The Bureau of Internal Revenue (BIR) has just released a circular regarding the taxation of social media influencers. BIR defines social media influencers as individuals or corporations, receiving in cash or in-kind from any social media sites (YouTube, Facebook, Instagram, Twitter, TikTok, Reddit, Snapchat, etc.).
In the Memorandum Circular No. 97-2021, BIR says that it has been receiving reports that certain social media influencers have not been paying income taxes despite earning huge income.
The bureau also details that if your non-operating income does not exceed the VAT threshold of PHP 3,000,000 shall be taxed 8% ‘on gross sales or gross receipts and other non-operating income in excess of PHP 250,000’.
Moreover, it advises BIR offices to conduct a full-blown tax investigation against social media influencers. The circular ends stating that it takes effect immediately.
If you’re interested, you can read the full memo here.
Ram found his love and appreciation for writing in 2015 having started in the gaming and esports sphere for GG Network. He would then transition to focus more on the world of tech which has also began his journey into learning more about this world. That said though, he still has the mentality of "as long as it works" for his personal gadgets.
