BIR Commissioner Romeo D. Lumagui Jr. warned that online platforms like Facebook and Shopee face potential shutdown if they continue allowing unregistered sellers, stressing that only registered businesses should operate on these platforms.
Lumagui’s statements came during a media briefing on July 17, highlighting the BIR’s stance on enforcing Revenue Regulation 16-2023, which mandates online marketplaces to withhold one percent income tax from sellers’ gross remittances.
The regulation exempts sellers with annual gross remittances under P500,000.
Implementation began on July 15, with a 90-day extension for digital financial services providers (DFSPs).
Despite missing revenue targets for the first half of 2024, the BIR aims to boost collections through stricter enforcement, including tax stamps on vape products, to meet its full-year goal of P3 trillion.
Source: PhilNews24 | July 18, 2024
