The Bureau of Internal Revenue (BIR) has admitted that collecting taxes from social media influencers may be a time-consuming process due to the complexities of the digital landscape.
BIR Assistant Commissioner Jethro Sabariaga stated during a tax symposium that the agency is actively engaging with influencers to encourage voluntary compliance.
No specific revenue targets were provided by Sabariaga, but it is worth noting that the Philippines is considered the social media capital of the world, with influencers boasting vast followings
Industry estimates indicate that influencers with a million followers could earn between P100,000 and P150,000 for a single Instagram post. Those with fewer followers can earn between P50,000 and P80,000, while content creators with less than six-digit follower counts command rates between P25,000 and P40,000.
Eleanor Roque, tax advisory head at accounting and auditing firm P&A Grant Thornton, suggested that the BIR currently relies on voluntary compliance since the income of social media influencers predominantly comes from foreign-based tech giants.
Roque also proposed that the BIR could send letters to social media personalities, urging them to register with the bureau and adhere to tax regulations. For now, voluntary compliance appears to be the primary approach in ensuring that influencers fulfill their tax obligations.
Source: PhilNews24 | November 3, 2023
