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Taxing social media influencers remains a challenge for BIR 

by Deanna Macaranas

THE Bureau of Internal Revenue has admitted that collecting taxes from online influencers remains a challenge. 

According to BIR Assistant Commissioner Jethro Sabariaga, the country’s largest revenue collection agency is still in contact with social media influencers in order for them to fulfill their tax commitments to the government. 

“We’re engaging the social media influencers and we’re trying to win their side,” Sabariaga said. 

Sabariaga said the process might take time.

 “In the engagement process, the more that you can ask them to do voluntary compliance, that’s the better process instead of being unfriendly to them. It might take some time but that is what we’re doing,” he said. 

The BIR is facing an obstacle after some influencers with a large fanbase deactivated their social media accounts after the implementation of RMC 97-2021. 

According to the BIR, social media influencers are the people who earn through monetized digital posts. 

It is estimated that an influencer with a million followers could earn a revenue ranging from P100,000 to P150,000 through a single Instagram post. Meanwhile, influencers with less than a million followers can get paid between P50,000 and P80,000. 

Content creators who have a following of six digits  can obtain a rate ranging between P25,000 and P40,000.  

However, social media influencers and content creator’s incomes are not only limited to digital posts as they can also earn through affiliate marketing, product lines, digital courses, webinars, podcasts, and subscriptions.  

The BIR issued letters of authority (LOAs) to the influencers whose name belonged to the top earners. The purpose of LOA is for revenue officers to examine the taxpayer’s book to determine accurate tax liabilities. 

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