Online Sellers Who Earn Less Than P250,000 Yearly Tax Exempt But Still Required To Register

Manila – Many businesses and displaced workers shift to online selling just to cope-up daily needs and expenses amid community quarantine restrictions due to coronavirus pandemic. As the online selling industry took off the Bureau of Internal Revenue (BIR) asks the online sellers whos enjoying this opportunity to register their business, declare their previous transactions, and to pay taxes.

 

This is following the recent Revenue Memorandum Circular No. 60-2020 signed by Commissioner of Internal Revenue Caesar R. Dulay on June 10, 2020, saying all persons conducting business in any form of electronic media must register, declare transactions, and pay tax.

 

The memo ordered not just sellers or merchants, but also payment gateways, delivery services, internet service providers, and other facilitators which directly involved in their business operations.

 

BIR said, “All those who will register their business activity and/or update their registration status not later than July 31, 2020 shall not be imposed with penalty for late registration.”

 

Once the business is registered, they must issue Sales Invoice or Official Receipt, on every sale of Goods or Services, keeping of book of accounts and other accounting records of business transactions, and filing and paying of required tax returns in due time.

 

READ: BIR urge the booming online business industry to register and pay taxes

 

However, in a televised press briefing today, June 11, 2020, Presidential Spokesperson Harry Roque and National Economic and Development Authority acting secretary clear that only those among business owners whose yearly net income falls behind P250,000.00 are exempted in paying the taxes under the Tax Reform for Acceleration and Inclusion or TRAIN Law.

 

“So ‘yun po ang sagot, if your online business net income does not exceed P250,000, e wala naman kayong babayaran. So magrehistro na po.”

 

“(“So the answer is, if your online business net income does not exceed P250,000, you will not pay anything. So register now. “)

 

Presidential spokesperson Harry Roque also said that this is one of the initiatives of the government as it missed its tax collection this year due to the pandemic.

 

“Humihingi lang po ako ng pagintindi sa ating publiko dahil kung wala naman tayong laman sa kaban ng bayan, wala tayong mga ayuda, wala tayong mga tulong na maibibigay habang nandito ang banta ng COVID.” 

(I am just asking for the public’s understanding because if we do not have the funds, we have no financial assistance, we will have no help to provide while the COVID threat exists.)

 

 

Sources: 

  1. https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2020%20RMCs/RMC%20No.%2060-2020.pdf
  2. PTV4 (People’s Television Network Chanel 4)
  3. Photo by StockSnap on Pixabay: 1.8 million+ Stunning Free Images to Use Anywhere (https://pixabay.com/photos/credit-card-payment-transaction-926862/)
Josh Salcedo
Author: Josh Salcedo

I am Josh, the man behind Frontonet, a Freelancer, Tech-Enthusiast, and Web Developer. I spend my day writing articles, developing & designing websites for me and my client.

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