‘Weird’ and ‘necessary’—social media influencerson theBIR memo
Social media influencerssaid that thereminding them to pay taxes comes at a suspicious time, days after the Commission on Audit (CoA)flagged “various deficiencies”in the Department of Health’s (DoH) funds worth P67.3 billion— butthat the memo wasalso necessary.
, an actor who has more than 400,000 followers in her monetized Instagram account, said that it was “weird” that the BIR released a clarificatory memo following theDoH’sbudgeting issue: “It’s weirdnani-releaseyungganyanafter nag-releasenayungDoHnamaybudgetna’di na-pu-putinto usenangmaayos.”
“I’m sure that I’m paying taxes,” she said over the phone, adding that she has a personal accountant to handle her tax affairs and that it’s important to pay taxes regardless of where they go. “Kungayawmakulong,kailanganmagbayadngtax.”
Social media influencers can make P30,000 per post—ormuchmore depending on their clout.
, a Generation-Z YouTuber with 287,000 subscribers, acknowledged that the BIR had reason to release the memo.
“Unfortunately, I don’t think most influencers pay their taxes, so I thought the reminder was necessary on BIR’s end,” she said. “I personally am registered and pay my taxes on my social media earnings,” she added.
The personal finance enthusiast toldýthat she pays her taxes through, an online tax compliance tool.
CLARIFICATIONS NEEDED
An expatriatevloggerwith over 100,000 subscribers on YouTube,meanwhile,said it is interesting how the BIR declared that content created in the Philippines is now considered “Philippine-derived income.”
“I’m speaking with my attorney now about the implications of this Memorandum on my tax liability,” he said.
While he welcomes the affirmation that vlogging and social media influencing is a legitimate occupation for resident aliens, healso wants a clarificationon the correct process of being registered with the BIR and/or the Department of Trade and Industry (DTI).
“Can a foreigner be the 100% owner of a sole proprietorship related to social media? Or should I register as a profession?” he asked in an email to ý. “I want to comply with the laws of the country, but it is difficult when one government department says one thing, and another is not on the same page! I really hope that the BIR and DTI can clarify that.”
In a statement released Aug. 19, the Creator and Influencer Council of the Philippines (CICP) similarly welcomed the Circular, as it gave a general overview of all the tax rules and regulations applicable to the organization’s members.
CICP, founded by digital veteran Donald Lim, is composed of more than a hundred influencers, including Erwann A. Heussaff, Carlo Ople, and JJ M. Disini, Jr.
“It is imperative among us, as citizens, to do our part by paying proper taxes. We view the Circular as an opportunity to exemplify the importance we give to paying taxes, and show others that we view it as a patriotic duty that any responsible citizen should fulfill,” the CICP said.
CICP added that it hopes the BIR introduces mechanisms to ease the burden of tax compliance for influencers, as well as everyone else who conducts their business digitally.
In addition to welcoming dialogue with BIR, the CICP also said it is creating a Code of Ethics “centered around content standards, fair dealing, transparency, social responsibility, and compliance with law.”
PROFESSIONAL CATEGORY
Social media influencers can earn on platforms such asTikTok, YouTube, and Instagram,where revenuesare proportional to an influencer’sfollowers and views.Tobe accepted intoYouTube’s PartnerProgram,and 4,000 watch hours in thelast 12 months.
that the average YouTuber generates $7.60 per 1,000 views with 45% of that revenue going to Google.
If the earnings qualify to pay taxes, it is only right to start paying for them, said Lisa Marie M. Sicad, who runs the vlog .“Influencers fall under the professional category, like doctors, real estate brokers, etc.,” shetoldýin a Facebook message.
She also pointed out the practical aspect of being registered with the BIR: “Most big brands work with those who can issue receiptsdin, masmadali[as it’seasier] for them to do the accounting. It’s a win-win-winfor everyone if the influencer wants to earn more through brand deals.”
— Patricia B. MirasolandBrontë H. Lacsamana
