Jun 20, 2020

A week after the Bureau of Internal Revenue (BIR) released a memorandum requiring online businesses to register and pay taxes, the list of digital merchants required to register was released.

Aside from online sellers, BIR Deputy Commissioner Arnel Guballa added that independent creatives who earn money through digital ads will also be taxed. In line with Revenue Memorandum 60-2020, they are required to register with the bureau not later than July 31.

The list of businesses required to register includes:

  • e-Commerce platform providers
  • Internet retailers of consumer goods
  • Digital service, membership, and subscription
  • Digital transaction through the use of electronic platforms and media
  • Online blogging, filmmakers, earning from advertising gained from their online channels
  • Ride-hailing services for food, transportation, delivery, or merchandise

Fortunately, small-scale businesses and creatives need not worry. The Department of Trade and Industry (DTI) has exempted businesses earning P250,000 and below annually from paying income tax. 

[READ: DTI says small businesses exempted from tax registration—and it’s what they deserve]


Header photo by ConvertKit on Unsplash

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TAGS: BIR blogging creatives DTI filmmakers nolisoli online businesses DTI Revenue Memorandum 60-2020