Earning From Digital Ads Will Be Taxed (e.g., Signature Campaign)

[Maus0728]

Greeting Everyone,


Headline: .BIR requires bloggers, filmmakers, content creators earning from digital ads to register

The Bureau of Internal Revenue (BIR) has recently released the Revenue Memorandum 60-2020,  requiring those conducting businesses through the use of any electronic platforms, media, and other digital means to register to the BIR. Yesterday, BIR Deputy Commissioner for Operations Arnel Guballa had identified which digital merchants are required to register. Among those in the list, are bloggers, filmmakers, content creators, and other independent creative professionals earning from digital ads.

• e-Commerce platform providers
• Internet retailers of consumer goods
• Digital service, membership, and subscription
• Digital transaction through the use of  electronic platforms and media
• Online blogging, film maters, earning from advertising gained from their online channels
• Ride-hailing services for food, transportation, delivery, or merchandise

The taxation for bloggers, content creators, and other professionals earning through digital ads is similar for online merchants as well, and those earning below PHP 250,000 a year should not pay taxes but are still required to file their annual Income Tax Returns.

I don't know you guys but I am a bit bothered to the imposition of levying tax on online businesses plus nag aalala din ako kung possible din ba na mapatawan ng tax yung mga high payee signature campaign participants especially to those people whose estimated earnings are above ₱ 6,000 per week. Keep in mind na yung mga online businesses na may ₱ 250,000 above per year can be subjected to the collection of tax by legal authorities.

Sumagi lang sa isip ko kasi we are included in the bracket of advertising from an online channel (bitcointalk) though naisip ko din na possible na hindi tayo maapektuhan ng tax kasi most of us are now aware of using SPV (Simple Payment Verification)and/or Non-Custodial bitcoin wallet whereas it can dramatically increase your privacy in terms of making a transaction lalo na kung ang user eh may alam sa basic functionalities like Coin Control. Plus, the use of bitcoin mixer can drastically improve the anonymity of every bitcoin transaction, dagdag mo pa kung gagamit ka ng different OS such as Tails or Linux equipped with TOR or hardened Firefox browser.

Medyo exaggerated lang yung sa privacy part pero important naman yan kung privacy conscious individual kayo when it comes to your bitcoin transaction. Any thoughts?

For every reader's reference, here is what the Philippine Tax Code says:

Code:

SEC. 23. General Principles of Income Taxation in the Philippines. - Except when otherwise provided in this Code:

(A)  A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines;

(B)  A nonresident citizen is taxable only on income derived from sources within the Philippines;

(C)  An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income derived from sources within the Philippines: Provided, That a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade shall be treated as an overseas contract worker;

(D)  An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within the Philippines;

(E)  A domestic corporation is taxable on all income derived from sources within and without the Philippines; and

(F)  A foreign corporation, whether engaged or not in trade or business in the Philippines, is taxable only on income derived from sources within the Philippines.

[samcrypto]

I don't think they can tax all those participants of Signature campaign since this is a decentralized market and its hard for BIR to collect our datas (matrabaho ito). If the digital ads will be taxed, then I'm sure hinde tayo kasama doon so wag muna magpanic. Though maari tayong magkaroon ng income tax thru this market pero mukang malayo pa tayo sa ganoong sitwasyon.

Besides, yung ginagawa naten is hinde naman negosyo and we can't register since di nga tayo business. Pero wag paren tayo syempre magpakampante and if magkaroon man ng batas, ay mas mabuti nang sumunod kesa mag karoon pa ng problema later on.

[mirakal]

BIR would not know if we are earning income in signature campaign as we are not employees with the business we are promoting.
In short, there is no employer-employee relationship and we don't even know that businesses whom we work with signature campaign are abiding with the tax laws in their countries.

There is no need to worry, though the general rule is to pay taxes when you earn, but if you can hide it, then why pay.
Besides, signature campaign is not a job, it's only a privilege, anytime they can stop the campaign, they can do it without violating our rights as we don't have any. lol..

Also, how would they know me, I'm mirakal here but in real life, do they know me?

[cheezcarls]

Greeting Everyone,


Headline: .BIR requires bloggers, filmmakers, content creators earning from digital ads to register

The Bureau of Internal Revenue (BIR) has recently released the Revenue Memorandum 60-2020,  requiring those conducting businesses through the use of any electronic platforms, media, and other digital means to register to the BIR. Yesterday, BIR Deputy Commissioner for Operations Arnel Guballa had identified which digital merchants are required to register. Among those in the list, are bloggers, filmmakers, content creators, and other independent creative professionals earning from digital ads.

• e-Commerce platform providers
• Internet retailers of consumer goods
• Digital service, membership, and subscription
• Digital transaction through the use of  electronic platforms and media
• Online blogging, film maters, earning from advertising gained from their online channels
• Ride-hailing services for food, transportation, delivery, or merchandise

The taxation for bloggers, content creators, and other professionals earning through digital ads is similar for online merchants as well, and those earning below PHP 250,000 a year should not pay taxes but are still required to file their annual Income Tax Returns.

I don't know you guys but I am a bit bothered to the imposition of levying tax on online businesses plus nag aalala din ako kung possible din ba na mapatawan ng tax yung mga high payee signature campaign participants especially to those people whose estimated earnings are above ₱ 6,000 per week. Keep in mind na yung mga online businesses na may ₱ 250,000 above per year can be subjected to the collection of tax by legal authorities.

Sumagi lang sa isip ko kasi we are included in the bracket of advertising from an online channel (bitcointalk) though naisip ko din na possible na hindi tayo maapektuhan ng tax kasi most of us are now aware of using SPV (Simple Payment Verification)and/or Non-Custodial bitcoin wallet whereas it can dramatically increase your privacy in terms of making a transaction lalo na kung ang user eh may alam sa basic functionalities like Coin Control. Plus, the use of bitcoin mixer can drastically improve the anonymity of every bitcoin transaction, dagdag mo pa kung gagamit ka ng different OS such as Tails or Linux equipped with TOR or hardened Firefox browser.

Medyo exaggerated lang yung sa privacy part pero important naman yan kung privacy conscious individual kayo when it comes to your bitcoin transaction. Any thoughts?

Halos lahat na lang i-tax nila, kagaya ng US nga ang crypto is already subjected to tax. Although hindi tayo mag wo-worry to be taxed if our annual income is below P250,000, kailangan pa rin mag file ng quarterly tax report at gumastos pa tayu lage para sa accountant. At anytime yung regulated wallets like Coins.PH, Abra and PDAX would enforce user accounts to comply with the taxes.

Anu pa kaya if they are going to tax us for crypto trading at pag receive ng airdrops at bounty hunting, in which napakataas yung market volatility ng Bitcoin at ng cryptocurrency market. Siguro one common reason na bakit ganun na sila is due to this pandemic, and we are suffering economic losses na. Yung utang ng Philippine government masyado na ka laki para lang awayin ang COVID-19.

[Rosilito]

I'm not sure kung madadamay 'yong mga signature participants pero sa tingin ko naman hindi. We're livin' in a principle of anonymity here ika nga nila. Dunno how they're going to find out this thing though saka ang complicated kasi 'di naman permanent 'yong ibang signature campaign, and problem agad 'yan if natapos then wala na maipambayad, right?

Kung maku-question man siguro baka ang pagdudahan is 'yong mga local exchange at mga accounts don like kung saan nanggagaling 'yong pera. Sorry sa noob answer 

Kaiirita pa naman 'yang tax na 'yan pero need rin naman ng bansa natin sa kabilang banda  .

[ice18]

Parang malabo naman na masilip pa ng BIR ang sig camp participants dito kasi di naman karami ang kumikita sa ganitong online income parang extra income na lang ito kung tutuusin kahit pa siguro sa malaki ang bayad like chipmixer talo pa manager ang sahod hehe pero sa tingin ko mahihirapan silang makakuha ang buwis lalo kapag crypto ang involve mahirap i-trace yan sa dami ng ng-oonline business ngayon mahihirapan lang sila diyan.

[dothebeats]

I don't think they can tax all those participants of Signature campaign since this is a decentralized market and its hard for BIR to collect our datas (matrabaho ito). If the digital ads will be taxed, then I'm sure hinde tayo kasama doon so wag muna magpanic. Though maari tayong magkaroon ng income tax thru this market pero mukang malayo pa tayo sa ganoong sitwasyon.

If asked by BIR, exchanges can submit our data for verification purpose para na rin gayon ay ma-tax nila kung meron mang mai-tatax sa atin. Hindi matrabaho ang magiging proseso kung readily-available naman ang information sa mga exchange, at ang tanging gagawin na lang ng BIR at ng gobyerno ay gumawa ng request letter for such information. Exchanges are expected to comply in these types of situations since hindi naman sila protektado ng bank secrecy law.

Besides, yung ginagawa naten is hinde naman negosyo and we can't register since di nga tayo business. Pero wag paren tayo syempre magpakampante and if magkaroon man ng batas, ay mas mabuti nang sumunod kesa mag karoon pa ng problema later on.

Any form of activity done which nets a person some profit is subject to taxation, provided na na-reach mo yung lower limit nung tax bracket. If not, hindi mo naman kailangang magbayad. In my case, I earn less than 20k a month from signature campaigns, at kung imu-multiply mo ito sa 12 months, less than Php 240,000 lamang ito kaya ligtas pa ako sa maaaring gustong gawin ng BIR na 'wag naman sana nilang iimplement.

[ecnalubma]

Hindi naman natin siguro kailangan mag worry kung below the bracket yung kinikita natin dito tsaka hindi naman regulated ang kitaan dito sa forum, pero sabi na nga ng BIR pwede parin mag file ITR kung below the bracket man ang kinikita ng isang indibidwal.

Mostly ang target kolektahan talaga ng BIR sa ngayon ay ang mga streaming sites at social media platforms na Billions of pesos na ang kinikita nila alone sa bansa lang natin. Kasama narin ang possibleng obligahin magbayad ng buwis niyan ang mga big time na social media influencers na namamayagpag ngayon sa ibat-ibang platform gaya ng Youtube at Facebook.

[Strufmbae]

wise man said, Do not issue a Receipt so that you will not be Taxed by the government.

Mind Blown.

just saying 

[Bttzed03]

~ I don't know you guys but I am a bit bothered to the imposition of levying tax on online businesses plus nag aalala din ako kung possible din ba na mapatawan ng tax yung mga high payee signature campaign participants especially to those people whose estimated earnings are above ₱ 6,000 per week. Keep in mind na yung mga online businesses na may ₱ 250,000 above per year can be subjected to the collection of tax by legal authorities.

The 250K treshold applies to individuals as well so yes it's possible. You have to keep in mind though that the above 250K refers to taxable net income. Ibig sabihin, gross revenue/income less allowed deductible expenses.

Let's use your example of 6K/week (Approx. 290K/year):

• Kung may deductible expenses na 40K, ang taxable net income ay 250K. Tax to be paid = 0
• Kung sakali man na walang deductible expenses, ang taxable net income ay 40K. Tax to be paid = 8K for 1 year (667/mo or 167/week)

Maybe this is just me but I won't be bothered paying 167 pesos if I am earning 6K on a weekly basis.

Sumagi lang sa isip ko kasi we are included in the bracket of advertising from an online channel (bitcointalk) though naisip ko din na possible na hindi tayo maapektuhan ng tax kasi most of us are now aware of using SPV (Simple Payment Verification)and/or Non-Custodial bitcoin wallet whereas it can dramatically increase your privacy in terms of making a transaction lalo na kung ang user eh may alam sa basic functionalities like Coin Control. Plus, the use of bitcoin mixer can drastically improve the anonymity of every bitcoin transaction, dagdag mo pa kung gagamit ka ng different OS such as Tails or Linux equipped with TOR or hardened Firefox browser.

Medyo exaggerated lang yung sa privacy part pero important naman yan kung privacy conscious individual kayo when it comes to your bitcoin transaction. Any thoughts?

But then again, if you use centralized platforms that requires KYC to convert crypto to fiat, wala din silbi ang mga privacy/anonymity tools. Hindi pa naman yata ganun kadami ang mga willing sa P2P trades dahil na din sa seguriddad. Mahirap na, sa kakatago mo sa gobyerno eh madisgrasya ka pa.

I don't think they can tax all those participants of Signature campaign since this is a decentralized market and its hard for BIR to collect our datas (matrabaho ito). If the digital ads will be taxed, then I'm sure hinde tayo kasama doon so wag muna magpanic. Though maari tayong magkaroon ng income tax thru this market pero mukang malayo pa tayo sa ganoong sitwasyon.

Never be sure kung exempted sa BIR ang pinagkakakitaan mo unless may specific memorandum na nagsasabing exempted nga ito. General rule is lahat ng kinikita natin ay subject to tax.

~ There is no need to worry, though the general rule is to pay taxes when you earn, but if you can hide it, then why pay.

Tax evasion though.

[ecnalubma]

Sa centralized world nga daming nakakalusot na hindi nakokolektahan ng taxes sa decentralised world pa kaya. Tsaka intindihin nalang natin na focus talaga ng government ngayon na makakolekta ng buwis pantapal sa mga ginastos at magagastos pa Covid-19 pandemic which is we don’t kung kailan matatapos ito.

[bisdak40]

Palagay ko, very complicated pa sa ngayon para sa ating mga mambabatas kung paano ba nila mahahabol yong mga kasali sa signature campaign dito dahil nga sila mismo ay hindi pa alam ang kalakaran dito.

Very visible kasi yong online selling at you tube blogging kaya napag-initan sila ng gobyerno na i-tax at medyo madali lang tingnan yong mga high earner dyan sa you tube blogging at recognize pa sila di kagaya natin dito sa crypto na medyo "anonymous".

[Theb]

Let's not argue the fact that the earnings from our signature campaign can be taxed or not dahil kung lumagpas ka sa tax bracket mo dahil na rin sa earnings mo from the signature campaign eh kailangan mo i-report yan at kailangan mo tuparin ang obligasyon mo magbayad mg tax. Pero yung nakakapagtaka dito is baka mali naman ang understanding ni Commissioner Guballa sa sarili nilang memorandun circular dahil ang kino-cover lang nito is businesses at hindi mga individual.

REVENUE MEMORANDUM CIRCULAR NO. 60-2020

issued on June 10, 2020 notifies persons conducting business through any forms of electronic media regarding their tax obligations and the registration of their business with the BIR, pursuant to the provisions of Section 236 of the Tax Code, as amended.

The provisions of this Circular cover not only partner sellers/merchants, but also other stakeholders involved, such as the payment gateways, delivery channels, internet service providers, and other facilitators.

I've literally read the whole file at wala namang binanggit na apektado dito kung hindi ang mga businesses katulad ng mga online sellers, matanong ko nga kayo kailan pa naging business ang maging “blogger” o “content creator”? Oo kumikita sila dito from various ad revenues at additional sponsorships pero hindi mo naman masasabing “business” ito diba dahil individual ka lang dito. You are eother a self-employed individual o isang free lancer na kumikita ng income. By the definition palang ng “business” hindi na pasok ang isang blogger dito kasi ano namang produkto ang binibenta mo? Diba wala? Ang ad revenue in a sense is yung kita ng mga kumpanya sayo like Youtube allowing you to earn incentives sa pag monetize ng channel mo.  Pag-intindi palang ng business at ad revenue ay mali na ang mga binitaw na salita ni Guballa. Also ang termino na “ad revenue” wasn't even mentioned in the memorandum circular itself so sa tingin ko pinapalawak lang ni Guballa yung sakop ng circular na ito which is wrong.

[Bttzed03]

~ Pero yung nakakapagtaka dito is baka mali naman ang understanding ni Commissioner Guballa sa sarili nilang memorandun circular dahil ang kino-cover lang nito is businesses at hindi mga individual.

REVENUE MEMORANDUM CIRCULAR NO. 60-2020

issued on June 10, 2020 notifies persons conducting business through any forms of electronic media regarding their tax obligations and the registration of their business with the BIR, pursuant to the provisions of Section 236 of the Tax Code, as amended.

The provisions of this Circular cover not only partner sellers/merchants, but also other stakeholders involved, such as the payment gateways, delivery channels, internet service providers, and other facilitators.

I've literally read the whole file at wala namang binanggit na apektado dito kung hindi ang mga businesses katulad ng mga online sellers, matanong ko nga kayo kailan pa naging business ang maging “blogger” o “content creator”? Oo kumikita sila dito from various ad revenues at additional sponsorships pero hindi mo naman masasabing “business” ito diba dahil individual ka lang dito. You are eother a self-employed individual o isang free lancer na kumikita ng income. By the definition palang ng “business” hindi na pasok ang isang blogger dito kasi ano namang produkto ang binibenta mo? Diba wala? Ang ad revenue in a sense is yung kita ng mga kumpanya sayo like Youtube allowing you to earn incentives sa pag monetize ng channel mo.  Pag-intindi palang ng business at ad revenue ay mali na ang mga binitaw na salita ni Guballa. Also ang termino na “ad revenue” wasn't even mentioned in the memorandum circular itself so sa tingin ko pinapalawak lang ni Guballa yung sakop ng circular na ito which is wrong.

Refer to the full text of the memorandum instead of the Digest.

It says there:

This circular is issued to give due notice to all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platform and media, and other digital means......

 
There's vagueness to the above quoted statement but the Deputy Commissioner already came forward and made that more clear for us. Read https://news.mb.com.ph/2020/06/18/bloggers-filmmakers-earning-from-digital-ads-required-to-register-bir/

In that article, it was stated that online merchants/businessmen covers those who are selling both goods and services. Tingin ko naman sapat na yun to explain why bloggers/content creators are covered in the memorandum.

My personal take:
Self-employed individuals were somewhat considered as Sole Proprietors in this case.
I was also hoping they would issue another memorandum to amend RMC No. 60-2020 at idagdag yung mga sinabi niya sa press conference.

[mirakal]

~ There is no need to worry, though the general rule is to pay taxes when you earn, but if you can hide it, then why pay.

Tax evasion though.

As long as you do it properly, you'll not be easily caught, and besides the earnings in signature campaign is just a small amount, why would we have to pay taxes on it. For example,  at my current campaign, I am earning php2500 per week or php 10,000 per month, but it's not stable as we will not know when it will stop. In tax on compensation, minimum wage earner are tax exempt and I guess I earn less than what the minimum wage earner earn in a yearly basis, so for me, it's not really reasonable.

[Bttzed03]

~
...and besides the earnings in signature campaign is just a small amount, why would we have to pay taxes on it. For example,  at my current campaign, I am earning php2500 per week or php 10,000 per month, but it's not stable as we will not know when it will stop. In tax on compensation, minimum wage earner are tax exempt and I guess I earn less than what the minimum wage earner earn in a yearly basis, so for me, it's not really reasonable.

So why do you have to hide it if it's within the tax exempt bracket?

[mirakal]

~
...and besides the earnings in signature campaign is just a small amount, why would we have to pay taxes on it. For example,  at my current campaign, I am earning php2500 per week or php 10,000 per month, but it's not stable as we will not know when it will stop. In tax on compensation, minimum wage earner are tax exempt and I guess I earn less than what the minimum wage earner earn in a yearly basis, so for me, it's not really reasonable.

So why do you have to hide it if it's within the tax exempt bracket?

I am only citing an example here, I know if its required then we have to pay but do you really think all the online earners are paying taxes properly? No, most of them are not because they know that when they got caught, they would not face a serious sanction. Don't expect that anyone from here would honestly remit their income from signature campaign, it's just a micro earning, for me it's silly to remit it when the government does not even have an idea what is signature campaign and what definition it should fall based on OP's post.

Don't worry, government wouldn't  mind us since we don't have a legal contract with our employer.
If I may ask, if we remit this as part of our compensation what company will we put as our employer? and does not employer even recognize us?

Not your real name you can't enter into a legal contract, thus you are not required to pay tax on it as you can't bind mirakal into a contract when mirakal is not a person.

[Bttzed03]

@mirakal Before we go any further, let's go back to this:

~
...and besides the earnings in signature campaign is just a small amount, why would we have to pay taxes on it. For example,  at my current campaign, I am earning php2500 per week or php 10,000 per month, but it's not stable as we will not know when it will stop. In tax on compensation, minimum wage earner are tax exempt and I guess I earn less than what the minimum wage earner earn in a yearly basis, so for me, it's not really reasonable.

Are you aware that even if you declare your income from signature campaigns, you are not automatically required to pay taxes? As I said in the previous comment, you'll need to have a taxable net income tax that's higher than 250K before you're required to pay. Don't mistake filing/declaring income with paying taxes.

[mirakal]

@mirakal Before we go any further, let's go back to this:

~
...and besides the earnings in signature campaign is just a small amount, why would we have to pay taxes on it. For example,  at my current campaign, I am earning php2500 per week or php 10,000 per month, but it's not stable as we will not know when it will stop. In tax on compensation, minimum wage earner are tax exempt and I guess I earn less than what the minimum wage earner earn in a yearly basis, so for me, it's not really reasonable.

Are you aware that even if you declare your income from signature campaigns, you are not automatically required to pay taxes? As I said in the previous comment, you'll need to have a taxable net income tax that's higher than 250K before you're required to pay. Don't mistake filing/declaring income with paying taxes.

Just establish first its legality, if there's none, then you are not covered in the particular memorandum as per OP.

This is my answer to your question, I hope it's clear.

Don't worry, government wouldn't  mind us since we don't have a legal contract with our employer.
If I may ask, if we remit this as part of our compensation what company will we put as our employer? and does not employer even recognize us?

Not your real name you can't enter into a legal contract, thus you are not required to pay tax on it as you can't bind mirakal into a contract when mirakal is not a person.

[Bttzed03]

~
Just establish first its legality, if there's none, then you are not covered in the particular memorandum as per OP.

Legality of declaring/filing all your income be it from signature campaigns or other types of digital services? That could form part of no. 3.

This is my answer to your question, I hope it's clear.

Don't worry, government wouldn't  mind us since we don't have a legal contract with our employer.
If I may ask, if we remit this as part of our compensation what company will we put as our employer? and does not employer even recognize us?

Not your real name you can't enter into a legal contract, thus you are not required to pay tax on it as you can't bind mirakal into a contract when mirakal is not a person.

My question was "Are you aware that even if you declare your income from signature campaigns, you are not automatically required to pay taxes?". The bolded part wasn't an answer to that.