social media influencers tax

Frazzled by the 2021 BIR Memo ? Social Media Influencers here’s an easy guide to paying tax or getting registered

Since the August 16, 2021, BIR Memo came out, the world of social media influencers, including, YouTubers, Tiktokers, Instagrammers, and even Bloggers were frazzled.

Read BIR Revenue Memorandum Circular No. 97-2021 here

I got a lot of private messages here and there worried about the target placed on their backs even if some of them merely earn a thing from it. Most of them are just happy to be given free things in exchange for “exposure” or write-up on their blogs, feature on the vlogs, or mention and appearances on their Instagram or Tiktok videos and photos.  This is the ex-deal thing which is a product for a photo, article, or video exposure.

The BIR memo was alleged to have been released right after a popular/trending couple Jamill got featured in a popular complaints TV show and decided to delete their YouTube channel with millions of followers.  Speculations said they deleted their account because they were afraid of getting chased by BIR for tax evasion.  The Jamill couple was said to be evading taxes people speculated but the couple said they did it for their relationship.

Anyway,  the stir-up in the community left everyone confused and afraid of the target o their backs because we know what this government can do to those who are against them, for example, ABS-CBN a media giant that has been around longer than the internet in the Philippines.

BIR Deputy Commissioner Marissa Cabreros however clarified that even if the couple has deleted their channels, their income can still be traced and whether or not they pay their taxes right or otherwise, is still for investigation.

Who needs to pay taxed and how much?

Social media influencer or not, everyone should pay taxes if they are earning .  The BIR also said they will go after foreign Youtubers earning money in the Philippines. 

A social media influencer that has a full-time job and is being an “influencer” as a side hustle should pay taxes from things earned from his/her side hustle and register as a mixed-income earner.

What to do first?

You need to get a Tax Identification Number first.   An individual should only have one (1) Tax Identification Number (TIN) in his lifetime, according to law.

For presently employed / previously employed individuals with existing TIN

If you are a mixed-income earner and have acquired a TIN from previous employment or are still employed, you should use the same number when you file/register as a mixed-income earner.  The tax identification number acquired from employment will be the same number that the individual will use upon the classification switch.

Go to the RDO (Revenue District Office) where you’re registered.  If you don’t know where you can call the BIR hotline You may inquire about your RDO code by calling the BIR’s Customer Assistance Division.

For security purposes, the BIR provides the RDO code over phone calls rather than email. When you call the BIR contact center, you’ll be asked for your full name, TIN, birthdate, mother’s maiden name, and other details to verify your identity.

 

Social media influencers, bloggers, vloggers, Youtubers, Tiktokers , Instagramers  you can classify yourself as mixed-income individual under the:

  • Artists, entertainers, and athletes – People who pursue arts or sports and make a living from it, including actors, singers, dancers, theater performers, movie directors, writers, coaches, etc.

 

For unemployed/ never employed and doesn’t have an existing TIN

For full-time social media influencers, vloggers, bloggers, Tiktokers, and anyone using social media to earn income, you can f:

The BIR Form 1901 is filed by self-employed individuals, whether single proprietors or professionals, to register with BIR as taxpayers and obtain their own TIN.

The same form is also used for BIR registration by mixed-income individuals or employees who are also running a business on the side; those who want to register their estates and trusts; and non-resident aliens engaged in trade/business.

  • Social media influencers, bloggers, vloggers, Youtubers, Tiktokers , Instagramers  you can classify yourself as mixed-income individual under the:
    • Artists, entertainers, and athletes – People who pursue arts or sports and make a living from it, including actors, singers, dancers, theater performers, movie directors, writers, coaches, etc.

TIN Application Using BIR Form 1902 (For Local and Alien Employees Earning Purely Compensation Income). 

The BIR Form 1902 is the tax form used to register new employees (Filipino or foreigner) who will earn purely from their salary/compensation income in the Philippines.

Most of the employers take care of their employees’ BIR registration. If this is the case, all you need to do is to fill out the form and submit the required documents. Once registered, you’ll be issued your permanent TIN.

How much should you pay?

 

Individuals who earn P250,000 or less annually are exempted from paying taxes. But registration must still be done.

What happens if brands give individuals items instead of cash?

This falls under the “ex-deal” terms and the BIR would base tax deductions on the value of the items.  So make sure to list everything you receive and declared value.

What happens if you don’t register and pay taxes?

Late registration, means penalties and charges.

Having paid your taxes and registering properly will make life easier for you.  You can proudly say you are a taxpayer and you can easily get an Income Tax Return (ITR) that you can use for future travel requirements.  It will make applying for your VISA easy and gives you more chances of getting approved.  More PH tax-paying things here.

BTW, when you are registered  , asided from Income Tax you will have to pay a Percentage Tax quarterly from 8% to 12% quarterly and an Annual Reegistration of Php500 every January.