BIR RELIES ON VOLUNTARY INCOME DECLARATION FROM SOCIAL MEDIA INFLUENCERS

The Bureau of Internal Revenue (BIR) has been monitoring social media influencers since 2021, relying primarily on voluntary income declarations for tax compliance. At a recent House hearing, BIR officials explained that they face challenges in monitoring income from platforms like YouTube and Facebook, as influencers often receive payments from foreign sources. Lawmakers questioned why the BIR is not proactively obtaining data from platforms like YouTube, but the agency clarified that it uses international tax agreements to verify income. Influencers who underreport income or fail to pay taxes could face heavy penalties, including fines and imprisonment. The BIR also pledged to submit a report on the number of influencers taxed since 2021.