Tag: income

Bureau of Internal Revenue (BIR) on the lookout for local vloggers who made millions of pesos

Bureau of Internal Revenue (BIR) on the lookout for local vloggers who made millions of pesos

carlocarrasco

Are you a vlogger based here in the Philippines who made a lot of money recently? Be aware that the Bureau of Internal Revenue (BIR) is on the lookout for vloggers they might find taxable. The other day, it was reported by the Manila Bulletin that the BIR is paying close attention to a certain unidentified couple who allegedly earned between P50 million to P100 million (US$1 million to US$2 million based on the latest foreign exchange rates) that past few years and the deletion of their social media channel was seen to be a move to avoid taxation. It should be noted that the BIR launched a campaign focused on social media influencers or SMIs.

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

A couple, who reportedly raked in multi-million pesos from video blogging (vlogging), abruptly deleted their social media channel in what the Bureau of Internal Revenue (BIR) officials believe to be an attempt to avoid paying taxes.

Based on the initial investigation of the BIR, the couple earned P50 to P100 million in the past two years which enabled them to buy luxury vehicles and built a mansion somewhere in Metro Manila.

BIR sources said the couple deleted their channel days after BIR Commissioner Caesar R. Dulay announced a crackdown against social media influencers (SMIs) who have been receiving earning huge sum of money from social media platforms like YouTube and Facebook by compelling them to pay taxes.

The couple, BIR officials said, had more than 11 million subscribers. The names of the pair were withheld pending the outcome of the investigation.

But the BIR said it will still run after the couple, saying deleting the social media channel will not excuse them from paying taxes.

Vloggers are classified as self-employed subject to 12 percent value-added tax if annual income is P3 million and more, eight percentage tax if less than the amount and tax exempt if not more than P250,000.

Dulay advised vloggers to be truthful in their income tax declaration to avoid facing tax evasion charges.

The article ended stating that social media influencers cannot hide their respective income because the “tax authorities of countries where the social media platforms are based are obligated to furnish the BIR with their salaries under a tax treaty agreement with the Philippines.”

For the newcomers reading this, the penalties for tax evasion has been updated this year in accordance to the Tax Reform for Acceleration and Inclusion (TRAIN) Act. A person found guilty of tax evasion, the financial penalty is now P500,000 to P10 million. Imprisonment will be 6 to 10 years.

In closing this piece, let me ask you readers: Do you believe that the BIR’s search for qualified vloggers or SMIs to tax is good for the Philippines? Do you believe that your favorite vloggers or SMIs have a legal obligation to pay taxes? Do you believe that the affected vloggers/SMIs will react by promoting/favoring the politicians or potential election candidates who oppose the current administration?

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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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673

Majority of Metro Manila Mayors support shift to MGCQ status by March 1, 2021

Majority of Metro Manila Mayors support shift to MGCQ status by March 1, 2021

carlocarrasco

President Rodrigo Duterte will have a big decision to make that will affect millions of residents and businesses in Metro Manila as a majority of the mayors voted to shift the metropolis from general community quarantine (GCQ) to modified general community quarantine (MGCQ) status by March 1, 2021, as based on a news release on Philippine News Agency (PNA) that got published just last night.

Here’s an excerpt from the PNA report:

The Metro Manila Council (MMC), composed of Metro Manila mayors and national government officials, has voted to support the proposed shift to the less restrictive modified general community quarantine (MGCQ) in Metro Manila.

“Ang karamihan po ng alkalde ng kalakhang maynila ay bumoto na MGCQ na po ang magiging posisyon nila pagdating sa Metro Manila (Most of the mayors in Metro Manila voted for having MGCQ as their position in Metro Manila),” Metropolitan Manila Development Authority (MMDA) chairman Benjamin “Benhur” Abalos Jr. said in a press conference on Thursday.

This, he said, will be sent to the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) and to President Rodrigo R. Duterte who will make the final decision on whether to implement eased quarantine restrictions by March 1.

He declined to provide the actual number of votes the proposal received but said that all Metro Manila mayors will support the decision.

Indeed, Abalos did not reveal the number of Yes and No votes but the Manila Bulletin reported that the score among Metro Manila mayors was 9-8 in favor of MGCQ.

To put things in perspective, Metro Manila still has yet to adjust to MGCQ status. Metro Manila is the hot spot of multiple cities where a lot of residents as well as business entities of varied sizes are located at. Right now, the nation needs a major boost to its economy even as there is still the need to be vigilant to avoid new COVID-19 infections. Lots of people in the metropolis remain unemployed and badly need income, and having Metro Manila shift to MGCQ status will help revive other businesses and pave the way for more people to get back to work.

It would be nice to see the Metro Manila Council research more and observe closely how other cities and provinces are doing while maintaining MGCQ statuses for months already.

On a grander scale, the Department of Trade and Industry (DTI) supports the recommendation to have the entire nation placed under MGCQ status by March. The said recommendation was made by Acting Socioeconomic Planning Secretary Karl Kendrick Chua in recent times. Below is an excerpt from the PNA report:

“It is about time we move to MGCQ after a year of lockdown,” Lopez told reporters in a Viber message Tuesday. “Lockdown was supposed to buy us time to prepare our health system and improve contact tracing and ‘Trace-Test-Treat’.”

Since June 2020, the National Capital Region (NCR) has not graduated from GCQ status, a stricter community quarantine measure than MGCQ.

It even went back to much stricter modified enhanced community quarantine (MECQ) from Aug. 4 to 18 last year as health care facilities in Metro Manila were overwhelmed due to the increasing number of Covid-19 cases during that period.

“As the Philippines recovers, Metro Manila has a very weak recovery, worse in employment and hunger recovery, and that means more urban poor. The damages to malnutrition and other health and social issues will be irreversible,” Lopez said.

NCR accounted for around 40 percent of the Philippine gross domestic product (GDP).

But Lopez added the reopening of more economic activities should depend on the Covid-19 statistics.

As pointed out by Trade secretary Lopez, Metro Manila is lagging behind in terms of recovery from the pandemic. Apart from joblessness and lack of income, poverty in the National Capital Region is an important problem to solve. The more people fall under poverty, the more local government units (LGUs) need to exert and spend their limited resources to support them.

Right now, the Metro Manila Council’s approval of shifting to MGCQ status will soon be dealt with by the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF-EID) and President Duterte.

In ending this, here are some videos about combatting the China virus.

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For more South Metro Manila community news and developments, come back here soon. Also say NO to fake news, NO to irresponsible journalism, NO to misinformation, NO to plagiarists, NO to reckless publishers and NO to sinister propaganda when it comes to news and developments. For South Metro Manila community developments, member engagements, commerce and other relevant updates, join the growing South Metro Manila Facebook group at https://www.facebook.com/groups/342183059992673