Header Ads

BIR warns social media influencers: Pay your taxes

The Bureau of Internal Revenue (BIR) issued a memorandum to remind social media users, who earn money online, to settle their taxes.
BIR warns social media influencers: Pay your taxes
File photo: BIR logo

Social media influencers need to pay their taxes—BIR

In a memorandum released Monday, signed by BIR Commissioner Caesar Dulay, the agency emphasized the tax obligations of social media influencers.

The agency said that they received reports that some social media influencers "are not registered with the BIR or are registered under different tax types or line of business but are also not declaring from social media platforms for tax purposes."

Whatever may be the reasons, it is now the most opportune time to discuss the tax obligations of these social media influencers, the memorandum read.

It said those who generate earnings as bloggers and video bloggers on social media sites are considered social media influencers.

The social media sites stated in the memorandum were YouTube, Facebook, Instagram, Twitter, TikTok, Reddit, and Snapchat.

They are also liable for income tax, percentage or value-added tax, and business tax, the BIR added.

The BIR also said these social media influencers are classified for tax purposes as self-employed persons engaged in trade or business as sole proprietors.

Social media influencers, meanwhile, are allowed to deduct all ordinary and necessary expenses paid during the taxable year—including film expenses, computer equipment, subscription and software licensing fees, internet and communication expenses, and office supplies, among others.

Source: BIR

No comments

Powered by Blogger.