On August 16, 2021, the Bureau of Internal Revenue released the Revenue Memorandum Circular No. 91-2021.
The BIR released this RMC with the reports that called their attention regarding certain social media influencers who are not paying their taxes despite their massive earnings. The issuance of this Circular will serve as a reminder of their legal obligations in the government and the possible consequences of not paying it.
Who are Social Media Influencers?
Social media influencers are those individuals or corporations who receive income through various social media platforms – such as Facebook, Youtube, Tiktok, etc. – in return for their services rendered from the activities conducted on it.
Tax Obligations of Social Media Influencers
The income of all Social Media Influencers, received in cash or in kind, from rendering their service through social media platforms are generally subjected to regular income tax, unless these are already subjected to final tax or exempted by the law.
Influencers can also be subjected to business tax which could be either;
- Value Added Tax (12%)
- Percentage Tax under Sec 116 (1% – effective up until June 30, 2023)
But wait, there’s more…
The BIR has already indicated in RMC 60-2020 that any online transactions should be regulated and registered to the BIR. In addition to it, influencers must also maintain their books of accounts, and comply with other BIR regulations, as failure to accomplish these requirements may result in significant penalties.
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