Thailand
Philippines: Low-income social media earners tax exempt
THE Bureau of Internal Revenue (BIR) reminded social media influencers and play-to-earn gamers that they are exempt from paying income tax if they make less than P250,000 per year, but said they should still register with the agency.
BIR Deputy Commissioner Marissa Cabreros told the Laging Handa briefing on Tuesday that these people should not be afraid to register with the BIR because it is not the same as paying taxes.
“First, they must register because they are considered engaged in business. They should register immediately to avoid penalties,” she emphasized.
Cabreros also said that “small-time” earners need not be concerned because the Tax Reform for Acceleration and Inclusion law exempts persons with annual taxable incomes of P250,000 or less from paying personal income taxes.
“If your annual net income does not exceed P250,000, it is zero percent tax rate. So there is no income tax to pay.”
The BIR previously said in Revenue Memorandum Circular 97-2021 that it will pursue unregistered social media personalities and demand that they pay taxes on money earned from brand and product endorsements.
The bureau has taken action following accusations that certain social media celebrities are not paying their income taxes while receiving substantial quantities of money from various social media sites.
It said social media influencers “include all taxpayers, individuals or corporations, receiving income, in cash or in kind, from any social media sites and platforms (YouTube, Facebook, Instagram, Twitter, TikTok, Reddit, Snapchat, etc.) in exchange for services performed as bloggers, video bloggers or ‘vloggers’ or as an influencer, in general, and from any other activities performed on such social media sites and platforms.”
The BIR is still identifying these social media influencers, according to Cabreros. In the interim, people are encouraged to communicate voluntarily with the agency.
Meanwhile, earnings from play-to-earn games like “Axie Infinity” are also liable to income tax, according to the Department of Finance.
Cabreros said everyone who is connected to that platform is required to declare and pay taxes.
“At the end of the day, did you earn in the platform? If yes, you need to register. Reminder, we are not pertaining only to individuals, corporate entities, too. We were told that corporate entities also engage in these activities,” she noted.
The same rationale, according to the BIR official, applies to online sellers.
Source: https://www.manilatimes.net/2021/08/25/business/top-business/low-income-social-media-earners-tax-exempt/1812236