In this time of pandemic, mostly, income generating factor is the process of online selling via apps and social media platforms. Even before pandemics, online selling is the popular income generating activity via contacts in social media by using stable internet connection, gadget like, smartphone, laptop, tablet etc., friend lists, a small amount of capital and a little bit of patience.
At this time of everybody were finding solutions to have food for their daily lives which all the savings was lost during quarantine, Bureau of Internal Revenue was issued Revenue Memorandum Circular No. 60-2020 which mandated to all persons doing and earning income on any manner or form, specifically those who are into digital transactions through the the use of any electronic platform and media, and other digital means.
In this particular, person doing online business must have to register their business whether individual or non-individual including those persons who have TIN but not yet registered their business.
Tax to be implemented will applicable to those earning P250,000, “Pag P250,000 po and above po na taxable income ay subject to tax. Pero ‘pag below P250,000 po exempted po ‘yan”, clarified by National Economic and Development Authority (NEDA) Secretary Karl Chua.
According to Presidential Harry Roque, “Habang tumataas po yung pangangailangan po natin sa COVID-19, siyempre po hahanap at hahanap tayo ng pamamaraan para ma-increase yung ating intake ng taxes.”
Online seller must to register their business by providing these requirements;
There is no question to comply with the people obligations to pay taxes as part of compliance of being a Filipino citizens. But the process in the Philippines to monitor and/or provide concrete policies in online business is enough? Even application for TIN ID of the individual is too hard to comply. How they so sure that the online seller cannot earn income above Php 250,000.00 annually? Which literally, online seller mostly have a great market online to have a better income.
Is it one way of how to maximize the collection of the bureau for the COVID victim as what they says, or just another part of collection for the greedy in the position while the increase of uncollected taxes from POGO and other business have no actions.
Online sellers mostly mothers, who are looking for their daily income for their daily expenses raging to one peso (Php 1.00) to ten pesos (Ph 10.00) additional per item sold. If this Php 10.00 will be taxed? how much the seller earn from the items?
This is the Philippines! My beloved Philippines!
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