MANILA, Philippines — Efforts of the Bureau of Internal Revenue to tax online services will target media streaming platforms such as Netflix and Amazon and wholesale suppliers such as Alibaba, but not small online sellers, an official of the tax bureau said on Wednesday.
Online sellers earning less than P250,000 a year are exempted from paying income tax, Deputy Commissioner for Operations Arnel Guballa said in an interview with Teleradyo.
“Ang gusto talagang habulin ng BIR ay ‘yung malalaking merchants or sellers sa online kagaya ng Netflix, Amazon, Alibaba. Doon po talaga kami papunta sa malalaki, hindi po sa mga kababayan natin na maliliit,” Guballa said.
(The BIR is after big online merchants or sellers like Netflix, Amazon, and Alibaba. We are after big firms and not to our countrymen engaged in small online selling operations.)
“Ang gusto lang po namin malaman, makita ang data ng total population na engaged sa online selling, kahit maliliit pero not necessarily we will tax the marginal income players,” he added.
(We only want to know and have the data on the total population of people engaged in online selling, even if they are small businesses, but it does not necessarily mean we will tax the marginal income players.)
The BIR earlier said it issued Memorandum Circular 60-2020 “to give 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.”
“These shall include not only partner sellers or merchants, but also other stakeholders involved such as the payment getaways, delivery channels, internet service providers, and other facilitators,” the bureau said.
Those who will register their business activities or update their registration status not later than July 31 shall not be imposed with a penalty for late registration.
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