According to the BIR, the couple earned PHP 50M-100M from vlogging and deleted their channel to avoid paying taxes.
According to the Bureau of Internal Revenue (BIR), a couple, who reportedly raked in multi-million pesos from vlogging, abruptly deleted their channel in what the BIR officials believed to be an attempt to avoid paying taxes.
Based on BIR’s initial investigation, the couple earned PHP 50 million to PHP 100 million in the past two years which allowed them to built a mansion somewhere in Metro Manila and to buy luxury vehicles as well.
According to a report on Manila Bulletin, BIR sources said that the couple deleted their channel days after BIR Commissioner Caesar R. Dulay officially announced a crackdown against social media influencers (SMIs) who had been earning huge sum of money from social media platforms such as YouTube and Facebook by compelling them to pay taxes.
The couple, according to BIR officials, had more than 11 million subscribers.
READ ALSO: BIR Issues Memo To Remind Social Media Influencers Of Their Tax Obligations
According to the BIR, the names of the couple were withheld pending the outcome of the investigation.
However, the BIR said that it will still run after the couple and said that deleting the social media channel will not excuse them from paying their taxes.
Based on a report, vloggers were classified as “self-employed” subject to 12% value-added tax if annual income was PHP 3 million and more, 8% tax if less than PHP 3 million, and tax-exempt if not more than PHP 250,000.
Dulay then advised vloggers to be truthful in their income tax declaration in order to avoid facing tax evasion charges.
He also said that social media influencers can’t hide their income as tax authorities of countries where the social media platforms were based were obligated to furnish the BIR with their salaries under a “Tax Treaty Agreement” with the Philippines.
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