Recently the Bureau of Internal Revenue (BIR) announced that it would soften is approach on social media influencers, according to a Malaya Business Insight news report.
In reference to the Revenue Memorandum Circular 97-2021 issued by the BIR, social media influencers are defined as those who derive their income from the following sources: YouTube Partner Program; sponsored social and blog posts; display advertising; becoming a brand representative/ambassador; affiliate marketing; co-creating product lines; promoting own products; photo and video sales; digital courses, subscriptions, e-books; and podcasts and webinars.
To put things in perspective, posted below is an excerpt from the Malaya Business Insight report. Some parts in boldface…
Bureau of Internal Revenue (BIR) commissioner Romeo Lumagui Jr. is opting to take a “soft” approach on influencers, giving them a chance to cooperate and comply first with the tax agency’s regulations.
When asked by reporters if the agency is currently working on possible cases to be filed against non-compliant social media personalities, the BIR chief said: “Not yet. I don’t want to file a case yet because I want to take a soft approach first.”
“We may do an audit, but we won’t file a case yet. As long as they are willing to comply, we will help them (to comply),” Lumagui said.
During the previous administration in 2021, the BIR started cracking down on social media influencers and probed an initial 250 individuals to check their tax compliance. Some major online personalities, however, deactivated their accounts after the release of a related circular during the said year.
Lumagui said he has extended his invitation to the association of these social media personalities to sit down and discuss with them their concerns and how the industry can be more tax compliant.
“We would just like to educate them on their obligation,” the BIR chief said.
Lumagui also said he has been in touch with individual influencers who are correctly paying their taxes, and asked them to encourage their colleagues to do the same.
According to Revenue Memorandum Circular 97-2021, social media influencers should pay income tax and percentage tax or, if applicable, the value-added tax, as mandated under the National Internal Revenue Code and other existing laws.
Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think this latest move by the BIR will encourage social media influencers to come out and cooperate?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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