Plenty of people were unhappy when the Bureau of Internal Revenue (BIR) recently announced that online sellers had to register, declare previous transactions, and pay their taxes before the end of July.
The BIR’s memorandum circular stated, “This Circular is issued to give due notice to all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant.”
LOOK: BIR issues memorandum, asking online sellers to register (and declare past transactions) before July 31. | @CarolynBonquin pic.twitter.com/Rmi3nYOPkU
— CNN Philippines (@cnnphilippines) June 10, 2020
Many Filipinos were unhappy since they had started online businesses after the COVID-19 pandemic hit the country, where many lost their jobs and others’ jobs were put on hold.
Today, Malacanang has clarified that online businesses earning less than Php250,000 per year will be exempted from paying taxes. Presidential Spokesman Harry Roque said, “If your online business net income does not exceed P250,000 eh wala po talaga kayo ibabayad [you don’t have to pay].”
The BIR added: “All those who will register their business activity and/or update their registration status not later than July 31, 2020 shall not be imposed with penalty for late registration.”
Do you know any online sellers who will be affected by this?
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