Tag: individual taxpayers

BIR softens approach on social media influencers

BIR softens approach on social media influencers

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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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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

BIR confirms lower income tax rates for individual taxpayers effective on January 1, 2023

BIR confirms lower income tax rates for individual taxpayers effective on January 1, 2023

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For those of you living and working here in the Philippines, be aware that starting January 1, 2023, lower tax rates will charged on individual taxpayers as confirmed by the Bureau of Internal Revenue (BIR), according to a recent GMA Network news report. Now is a good time to approach a certified expert on taxation if you want to see how this upcoming development will affect you.

To put things in perspective, posted below is the excerpt from the GMA Network news report. Some parts in boldface…

Individual taxpayers will be charged lower tax rates starting next year, the Bureau of Internal Revenue (BIR) said Friday.

Individuals earning purely compensation income, including non-business/non-profession related income and sole proprietors, “can look forward to a higher take-home pay in 2023,” according to the BIR.

The taxman said the lower income tax rate is pursuant to Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law, which took effect on January 1, 2018.

Starting January 1, 2023, those with annual taxable income below P250,000.00 are still exempt from paying personal income tax, while the rest of taxpayers, except those with taxable income of more than P8 million, will have lower tax rates ranging from 15% to 30% by 2023.

To maintain progressivity, the BIR imposed a 35% tax rate on top individual taxpayers with annual taxable incomes exceeding P8 million, up from 32% previously.

The income tax on the individual’s taxable income shall be computed based on the following schedules, effective January 1, 2023, and onwards:

The taxation reference from GMA’s news report.

Compared to the income tax rates imposed during the initial implementation of the TRAIN Law in 2018, the new annual income tax rates for individuals significantly decreased by 5% for those with taxable income of more than P250,000.00 up to P2,000,000.00, while a 2% decrease in tax rate was noted for those with taxable income of more than P2,000,000.00 up to P8,000,000.00.

The above article ended stating that employers must use the revised withholding tax table to calculate the withholding taxes on their employees’ compensation income taking effect on January 1, 2023.

Let me end this piece by asking you readers: What is your reaction to this new development? When was the last time you consulted with a tax expert for insight about your income tax returns? Do you think this new development will boost the national economy as a whole somehow in 2023?

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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Thank you for reading. If you find this article engaging, please click the like button below and also please consider sharing this article to others. If you are looking for a copywriter to create content for your special project or business, check out my services and my portfolio. If you want to support my website, please consider making a donation. 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/.