Revenue Memorandum Order No. 29-2021
Monitoring and Verification of the Tax Compliance of Online Merchants / Social Media Influencers / Other Businesses Operating in Digital Platforms
Business transactions nowadays are executed and facilitated using internet platforms such as Facebook, Instagram, YouTube, Airbnb, Lazada, Shopee, etc. Regardless of the manner of doing business or of earning income, taxpayers have the obligation to register, file their tax returns, and pay whatever taxes are due the government. The conduct of business through a digital platform does not exempt anyone from their tax obligations under the law.
As early as 2013, the Bureau of Internal Revenue (BlR) already issued Revenue Memorandum Circular (RMC) No. 55-2013 reiterating taxpayers’ obligations in relation to online business transactions, including online retailing through virtual shopping malls, online marketplaces, webstores, and similar-websites (collectively referred to as “online stores”). Recently, with the popularity of social media influencers (SMIs) or those earning income in exchange for services performed as bloggers, video bloggers.and other activities performed on social media, the BIR issued RMC No. 97-202I to remind them of their tax obligations. Through these issuances, the BIR emphasizes that the advances introduced by the internet will not hinder its enforcement of tax laws against persons earning income using any of the digital and social media platforms.