The Bureau of Internal Revenue (BIR) released a memorandum on Monday, Aug. 16, reminding social media influencers to declare their taxes for the revenue they receive online.
RMC No. 97-2021 begins with the bureau reporting that “certain social media influencers have not been paying their income taxes despite earning huge income from the different social media platforms.”
They added that “there are also reports that they are not registered with the BIR or are registered under different tax types or line of business but are also not declaring their earnings from social media platforms for tax purposes.”
The memo then explains that online Influencers may be liable for both income tax and business tax.
The YouTuber Partner Program, sponsored posts, being a "brand ambassador," affiliate marketing, courses, and podcasts are just a few examples that the BIR has given in terms of income taxability. Receiving and posting free products also constitutes as income tax as an influencer “must declare the fair market value of such products as income.”
Meanwhile, allowable deductions may also be subtracted from the gross income such as film equipment, software licensing fees, internet expenses, office supplies, and more.
Influencers who do not comply with the memorandum will receive a P500,000 to P10M fine.
Amid the release, influencer and vlogger Angel Dei Peralta said on Instagram stories that she’s been receiving messages regarding the BIR memo, to which she shared a photo of her own personalized official receipt.
“I do pay my taxes. Sheket sa heart pero ganun talaga.”
“Eto resibo, literal."
Banner photo from Unplash / Steve Gale and BIR Logo