The Department of Trade and Industry (DTI) has exempted small business owners who earn P250,000 and below annually from registering their business with the Bureau of Internal Revenue (BIR), according to Trade Secretary Ramon Lopez.
Since the start of quarantine, many civilians have turned to hobbies and passion projects—and with all that time and effort exerted, it’s only expected that they make profit off their products. Many of us customers and friends of these small business owners are gladly enjoying purchasing the fruits of their talents.
Lopez told ABS-CBN’s Teleradyo that they are still encouraging small business owners to register with the BIR, stating that this may benefit them in the future. “We also believe in the principle na kung gusto mong lumaki ang negosyo mo, kailangan magregister ka,” he said.
Last week, June 11, the BIR issued a circular that required online sellers and all businesses conducted online to register and pay taxes. This also applied to businesses of payment gateways, delivery channels, internet service providers and other facilitators.
[READ: PSA, online sellers: You now need to register and pay taxes for your business]
Lopez clarified BIR’s aforementioned circular that small businesses have always been excluded from tax registration, but registration is recommended for consumer protection and online purchase. He also reminded the public to exercise caution when buying from online sellers.
Header photo courtesy of Bench Accounting on Unsplash
Get more stories like this by subscribing to our weekly newsletter here.
Read more:
PSA, online sellers: You now need to register and pay taxes for your business
Would you shift to biking for tax perks, food vouchers?
3 out of 10 Filipinos are obese. The government’s solution? 10-20% junk food tax