Philippines: tax on lottery prizes
The Philippines taxes a lottery prize above ₱10,000 at 20% of the whole prize, withheld when it is paid; prizes of ₱10,000 or less are paid in full. On a ₱100,000,000 Ultra Lotto 6/58 jackpot, the tax is ₱20,000,000 and the winner receives ₱80,000,000.
How the tax works
PCSO withholds a 20% final tax on each prize above PHP 10,000, on the whole prize, before paying it; as a final tax it is not charged again on the winner's return. Prizes of PHP 10,000 or less are paid without this tax. The tax dates from the TRAIN law of 2018; before it, PCSO prizes were tax-free.
Games covered: Ultra Lotto 6/58, Grand Lotto 6/55, Superlotto 6/49, Mega Lotto 6/45, Lotto 6/42, 6D, 4D, 3D and 2D.
Questions
Is the whole prize taxed in the Philippines, or only the part above ₱10,000?
The whole prize: once a single prize is above ₱10,000, 20% of all of it is withheld. Prizes of ₱10,000 or less are paid in full.
Do I declare the prize on my tax return?
No: the tax withheld when the prize is paid is final, and the prize is not added to the annual income tax return.
Rules checked on 29.09.2026; compare other countries or see the United States calculator. Estimates, not tax advice.
Updated: