Online Sellers Earning P250k Below Annually are Exempted from the New Tax Memo
ONLINE SELLERS – earning at least P250,000 and below are now exempted from the Tax issued by the BIR, Malacañang on Thursday said.
Malacañang Palace has made it clear that online sellers of less than P250,000 will not be taxed annually, the National Economic Development Authority (NEDA) has agreed.
“Maliwanag po iyan na kapag less than P250,000 ang net income, wala po kayong babayaran [na tax] kaya magrehistro na po kayo,” Presidential spokesperson Harry Roque said in news briefing.
Based on the report of Inquirer, acting NEDA secretary Karl Kendrick Chua supported this saying “Kung less than P250,000 annually po ang net income, exempted po ‘yan sa pagbabayad ng tax.” The policy is stated in the Tax Reform law.
They made the statement following the release of Memorandum Circular No. 60-2020 of the Bureau of Internal Revenue (BIR), which regulates businesses using digital or electronic platforms or online sellers to register and pay tax.
Following the increase in transactions with products via the internet, the number of complainants has also increased, according to the Department of Trade and Industry data. From January to May, an average of 9,044 was received online complaints, compared to 2,457 in the same period in 2019.
According to the data, from April to May of the enhanced quarantine community, there were 8,059 total online complaints from the online sellers and to the customers. Meanwhile, 985 were from January to March.
READ ALSO: Online Sellers, Freelancers are Now Required to Pay Tax- BIR
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