BIR to run after skincare entrepreneur who 'flexes' earning billions on social media
The Bureau of Internal Revenue (BIR) said it's running after a skincare entrepreneur who allegedly failed to pay the right taxes following claims of earning billions from online selling.
During the BIR's 120th anniversary celebration, Commissioner Romeo Lumagui Jr. said the bureau raided the warehouses of the entrepreneur, whom he didn't name, and found they weren't registered, according to GMA News.
“Tatlong warehouse niya ang unregistered," Lumagui is quoted as saying.
“Nagfe-flex sa social media na bilyon-bilyon ang kinikita… sinasabi bata pa lang, bilyon na ang kinikita… tapos bilyonaryo na, pero hindi nagbabayad ng buwis," he added.
Lumagui said they already issued the entrepreneur a subpoena, while the BIR will file a tax violation complaint against the entrepreneur.
The commissioner warned that many businesses have unregistered warehouses, which house many products for online selling.
Lumagui urged business owners to register and pay their taxes.
As of July 15, 2024, the BIR has required online sellers to pay withholding tax, or the amount a business holds which it sends directly to the government on behalf of suppliers or employees.
It is in accordance with Revenue Regulation No. 16-2023, which states that half of the e-commerce operators and digital financial services providers' gross remittances to the sellers are subject to a 1% creditable withholding tax.
The BIR defines “gross remittances” as the total amount an e-marketplace operator or a digital financial services provider receives from a buyer or consumer for the goods and services sold by or paid to the seller or merchant through the e-marketplace operator's platform.
The BIR said the 1% withholding tax shall not be collected if the "annual total gross remittances to an online seller for the past taxable year has not exceeded P500,000,” and “if the cumulative gross remittances to an online seller in a taxable year has not yet exceeded P500,000.”
Lumagui previously explained that withholding tax is not a new form of tax.
"It's merely a system of taxation where taxes are collected at source," he said, "which will be credited against the total income tax liability of the sellers/merchants."