) has been designated to the Electricity Market Operator of the Philippines (IEMOP).
Under Revenue Regulations (RR) No. 5-2026, signed by Finance Secretary Frederick D. Go upon the recommendation of BIR Commissioner Charlito Martin R. Mendoza and published by the agency on Oct. 1, 2026, the market operator will deduct the applicable withholding tax from gross remittances before payment to generation companies and other market participants.
EIMOP will also remit the taxes withheld through the bureau’s Electronic Filing and Payment System (eFPS), issue BIR Form No. 2307 to each payee and will also submit the required Alphabetical List of Payees and a duly certified list of electricity buyers after each taxable quarter.
BIR, in a news release, said the move is in line with the bid to strengthened tax accountability in WESM.
It said the new regulation, “will take effect 15 days following its publication in the Official Gazette or on the BIR official website, whichever comes first.”
“We want to make sure that taxes from electricity transactions actually reach the government and are properly recorded. By placing the withholding responsibility with IEMOP, we have a clearer and more accountable system for tracking the taxes withheld and remitted from transactions in the electricity spot market,” Mendoza said. (PNA)
TAX ACCOUNTABILITY. The Bureau of Internal Revenue on Monday (Oct. 12, 2026) announced that it tasked the Electricity Market Operator of the Philippines to collect, account, and remit the 2 percent creditable withholding tax on gross remittance to generation firms and other market participants on electricity sold through the Wholesale Electricity Spot Market. This move, it said, is aimed to have better tax accountability in the WESM.
