BIR imposes 1% withholding tax on online merchants with annual earnings of over P500,000

Those who engage with selling online here in the Philippines and earn over P500,000 annually will have a new normal to live with as the Bureau of Internal Revenue (BIR) officially imposed the 1% withholding tax on online merchants that are found qualified, according to a Philippine News Agency (PNA) news article. Take note that BIR had been targeting online sellers previously and the Department of Finance (DOF) asserted that online sellers should be subject to the same tax obligations as traditional brick-and-mortar business owners for the sake of fairness.

In the year 2022, the digital economy of the Philippines contributed P2.08 trillion, equivalent to 9.4% of gross domestic product. Of this, e-commerce had the highest growth at 26.5%, with its share to the economy reaching 20% or P416.12 billion.

To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…

Let me end this piece by asking you readers: What is your reaction to this recent development? Do you think the BIR made the right move? Do you think the imposition of the 1% withholding tax on online sellers (that made over P500,000 annually) will have a significant impact on e-commerce here in the Philippines? If you were planning to sell goods or services online, does the 1% withholding tax discourage you?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

+++++

Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/and on Instagram athttps://www.instagram.com/authorcarlocarrasco

A successful 2023 for tourism in the Philippines

If you set aside all the politicking and hatred, you will realize that there is no denying that tourism in the Philippines (handled by the Department of Tourism under the administration of President Ferdinand “Bongbong” Marcos, Jr.) turned out very successful over the previous year in terms of foreign tourist arrivals and tourism revenues based on the most recent statistics recorded as emphasized in the recent news article published by the Philippine News Agency (PNA). The exact and final 2023 tourism statistics should be revealed very soon. 

To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…

Let me end this piece by asking you readers: What do you think about this recent development? Do you think the 2024 target of 7.7 million foreign tourist arrivals is achievable even though there are uncertainties overseas that could affect the Philippines as a tourist destination? Do you think the DOT should focus more on encouraging locals to add to the tourism industry’s growth in 2024? When it comes to foreign visitor revenue, do you think the Philippines can attract P500 billion in 2024? Do you think the recent conflicts between the Philippines and China over the West Philippine Sea could negatively affect the inflow of Chinese tourists into the country this year?

You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.

+++++

Thank you for reading. If you find this article engaging, please click the like button below, share this article to others and also please consider making a donation to support my publishing. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. Feel free to contact me with a private message. Also please feel free to visit my Facebook page Author Carlo Carrasco and follow me on Twitter at  @HavenorFantasy as well as on Tumblr at https://carlocarrasco.tumblr.com/ and on Instagram at https://www.instagram.com/authorcarlocarrasco