Only 105 social media influencers have registered with BIR, according to DOF.
DOF — The Department of Finance said that only 105 social media influencers have registered with the Bureau of Internal Revenue (BIR).
On Friday, the Department of Finance said that more than half of the initial list of tax-delinquent social media influencers have yet to start the sign-up process with the Bureau of the Internal Revenue despite the crackdown.
According to Finance Assistant Secretary Dakila Elteen M. Napao, only 105 out of 250 top-earning social media celebrities or content creators who were raking in profits through social media channels have registered with BIR as of September 15, 2021.
When asked about the BIR number, Napao told reporters that he’s sure they’re looking into those currently registered first and will probably be expanding their search to those who still haven’t registered.
The tax bureau, according to Napao, was scrutinizing the social media platform economy. Napao also noted that those who continued to ignore their obligations will be looked into and examined by the tax bureau.
“There is the tool in the tax code, whereby the BIR can get information from the third party [to help it track additional sources of income],” Napao said.
The DOF official added that the tax bureau wasn’t leaving any stone unturned.
READ ALSO: BIR Investigating Initial 250 Social Media Influencers To Look Into Tax Compliance
According to Napao, social media influencers who deleted their accounts and personalities who were based abroad but were earning in the Philippines via online platforms will be examined by the BIR.
Earlier, BIR Deputy Commissioner Arnel Guballa reported to the Department of Finance that Letters of Authority (LOAs) for the conduct of investigation were already issued to certain social media influencers found to be “top earners” in their field.
According to the tax bureau, social media influencers who earned money from their posts on digital media were classified as “self-employed” individuals or persons engaged in trade or business as “sole proprietors”.
Their earnings were generally considered as “business income”, as defined under BIR Revenue Memorandum Circular No. 97-2021 issued last August 16.
Under BIR RMC 97-2021, social media influencers (SMIs) should pay percentage tax and income tax or, if applicable, the value-added tax (VAT) as mandated under the National Internal Revenue Code (NIRC) and other existing laws.
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