Not spared from taxes anymore, the country’s social media influencers have to register with the Bureau of Internal Revenue (BIR) their income after the agency came down with policies that require all forms of income in social media be included in the country’s taxation system.
MANILA — The Department of Finance (DOF) has lamented that more than half of the initial list of tax-delinquent social media influencers have yet to begin the sign-up process with the BIR despite crackdown.
“I’m sure that they are looking into those currently registered first and probably will be expanding their search to those who still haven’t registered,” Finance Assistant Secretary Dakila Elteen M. Napao said.
According to the BIR, social media influencers who earn money from their posts on digital media are classified as self-employed individuals or persons engaged in trade or business as sole proprietors.
Their earnings are generally considered as business income, as defined under BIR’s Revenue Memorandum Circular (RMC) No. 97-2021 issued last Aug. 16.
Under RMC 97-2021, social media influencers should pay income tax and percentage tax or, if applicable, the value-added tax (VAT), as mandated under the National Internal Revenue Code (NIRC) and other existing laws.
Napao disclosed that as of late Friday, 08 October, only 105 individuals who are raking in profits through social media channels have registered with the tax bureau as of 15 September 2021.
She said the 105 social media influencers do not even comprise half of the initial 250 top earning social media celebrities, or content creators, who have caught the BIR’s attention.
Napao said social media influencers who deleted their accounts and personalities who are based-abroad but are earning in the Philippines through online platforms will be examined by the BIR. (JD/The MiNT)