The Bureau of Internal Revenue (BIR) just dropped a game-changing update. If you’re raking in more than PHP500,000 yearly, a 1% withholding tax is on the horizon.
According to the freshly minted BIR Revenue Regulation 16-2023 (released on December 21), this tax tweak targets half of the gross remittances from electronic marketplace operators and digital financial services providers to the sellers.
RELATED: BIR Considers Withholding Tax on Digital Payments
Now, if you’re selling goods or services on platforms like online shops, food delivery apps, or booking accommodations, this might affect you.
But, BIR’s got your back if your annual total gross remittances stay below PHP500,000. No tax worries there! And guess what? If you’re cruising on a lower income tax rate, consider yourself exempt.
The new BIR rules kick in 15 days after they’re in the news or the Official Gazette. So stay tuned!
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