Revenue Memorandum Circular (RMC) 97-2021, which focuses on taxation of income received by social media influencers, was issued last Aug. 16, 2021. Since then, the Bureau of Internal Revenue (BIR) has continued to double its efforts in strengthening the tax compliance of all taxpayers deriving income online.
Recently, Revenue Memorandum Order (RMO) 29-2021 was issued to provide concrete steps on the monitoring and verification of the tax compliance of such taxpayers through the creation of a Special Task Force in every regional office and large taxpayers’ office to:
1. Gather and collate all relevant information and create a database of all social media influencers and online sellers, including the properties being leased out by online lessors;
2. Determine whether the subject taxpayers are registered with the BIR; and,
3. Evaluate the subject taxpayers’ compliance on payment of the annual registration fee, issuance of sales invoices and official receipts, keeping of books of accounts, filing of tax returns and mandatory attachments, and payment of taxes due thereon.
The information and findings gathered from the evaluation will be submitted to the respective regional director or the assistant commissioner for large taxpayers’ service through a monthly accomplishment report every fifth day of the following month. The same report will be forwarded by the regional director or the assistant commissioner for large taxpayers’ service to the BIR commissioner every 10th day of the following month.
In case deficiencies are noted, the Special Task Force will recommend for the issuance of a letter of authority to the revenue district office where the taxpayer belongs. Upon issuance of a letter of authority to the subject taxpayer, the BIR can commence the usual tax assessment process.
Non-compliance with the directives outlined in RMO 29-2021 shall subject the concerned revenue personnel to administrative sanctions pursuant to existing laws, rules and revenue issuances.
P&A Grant Thornton
Certified Public Accountants