MANILA – Malacañang on Thursday, claried that only online sellers earning above Php 250,000 will need to pay taxes, but all online business should still register their records with the Bureau of Internal Revenue.
“If your online business net income does not exceed P250,000, then you don’t have to pay.” Roque said.
“If your online business net income does not exceed P250,000, then you don’t have to pay.”Roque
According to Presidential Spokesperson Harry Roque, backs BIR decision to require all online merchants to declare their profits from selling merchandise online. This also includes delivery platforms.
Online sellers must also find a way to issue receipts and invoice similar with physical store.
A surge of online selling activities were recorded as people finds a way to earn extra income amid the the COVID-19 lockdown. Acting Socioeconomic Planning Secretary Karl Kendrick Chua said that while existing tax laws also applies to online selling. There are also laws under the tax reform act that gives exemptions to businesses.
Referring to the Tax Reform for Acceleration and Inclusion Act, annual earnings less than ₱250,000 are tax exempt.
However, Roque admitted that the funds from Covid-19 are primarily from the collection of BIR and Customs hence the government are looking for ways to increase the tax intake. So far, the government have missed the tax collection targets for this year. Several lawmakers have suggested that instead of taxing the people, they should prioritized collecting tax dues of Philippine Offshore Gaming Operators or POGOs.