11 million subscribers but delete channel to avoid tax

[Jollygoodfellow]

Beats me. If you were making around 50 million to 100 million with 11 million subscribers to a youtube channel then wouldn't it be better to pay tax and keep your income making chanel going? 

Filipino couple who allegedly earned up to Php 100M shuts social media channel to avoid taxes

A couple who earned millions of pesos from video blogging (vlogging) has shut their social media channel to avoid paying taxes.

The Bureau of Internal Revenue (BIR) officials said that initial investigation found that the couple earned Php50 to Php100 million in the past two years.

The money was used by them to buy luxury vehicles and build a mansion somewhere in Metro Manila.

According to the BIR sources the couple “deleted” their channel.

This came in reaction to the announcement of action by BIR Commissioner Caesar R. Dulay against social media influencers who have been earning huge sums of money from social media platforms like YouTube and Facebook but failed to pay taxes.

The channel had more than 11 million subscribers and their names have not been disclosed till the outcome of BIR’s investigation.

The BIR said “deleting the social media channel” doesn’t exempt them from paying taxes.

Vloggers who are classified as self-employed are subject to 12 percent value-added tax for an annual income of Php3 million and have to pay eight percent tax for lesser amounts while they are exempt till Php250,000 earning.

Dulay has issued an advisory asking vloggers not to hide their income tax declaration to avoid payment of tax evasion charges. (AW)

https://filipinotimes.net/latest-news/2021/08/24/filipino-couple-who-allegedly-earned-up-to-php-100m-shuts-social-media-channel-to-avoid-taxes/

[Guy F.]

There must be more to this story than what meets the eye. Maybe they want to avoid scrutiny because there's something to hide.

[BrettGC]

Seems a bit like "I'm taking my ball and going home" to me.  I'm not sure how hard it is to hide their direct Youtube income but I imagine their bank statements will reveal most of it. 

I wonder if they'll go after all the sources of revenue other than the ads and donations on live events:

• Patreon or the like - an external provider not related to Youtube that a viewer actually joins for a monthly fee certain perks eg: Some content only uploaded to Patreon
• Affiliates - This video is bought to you by <insert company name here>
• Product sales - They actually do a bit of a sales pitch on a product or service and supply a discount code linked to them and the product or service

Again, all of the above will show on their bank statements I guess. 

 

Edited August 27, 2021 by BrettGC

[Old55]

7 hours ago, Guy F. said:

There must be more to this story than what meets the eye. Maybe they want to avoid scrutiny because there's something to hide.

I'm with Guy on this. It would be interesting to know the whole story. 

[hk blues]

Personally, I wish I had to pay 100x more tax than I do!  

[Jollygoodfellow]

12 hours ago, BrettGC said:

I wonder if they'll go after all the sources of revenue other than the ads and donations on live events:

Quote

Income declarations are mandatory from sources like Youtube’s partner program; sponsored social and blog posts; display advertising; serving as a brand representative or ambassador; affiliate marketing; co-creating products; the promotion of their own products; photo and video sales; digital courses, subscriptions and electronic books; and earnings from podcasts and webinars.

August 17

BIR says tax registration, filing for influencers voluntary for now; mandatory filing in the works

THE BUREAU of Internal Revenue (BIR) said tax registration for social media influencers is currently voluntary, though it is studying how to compel the industry to disclose its income more regularly.

The BIR will come up with process to “crack down” on influencers in order to make them pay tax on their income, Deputy Commissioner for Operations Arnel SD. Guballa said in a text message Tuesday.

The process for voluntary registration and payment was outlined in Revenue Memorandum Circular (RMC) No. 97-2021 issued late Monday.

The circular cited reports that “certain social media influencers have not been paying their income taxes despite earning huge income from the different social media platforms.”

It said some influencers are not registered with the bureau, or are registered as engaged in another line of business while failing to declare income from social media platforms.

“This circular is therefore issued to clarify the tax obligations of all social media influencers, individual or corporations, with the end goal of raising revenues from their undeclared income and at the same time, reminding them of their obligations under the law and of the possible consequences of their failure to pay taxes,” according to the circular.

The BIR classifies social media influencers as individuals or companies generating income, both in cash or in kind, from social media platforms like Youtube, Facebook, Instagram, Tiktok, Reddit and Snapchat.

They are entitled to the option of paying income tax or business tax, either in the form of percentage tax or value-added tax.

Income declarations are mandatory from sources like Youtube’s partner program; sponsored social and blog posts; display advertising; serving as a brand representative or ambassador; affiliate marketing; co-creating products; the promotion of their own products; photo and video sales; digital courses, subscriptions and electronic books; and earnings from podcasts and webinars.

The agency has no estimate as yet on the social media influencer population and the potential revenue to be collected from them, according to Mr. Guballa.

The BIR is currently studying the segment’s revenue potential, and registrations will help improve such projections, according to Undersecretary Antonette C. Tionko, head of the revenue operations group of the Finance Department.

“BIR recently issued an RMC on influencers requiring them to register and pay their taxes. That’s one of the measures we are adopting because I don’t know if they pay tax… They can (register) online,” Ms. Tionko told reporters Tuesday.

The BIR also reminded online businesses to register with the bureau and pay their taxes when it issued RMC 60-2020 in June 2020.

“It seems that the recent RMC issued by the BIR involving social media influencers is trending online and has generated mixed reactions — some bashing the BIR but mostly positive feedback from netizens,” Maria Lourdes P. Lim, the tax managing partner of Isla Lipana & Co., the PwC Philippine member firm, said in a mobile phone message Tuesday.

Ms. Lim said the circular serves as a reference for online influencers on their tax compliance obligations, since it provides details on the earnings that have to be declared and which ones are subject to tax.

“I don’t think the social media influencers are being singled out, there are also other industries which the BIR is looking at,” she said.

“If there are concerns about social media influencers who have not yet registered with the BIR, it would be advisable that they do so as soon as possible and pay their fair share of the taxes to avoid adverse implications if they are subsequently audited by the BIR. They can also consider seeking professional help for assistance,” she added. — Beatrice M. Laforga

https://www.bworldonline.com/bir-says-tax-registration-filing-for-influencers-voluntary-for-now-mandatory-filing-in-the-works/

[Old55]

Eventually BIR will be coming after Philippines related forums?

[Jollygoodfellow]

32 minutes ago, Old55 said:

Eventually BIR will be coming after Philippines related forums?

Not if there owned from persons residing overseas and hosted on a server not in the Philippines I doubt it.

[OnMyWay]

12 hours ago, Jollygoodfellow said:

August 17

BIR says tax registration, filing for influencers voluntary for now; mandatory filing in the works

THE BUREAU of Internal Revenue (BIR) said tax registration for social media influencers is currently voluntary, though it is studying how to compel the industry to disclose its income more regularly.

The BIR will come up with process to “crack down” on influencers in order to make them pay tax on their income, Deputy Commissioner for Operations Arnel SD. Guballa said in a text message Tuesday.

The process for voluntary registration and payment was outlined in Revenue Memorandum Circular (RMC) No. 97-2021 issued late Monday.

The circular cited reports that “certain social media influencers have not been paying their income taxes despite earning huge income from the different social media platforms.”

It said some influencers are not registered with the bureau, or are registered as engaged in another line of business while failing to declare income from social media platforms.

“This circular is therefore issued to clarify the tax obligations of all social media influencers, individual or corporations, with the end goal of raising revenues from their undeclared income and at the same time, reminding them of their obligations under the law and of the possible consequences of their failure to pay taxes,” according to the circular.

The BIR classifies social media influencers as individuals or companies generating income, both in cash or in kind, from social media platforms like Youtube, Facebook, Instagram, Tiktok, Reddit and Snapchat.

They are entitled to the option of paying income tax or business tax, either in the form of percentage tax or value-added tax.

Income declarations are mandatory from sources like Youtube’s partner program; sponsored social and blog posts; display advertising; serving as a brand representative or ambassador; affiliate marketing; co-creating products; the promotion of their own products; photo and video sales; digital courses, subscriptions and electronic books; and earnings from podcasts and webinars.

The agency has no estimate as yet on the social media influencer population and the potential revenue to be collected from them, according to Mr. Guballa.

The BIR is currently studying the segment’s revenue potential, and registrations will help improve such projections, according to Undersecretary Antonette C. Tionko, head of the revenue operations group of the Finance Department.

“BIR recently issued an RMC on influencers requiring them to register and pay their taxes. That’s one of the measures we are adopting because I don’t know if they pay tax… They can (register) online,” Ms. Tionko told reporters Tuesday.

The BIR also reminded online businesses to register with the bureau and pay their taxes when it issued RMC 60-2020 in June 2020.

“It seems that the recent RMC issued by the BIR involving social media influencers is trending online and has generated mixed reactions — some bashing the BIR but mostly positive feedback from netizens,” Maria Lourdes P. Lim, the tax managing partner of Isla Lipana & Co., the PwC Philippine member firm, said in a mobile phone message Tuesday.

Ms. Lim said the circular serves as a reference for online influencers on their tax compliance obligations, since it provides details on the earnings that have to be declared and which ones are subject to tax.

“I don’t think the social media influencers are being singled out, there are also other industries which the BIR is looking at,” she said.

“If there are concerns about social media influencers who have not yet registered with the BIR, it would be advisable that they do so as soon as possible and pay their fair share of the taxes to avoid adverse implications if they are subsequently audited by the BIR. They can also consider seeking professional help for assistance,” she added. — Beatrice M. Laforga

https://www.bworldonline.com/bir-says-tax-registration-filing-for-influencers-voluntary-for-now-mandatory-filing-in-the-works/

I wonder if some of the Filipino vloggers are paying their taxes?  My kids watch a girl called Bug on LittleBigToys and they are filthy rich.  One recent episode informally showed the grounds of their mansion, in QC, I think.  Wow!  I think they were rich before You Tube but now they are one of the top You Tubers in the world.

Strange thing is, the father died last year, in his 30s.  If any of you single guys are looking for a rich widower.....