The Bureau of Internal Revenue (BIR) is now investigating an initial list of 250 social media influencers to look into their tax compliance.
Citing a BIR report to Finance Secretary Carlos Dominguez III, the Department of Finance (DOF) said Wednesday the BIR has already issued Letters of Authority (LOAs) for the conduct of investigation to certain social media influencers found to be “top earners.”
The taxman noted that social media influencers earning money from their posts on digital media are classified as self-employed individuals or persons engaged in trade or business as sole proprietors, the DOF said.
As such, their earnings are generally considered as business income, as defined under the BIR’s Revenue Memorandum Circular (RMC) No. 97-2021 issued last August 16.
“We encourage them to register, and then we have the profiling of over 250 personalities. We will do the investigation so that they would pay the necessary corresponding tax on their earnings,” BIR Deputy Commissioner Arnel Guballa said in his report to Dominguez.
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Under RMC 97-2021, issued in August, social media influencers should pay income tax and percentage tax or, if applicable, the value-added tax (VAT), as mandated under the National Internal Revenue Code (NIRC) and other existing laws.
Based on the Circular, social media influencers are defined as those who derive their income from the following sources:
- You Tube Partner Program
- sponsored social and blog posts
- display advertising ...
Read Full Story: https://www.gmanetwork.com/news/money/economy/803485/bir-probes-initial-250-social-media-influencers/story/
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