BIR Orders Monitoring and Verification of Tax Compliance of Online Merchants, Social Media Influencers and Other Businesses Operating in Digital Platforms

The Bureau of Internal Revenue has issued an Order directing its concerned offices to monitor and verify the tax compliance of online merchants, social media influencers, and other businesses operating through digital or online platforms. The BIR also ordered the creation of a Special Task Force in every revenue regional office and in the Large Taxpayers Service to aid the concerned offices in monitoring and verifying the tax compliance of the subject taxpayers.

 

In the Order, the BIR reiterated that the conduct of business online or through a digital platform does not exempt anyone from the corresponding tax obligations under the Law. Income earners, regardless of the manner of doing business, or of earning income, have the obligation to register, file their tax returns, and pay whatever taxes are due the government. In consonance, therefore, of its previous pronouncements in RMC No. 55-2013 and RMC No. 97-2021, which reiterated taxpayers’ obligations for online business transactions through online stores and for income received in exchange for services performed by social media influencers, respectively, the BIR issued the present Order directing Revenue District Offices under all Revenue Regions and the LT Divisions/LT Audit Divisions under the Large Taxpayers Service to monitor and verify the tax compliance of online merchants, social media influencers, and other businesses operating through digital or online platforms who are registered or residing within their jurisdictions.

 

The Order also provides for the creation of a Special Task Force in every revenue region to aid the concerned offices in monitoring and verifying the tax compliance of the subject taxpayers. The Special Task Forces’ duties, among others, are gathering relevant information on the subject taxpayers and their activities and determining which among the subject taxpayers are or are not registered with the BIR.

 

The Order also provides for a mechanism regarding voluntary declarations made by the subject taxpayers.

 

The full Memorandum Order can be accessed here.