'We will do the investigation so that they would pay the necessary corresponding tax on their earnings,' says BIR Deputy Commissioner Arnel Guballa
The Bureau of Internal Revenue (BIR) on Thursday, September 16, announced it will be investigating an initial 250 social media influencers to check if they are registered taxpayers and have been paying the correct taxes.
In a report to Finance Secretary Carlos Dominguez III, the BIR said it issued letters of authority to select influencers found to be "top earners" in their field.
"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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The BIR earlier issued Revenue Memorandum Circular No. 97-2021, which specified that influencers should pay income tax and percentage tax or, if applicable, value-added tax.
Influencers include individuals who derive income from YouTube's partner program; those who engage in sponsored social media posts, blogs, and advertising; brand ambassadors; and affiliate marketers.
The circular also includes influencers who receive free goods in exchange for promotions. The tax for in-kind goods will be calculated according to the value of the products given.
Moreover, income treated as royalties from another country will be included in the computation of influencers' gross income.
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