BIR to ‘educate’ social media influencers on tax obligations

THE Bureau of Inside Income (BIR) seeks to carry a dialogue with social media and web celebrities this 12 months to “educate” them about their tax obligations as a part of its measures to realize its P2.6-trillion assortment goal this 12 months.

BIR Commissioner Romeo D. Lumagui maintained that social media influencers, vloggers and content material creators have to be taxed since they’re incomes revenue from their respective platforms and contents.

Lumagui emphasised that a few of these personalities could also be simply “unaware” of their tax obligations that’s the reason they aren’t capable of file the mandatory revenue taxes.

Lumagui famous that maybe there was one thing mistaken with the messaging of the earlier tax officers that made social media stars “scared” of complying with their tax tasks.

“Some influencers simply don’t know their tax obligations. What we would like is a dialogue with them that these are your obligations as social media influencers—you’re incomes from no matter you’re doing, so that is your accountability as revenue earners,” he advised reporters in a latest interview.

“We need to be pleasant with them, don’t be scared. We’ll help you,” he added.

The BIR plans to carry the dialogue throughout the first half of the 12 months. Lumagui famous that dialogues are efficient instruments to encourage people and even teams to pay their taxes accurately.

For instance, he cited the case with vape associations and lotto operators whereby the bureau carried out separate dialogues with them to make clear their tax duties.

Lumagui additionally disclosed that they see social media influencers as a automobile to encourage extra Filipinos to pay their taxes accurately and punctually given their attain.

“I feel that a technique of creating individuals adjust to tax obligations is to teach the individuals as a result of tax is a really sophisticated subject and it isn’t straightforward to grasp,” he stated.

“That’s why what I would like is to essentially clarify, laymanize the whole lot so they’ll perceive the obligations and tasks in order that when the whole lot is simplified and you might be unable to conform, its more than likely you’ve got an intent to evade,” he added.

Lumagui additionally disclosed that they’re doubling their efforts on bettering tax collections from on-line companies, particularly these using Lazada and Shoppee within the nation.

“We’re in fixed communication with platforms, as a result of its a problem to observe. We’re pondering of how to method it as a result of in the event you have a look at particular person on-line sellers, it’s fairly tough,” he stated.

“It’s a problem. Hopefully we are able to do so much to handle these new ideas, platforms and naturally consider an environment friendly approach of going about tax assortment,” he added.

In 2021, the BIR issued Income Memorandum Round 97-2021 concerning the taxation of any revenue earned by social media influencers. Pundits famous that the round was reiteration of the BIR’s earlier Income Memorandum Round 60-2020 that outlined the obligations of individuals incomes by way of any types of digital media.

Picture credit: Ann Rodchua |