Menu
The Bureau of Internal Revenue (BIR) in the Philippines has implemented a new tax measure targeting online sellers. As of December 2023, the BIR has formalized the imposition of a 1% withholding tax on online sales. This tax applies to one-half of the gross remittances made by digital marketplace operations and financial service providers to sellers for goods or services transacted through their platforms.
However, the BIR stipulated that this tax will not apply if the annual total gross remittances to an online seller have not exceeded PHP 500,000. This rule is also applicable if the cumulative gross remittances to an online seller in a taxable year remain below the PHP 500,000 threshold.
Revenue Regulations No. 16-2023, which details this tax measure, was signed by BIR Commissioner Romeo Lumagui Jr. and Finance Secretary Benjamin Diokno. This regulation will be effective 15 days after its publication in the Official Gazette or a newspaper of general circulation.
The new tax is part of the BIR’s broader efforts to ensure tax compliance among online sellers, aiming to create a level playing field between traditional brick-and-mortar retailers and digital marketplace sellers. Lumagui emphasized that this is not a new tax but a method to streamline tax collection from digital transactions.
#Top Tags COVID Covid-19 Technology Finance Investing Sustainability Economy
and receive a copy of The Crypto Cheat Sheet (PDF)
and NFT Cheat Sheet for free!
Comments are closed for this article!