BIR can now track influencers' earnings—Lumagui
At A Glance
- The Bureau of Internal Revenue (BIR) warned social media influencers to the consequences of tax evasion, emphasizing the agency's capacity to accurately assess the earnings of all individuals involved.<br>BIR Commissioner Romeo D. Lumagui Jr. said the bureau has methods to effectively obtain and verify the actual earnings of influencers. This includes collaborating with their online platform providers.<br>The BIR categorizes social media influencers as individuals who derive income from their digital posts, identifying them as self-employed individuals operating as sole proprietors, thereby subject to tax obligations.<br>Despite the BIR's best efforts, numerous reports have emerged indicating that many social media influencers have chosen to disregard the bureau's requests for voluntary compliance with tax laws.
The Bureau of Internal Revenue (BIR) has cautioned social media influencers considering tax evasion, emphasizing that the agency has mechanisms to accurately ascertain the earnings of all individuals involved.
BIR Commissioner Romeo D. Lumagui Jr. said the bureau has various methods to effectively obtain and verify the actual earnings of influencers by collaborating with their online platform providers.
"If others think they can hide it, they're mistaken. We have mechanisms in place to obtain information from these entities about their revenues, so we can access that data,” Lumagui told reporters on Wednesday, Jan. 24.
The BIR categorizes social media influencers as individuals who generate income from their digital posts, identifying them as self-employed individuals operating as sole proprietors.
Despite the BIR's best efforts, there have been numerous reports indicating that many social media influencers have chosen to ignore the bureau's requests for voluntary compliance with tax laws.
In 2021, the BIR launched a campagin to address tax non-compliance among influencers, targeting around 250 prominent social media personalities who were believed to have earned substantial incomes and received various benefits.
Under Revenue Memorandum Circular (RMC) No. 97-2021, influencers are required to pay their income and business tax obligations, including either a percentage tax or a value-added tax.
However, the BIR faced a setback after several influential figures promptly deactivated their social media accounts for various reasons following the issuance of RMC 97-2021.
Despite this challenge, the BIR assured that its information systems group remains capable of tracking the digital footprints of these influencers.