MANILA, Philippines – The Bureau of Internal Revenue (BIR) announced it has extended the deadline for business registration of online sellers or those earning income by selling and transacting through digital and other electronic platforms.
In a Revenue Memorandum Circular (RMC) No. 75-2020 issued on Wednesday, the BIR said the July 31 deadline stated in the previously issued RMC 60-2020 “for registration of the business activity and/or updates with no penalty imposition is hereby extended to August 31.”
“In addition, those who shall voluntarily declare their past transactions subject to pertinent taxes and pay the taxes due thereon when declared and paid on or before the said date shall not be subject to the corresponding penalty for late filing and payment,” the circular read.
The bureau, through RMC 60-2020 dated June 1, notified all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax compliant.
The order covers partner sellers/merchants, payment gateways, delivery channels, internet service providers and other facilitators.
The BIR warned those who will be found later doing business without complying with the registration/update requirements, and those who failed to declare past due taxes/unpaid taxes “shall be imposed with the applicable penalties under the law, and existing revenue rules and regulations.”
The bureau earlier clarified that the measure is not meant to squeeze out money from online sellers but merely encourage them to register their business.
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