The BIR encouraged fintech companies to register and pay taxes.
BIR — The Bureau of Internal Revenue encouraged financial technology (fintech) companies to register and pay their taxes in order to avoid tax evasion charges.
BIR Commissioner Caesar R. Dulay recently made the appeal following reports that many of those financial technology companies have yet to register their operations to the tax bureau.
“Please don’t wait to be caught and avoid facing criminal charges and paying substantial penalties,” the BIR told those financial technology companies.
According to the Securities and Exchange Commission (SEC), financial technology companies include service providers and operators of play-to-earn platforms, electronic payments, digital banks, virtual asset companies, data companies, digital advisers, insurance technology firms, and online lending firms.
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Revenue Deputy Commissioner Marissa Cabreros said that a special team had been formed in order to evaluate and validate the tax compliance of those financial technology companies.
Cabreros also asked financial technology companies to visit the revenue district office or call telephone number 8538-32-00 on how to register and pay the appropriate business and income taxes.
She also said that there were existing tax laws and regulations governing financial institutions which were also applicable to financial technology companies.
Meanwhile, the Department of Finance (DOF) said last Friday that the tax bureau will strengthen tax regulations for the financial technology industry as online transactions continued to gain traction during the pandemic.
Aside from financial technology companies, the tax bureau was targeting social media influencers who weren’t paying correct taxes.
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