BIR Collects ₱3.72 Million in Taxes From Social Media Influencers

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The Bureau of Internal Revenue (BIR) announced they have collected a total of ₱3.72 million in taxes from social media influencers for the year 2021. According to BIR Assistant Commissioner Clavelina Nacar, the amount collected this year is higher than in 2020 which is only ₱1.12 million in total taxes (income tax and VAT).

Following the surge of engagements in social media content due to the pandemic, the increase in the 2021 collection is about 332% higher than the previous year following the rise of social media influencers declaring their income and paying taxes. 

In August 2021, the BIR sent out a memo reminding bloggers and social media influencers to pay their taxes. This is due to the reports received by the bureau that certain social media influencers have not been paying their income taxes despite earning huge income.

“The Bureau of Internal Revenue (BIR) has 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. 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. Whatever may be the reasons, it is now the most opportune time to discuss the tax obligations of these social media influencers.” – BIR

Moreover, the BIR also offered a reward of up to ₱1 million from the government to those who will report a social media influencer who does not pay taxes. (Read More: Rep. Salceda to BIR: PH Tax Laws Must Adopt to Increasing Online Freelancers)

The BIR stated that social media influencers shall be liable to income tax and Percentage or Value-Added Tax unless exempted to the provisions of the National Internal Revenue Code (NIRC) of 1997, as amended, and other existing laws.

Social media influencers are classified for tax purposes as self-employed individuals or persons engaged in trade or business as sole proprietors, so their income is considered as business income. Social media influencers could be taxed from their income from: YouTube partner programs, sponsored social media and blog posts, display advertising, becoming a brand representative or ambassador, affiliate marketing, co-creating product lines, promoting own products, photo and video sales, digital courses, subscriptions, e-books, podcasts, and webinars.

The BIR said that the end goal is to raise revenues from their undeclared income and to remind social media influencers of their tax obligations under the law and that failure to pay taxes has possible consequences.

According to the BIR Circular, “social media influencers” includes 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.

This article is published on BitPinas: BIR Collects ₱3.72 Million in Taxes From Social Media Influencers

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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Shiela Bertillo

    BitPinas is the oldest blockchain and cryptocurrency news outlet that covers the Philippine blockchain and crypto scene. We are also writing general and international blockchain topics that are relevant to our audience.