Resolution urging BIR to suspend tax memo on online sellers filed at Senate

Robie de Guzman

MANILA, Philippines – Senator Risa Hontiveros on Tuesday said she has filed a resolution seeking for the suspension of the Bureau of Internal Revenue (BIR) memo that mandates online sellers to register and pay taxes amid struggles of finding alternative means to earn money during the coronavirus disease (COVID-19) pandemic.

In a statement, Hontiveros said she recently filed Senate Resolution No. 453 which urges the BIR to suspend the memo’s implementation “until the end of the year.”

The resolution also sought for a Senate investigation into the agency’s efforts to subject online sellers to taxation and registration requirements, which was criticized by many for being “ill-timed and insensitive.”

“Kung hahabulin ng pamahalaan ang malalaking digital entrepreneurs, dapat siguraduhing hindi nito pahihirapan ang maliliit na online seller na dumidiskarte ngayon para kumita. Our revenue policies should be sensitive to the struggles of Filipinos trying to make ends meet in these difficult times,” Hontiveros said.

Malacañang earlier clarified that not all online sellers will need to pay taxes but should still register their business and update their tax records. The Palace also stressed that those earning less than P250,000 annually are tax exempt, referring to a provision of the Tax Reform Acceleration and Inclusion (TRAIN) Law which states that only income above P250,000 is subject to taxes.

The Department of Trade and Industry also backed BIR’s move, saying the registration requirement only aims to build a registry of online sellers.

While Hontiveros noted Malacañang’s clarification, she said the registration requirement may still cost online sellers thousands of pesos in fees.

“It is best for everybody’s interests if the BIR suspends the implementation of the memo until December 31, 2020, while government agencies review and craft better policy guidelines on how online entrepreneurs should register or pay taxes,” she said.

The senator also pushed for a digital platform for BIR registration instead of requiring applicants to physically troop to its offices.

“Magkaroon muna ng digital platform for registration. Requiring people to congregate at the BIR’s offices likewise exposes them to the health risks associated with COVID-19 and might also lead to further spreading the disease and prolonging the pandemic,” she said.

She also reiterated her earlier call for the government to prioritize the collection of tax duties of Philippine Offshore Gaming Operators (POGO) rather than individuals who are making temporarily living via social media channels to weather the economic effects of the pandemic.

“It is only proper for the BIR to ensure that big digital businesses earning millions in profits – such as Philippine Online Gaming Operators (POGOs) – are paying proper taxes as required by law. Pero sana, huwag na pahirapan ang mga kababayan nating dumidiskarte para makakain,” Hontiveros said.

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