The Bureau of Internal Revenue (BIR) reminded content creators and social media influencers to register and pay their income taxes, amid reported tax non-payment despite huge earnings from social media platforms.
“There are also reports that they are not registered with the BIR or are registered under different tax types or lines of business, but are also not declaring their earnings from social media platforms for tax purposes,” the BIR said in a statement Monday (Aug. 16).
Like other workers, influencers are liable to pay income tax and percentage or value-added tax as stated under Revenue Memorandum Circular No. 97-2021, in accordance with the National Internal Revenue Code (NIRC) of 1997.
Tax expert Mon Abrea said content creators should not fear paying taxes since there are exemptions, especially for beginners who are not yet earning huge amounts.
“Kapag P100,000 and below ang kanilang revenue, marginal income earner ang tawag sa kanila, exempted pa sa tax ‘yun kapag di lumampas sa P250,000 ang kanilang income,” he said.
“Under [the] TRAIN [Tax Reform for Acceleration and Inclusion] Law, exempted pa sa income tax ‘yun. Ibig sabihin 1% lang babayaran nila quarterly. Hindi nila alam na, ‘ay ganoon lang pala’,” he added.
However, those earning over P3 million annually should pay quarterly income tax and a 12% VAT on top of their annual registration.
The bureau said it is investigating famous content creators who are not paying taxes. Those guilty of tax evasion will face six to 10 years of imprisonment and will be fined P500,000 to P10 million.
“For fairness’ sake, ang mga empleyado ay nakakaltasan ng buwis samantalang fixed ang income nila,” Abrea said.
“Ibig sabihin, ang mga content creators na mas malaki pa ang kinikita, para maging patas, dapat may ambag din at magbayad ng buwis,” he added. – Report from Naomi Tiburcio/AG-jlo
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