Those who make money on digital platforms should “ensure that their businesses are registered pursuant to the… Tax Code, as amended, and that they are tax-compliant,” the Bureau of Internal Revenue said in a recent memo which faced backlash from online sellers who only make minimal earnings from their digital businesses.
Presidential Spokesman Harry Roque then clarified that online businesses earning less than P250,000 per year are exempted from paying said taxes.
“If your online business net income does not exceed P250,000 eh wala po talaga kayo ibabayad (you don’t have to pay),” Roque said.
The BIR has given online sellers until July 31 to register to avoid penalties.
“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,” said the BIR.