Jack Hughes
94 posts
Nov 28, 2022
10:49 PM
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The BIR issued this RMC 97-2021 in response to reports that drew attention to certain social media influencers who were not paying taxes despite their high incomes. The issuance of this circular serves as a reminder of their legal obligations to the government and the possible consequences of non-payment.
Who are social media influencers?
Social Media Influencers are individuals or companies who, through various social media platforms - such as Facebook, Youtube, Tiktok, etc. - in return for the services they provide through their activities on these platforms.
Tax obligations of social media influencers.
The income of all social media influencers received in cash or in kind from the provision of their service through social media platforms is generally subject to regular income tax, unless they are already subject to final taxation or exempt from taxation by law.
Influencers may also be subject to business tax, either
• Value Added Tax (12%)
• Percentage tax under Section 116 (1% - valid until June 30, 2023).
But wait, there's more...
The BIR has already indicated in RMC 60-2020 that all online transactions must be regulated and registered with the BIR. In addition, influencers must also maintain their accounting records and comply with other BIR regulations, as failure to do so can result in significant penalties.
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