The BIR Just Issued A Memo For Social Media Influencers To Pay Taxes

The Bureau of Internal Revenue has issued a memorandum on taxation for social media influencers—and yes, they definitely have to do their part, too. Under Revenue Memorandum Circular (RMC) No. 97-2021 issued on Monday, August 16, the bureau outlined several measures for social media influencers to comply with, tax-wise. With the rise of personalities on platforms such as YouTube and Facebook, the memo was "issued to clarify the tax obligations of all social media influencers, individual or corporation."

Bureau of Internal Revenue reminds social media influencers to pay taxes

The Bureau of Internal Revenue (BIR) noted in the document that they "have been receiving reports that certain social media influencers have not been paying their income taxes despite earning huge income from the different social media platforms." They added that some have not even registered with the bureau. 

According to the memo, influencers typically earn income from sources such as the YouTube Partner Program (like your fave vloggers), sponsored social and blog posts, co-creating product lines, becoming a brand representative, and more. These would fall under Income Tax, which is separate from Business Tax. Foreign vloggers in the Philippines aren't exempt either. "For resident aliens, any income derived from Philippine-based content shall generally be taxable," said the memo.

And as for tax-evading influencers, the BIR is on the move. Internal Revenue Deputy Commissioner Arnel Guballa told Inquirer that they are "in the process of identifying" them. Fines for tax evasion range from P500,000 to P10 million, while imprisonment ranges from six to 10 years. 

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This story originally appeared on Spot.ph.

Minor edits have been made by the Cosmo.ph editors.

Source: Cosmo PH