Here’s the warning from the BIR to social media influencers
BIR vs SOCMED INFLUENCERS – The Bureau of Internal Revenue has issued a reminder to social media influencers who are avoiding paying their taxes.
According to the BIR, there could be consequences for the influencers who engage in such tax evasion. In a statement, BIR Commissioner Romeo D. Lumagui Jr. mentioned that the agency has methods to track and verify the earnings of influencers, including their collaboration with social media platform providers.
The BIR stated that social media influencers are categorized as individuals who earn income from their digital posts, recognizing them as self-employed individuals operating as sole proprietors and subject to tax obligations.
This warning from the BIR stems from reports that many social media influencers have chosen to disregard the agency’s requests for voluntary compliance with tax laws. “If others think they can hide it, they’re mistaken. We have mechanisms in place to obtain information from these entities about their revenues, so we can access that data,” said Lumagui.
It’s worth noting that in 2021, the BIR launched a campaign to address tax non-compliance among influencers, targeting at least 250 well-known personalities in social media believed to have earned significant income and received various benefits.
Under Revenue Memorandum Circular (RMC) No. 97-2021, influencers are required to fulfill their tax obligations on income and business, including either a percentage tax or a value-added tax. The BIR assures that they will continue to monitor the digital footprint of influencers.
Meanwhile, the Bureau of Internal Revenue is a government agency responsible for assessing and collecting internal revenue taxes, fees, and charges in the Philippines. The BIR plays a crucial role in the country’s fiscal system, ensuring that individuals and businesses comply with tax laws and regulations. The agency is under the Department of Finance and is tasked with implementing tax policies to generate revenue for government programs and services.
