THE Bureau of Internal Revenue (BIR) aims to impose a withholding tax of one percent from online sellers by December or January of next year to cash in on the ever-growing e-commerce industry in the Philippines.
BIR commissioner Romeo Lumagui Jr. said they are now in the final phase of drafting the new revenue regulation after consulting with online platforms, which people use to sell goods and services, and online payment channels.
Once released, the new regulation would impose a withholding tax of one percent on one-half of the gross remittances of the online platform providers to their partner sellers or merchants.
“Si buyer nagbabayad kay platform. Si platform ang magbabayad kay seller. So bago i-remit ni online platform kay seller kung magkano ‘yung dapat niyang makuha, less ‘yung commission niya, magwi-withhold siya ng one percent of one-half of the revenue,” explained Lumagui.
He added: “Ang mga online platforms at ‘yung mga payment channels… sila ang magbabayad sa BIR ng tax,” he added.
Lumagui also noted that the withheld tax would be creditable.
“Dahil napatawan kayo ng withholding tax na one percent on half of the gross revenues, ibabawas ngayon ‘yun sa payable ninyo,” he said.
But the BIR assured small online businesses that that withholding tax will not apply if the annual total gross remittance to an online merchant for the past taxable year has not exceeded P250,000.
“So that also addresses the issues raised by ‘yung mga maliliit na kumikita sa online na sasabihin nila, maliit na nga lang kinikita ko dyan, bubuwisan pa. So hindi po kayo mabubuwisan pagka maliit na negosyante po ‘yan. ‘Yan ang aming pinapangako,” said Lumagui.
To accurately capture the scope of the e-commerce industry, Lumagui appealed to online platforms to require a certificate of registration with the BIR from online merchants before accrediting them on their platform.
“We’re in constant communication with all these online platforms because we need their assistance, we need their help, we need their commitment to really make sure that all online sellers and all their accredited sellers are registered with the BIR,” he said.
Lumagui said this would also create a more level playing field for brick-and-mortar stores.
“Kaya rin naman tayo nag-i-impose nitong withholding tax kasi makikita natin kung gaano kalaki na ang negosyo ng online selling. Napakarami na rin talagang malaki ang kinikita and it’s also unfair for the brick-and-mortar stores na nagbabayad na nga ng mga renta, ang dami nilang expenses doing their business. Tapos sa online wala masyadong overhead expenses and nakakatakas pa sila sa tax,” he said.
Lumagui also said they will also implement an “Online Kandado” against platforms.
“Meaning we will shut down the site, if the sellers are not registered,” he said.
The Marcos administration has also been pushing to impose a value-added tax on digital services to further increase government revenues. (ABS-CBN News)
