ONLINE sellers will be charged a one percent withholding tax by December or January of next year to cash in on the ever-growing e-commerce industry in the Philippines, the Bureau of Internal Revenue (BIR) said.
According to BIR Commissioner Romeo Lumagui, Jr. they are currently preparing the draft for the new revenue regulation.
He said that they had consulted online platforms, to which many Filipino used to sell goods and services, and online payment channels.
After finalized and released, the new regulation would impose a withholding tax of 1 percent on one-half of the gross remittances of the online platform providers to their partner sellers or merchants.
“Si buyer, nagbabayad kay platform. Si platform ang magbabayad kay seller. So bago i-remit ni online platform kay seller kung magkano yung dapat niyang makuha, less yung commission niya, magwi-withhold siya ng 1 percent of one-half of the revenue,” Lumagui explained.
“Ang mga online platforms at yung mga payment channels… sila ang magbabayad sa BIR ng tax,” he added.
Lumagui also said that the withheld tax would be creditable.
“Dahil napatawan kayo ng withholding tax na 1 percent on half of the gross revenues, ibabawas ngayon yun sa payable ninyo,” he said.
The BIR had assured small online businesses that that withholding tax will not apply, should the annual total gross remittance to an online merchant for the past taxable year has not exceeded P250,000.
“So that also addresses the issues raised by yung mga maliliit na kumikita sa online na sasabihin nila, maliit na nga lang kinikita ko dyan, bubuwisan pa. So hindi po kayo mabubuwisan pagka maliit na negosyante po yan. Yan ang aming pinapangako,” said Lumagui.
Menrica Tambis, an online seller, said that while they are generally not against the BIR order, the timing is off since they expect a lot of buyers this holiday season.
“There is nothing wrong about it except the timing,” she said.
Menrica lamented that this is the only time of the year that they can get a good earning.
“Don’t get me wrong. I support government efforts. But really the timing is not good,” she said.
