The Bureau of Internal Revenue (BIR) has launched an all-out investigation against monetized social media influencers (SMIs) or vloggers who do not pay taxes from their huge income.
BIR Commissioner Caesar R. Dulay ordered regional directors and district officers nationwide to go after unregistered SMIs, or vloggers residing in their respective jurisdictions.
The BIR chief said in Revenue Memorandum Circular No.97-2021 that SMIs are liable to be charged with tax evasion if they refuse to settle their tax liabilities.
SMIs receive income either in cash or in kind from social media platforms like YouTube, Facebook, Instagram, Tiktok in exchange for video advertisements and display of products and services featured on their respective channels.
BIR said these are classified as self-employed individuals subject to 12 percent value-added tax (VAT) if annual income is over P3 million and eight percentage tax below the threshold.
Likewise, the online content creator is required to declare the fair market of the free products received for his or her services as part of his income.
Dulay ordered the investigation after receiving reports that a lot of vloggers who earn a hefty sum from their social media exploits simply do not declare their earnings to escape payment of taxes.
He said the audit is part of a bigger program of the agency in enhancing tax collection from this new source.