The Bureau of Internal Revenue (BIR) has announced that electronic marketplace operators like Shopee and Lazada have begun withholding taxes from sellers starting July 15, 2024.
This move follows BIR’s regulation requiring online merchants earning over P500,000 annually to pay a 1-percent withholding tax on half of their gross remittances.
BIR Commissioner Romeo Lumagui Jr. clarified that this tax aims to level the playing field between online and physical stores, ensuring fair taxation across all business models.
The measure is expected to enhance tax compliance and expand government revenue amid the growing e-commerce sector, according to economic analysts.
Source: PhilNews24 | July 18, 2024
