17 Aug BIR Reminds Social Media Influencers To Pay Taxes, Penalty: Up To P10 Million & More
Mga higala! The Bureau of Internal Revenue (BIR) issued a memorandum yesterday, August 16, 2021, reminding all social media influencers in the country to pay their taxes!
According to the said memo, they have received reports that “certain social media influencers have not been paying their income taxes despite earning huge income from the different social media platforms.”
Some are allegedly not even registered with the BIR or are registered under different tax types or lines of business and are not declaring their earnings for tax purposes.
The memo then emphasized that based on the Philippines’ income tax, gains or profits received by the social media influencer or services rendered or to be rendered irrespective of the manner or form of payment are included.
Below are the included sources of gains or profits, according to BIR:
- YouTube Partner Program
- Sponsored Social and Blog Posts
- Display Advertising
- Becoming a “brand representative” or ambassador
- Affiliate Marketing
- Co-Creating Product Lines
- Promoting Own Products
- Photo and Video Sales
- Digital Courses, Subscriptions, etc
- Podcasts and Webinars
All types of income from Philippine-based contents of resident aliens are also taxable.
Moreover, social media influencers are also liable for business tax, which may either be a percentage or VAT (Value Added Tax).
Those who will try to evade or fail to comply will be punished by a fine of not less than P500,000 but not more than P10,000,000 and will face 6-10 years of imprisonment.
For more details, read:
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