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

[Asuspawer09]

I think agree ako sa mga sinasabi ng mga ibang member dito sa lokal naten, mukang malabo nga na masama pati itong forum naten for taxes, siguro kung masasama pa pati itong forum naten ay dapat masama na rin ang mga million million na websites kung saan pwede rin kumita ang mga Filipino.

I think siguro masmadaling malagyan ng tax ang mga sikat na online websites like facebook,google, youtube etc. ang tingin ko ang mga website na yon ay siguradong magkakaroon ng taxes tulad na lang mga mga youtubes,streamers etc. Pero nakuha din naman namen ang point mo since maraming members ang kumikita ng malaki dito sa forum.

[Ryker1]

Well, ang tanong dito, --kumikita kaba ng higher 250k PhP per month from signature campaign na dapat mo e-declare? Sa tingin ko wala naman siguro lahat tayo dito may kanya-kanyang trabaho maliban dito sa forum. Ikaw, kusang loob ka bang mag file ng annual Income Tax Returns at sabihin mo na account ko yan nasa bitcointalk at ganito ang kinikita ko per year/month. Sa tingin ko bihira nalang.

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".

Indeed. Kaya impossible tayo magka tax dito.
End of discussion!

[Theb]

~snip

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

Yes I read the full test of the memorandum circular at nag-quote lang ako sa digest dahil dito lang pwedeng ma-copy and paste ang text kumpara sa full text file which is on an image format.

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.

The memorandum circular still fails to show how bloggers o kaya ang mga content creators ay kasama sa sakop nito sa pagiging business. Ang pagiging merchant or businessman simply requires them to sell goods and services which they aren't doing kung mga sponsorships na extra pwede pa pero yung ad revenue na kinikita nila paano nila ma-explain na business ito kung incentive lang naman sakanila ng mga content websites na ito. Simple lang di sila merchant or business walang kumo-contact sakanila to buy something from them kasi wala naman silang binibenta in the first place. If they were considered as “sole-proprietors” rather than “self-employed” individuals dito pumalpak si Guballa dahil nga hindi naman sila pwedeng i-consider as business in the first place, nabasa ko na din yung article ng Manila Bulletin at similar lang naman yung sinabi dito at yung article ng Yugatech at parehas pa din ang aking sentimento tungkol dito na si Guballa na nag-dadagdag ng mga bagong batas sa memorandum circular kahit hindi naman ito sakop, this alone will give bloggers a chance in court if kasuhan sila ng BIR.

[john1010]

Wala naman akong nakikitang problema kung tayo ay magtatax sa government, katungkulan natin ito dahil nakikinabang din tayo sa resources ng bansa at ng mga mamamayan nito, kung dati nga na kinukurakot lang ang kaban ng bayan ay nagtatax tayo, ngayon pa kaya na nakikita natin na nagsisikap ang gobyerno na maglingkod at pagbutihin ang kanilang serbisyo, oo may mga kapalpakan din sa mga itinalaga, pero ang tignan natin na may puso ito kesa naman sa mga nagdaang admin.

[Hippocrypto]

Wala naman akong nakikitang problema kung tayo ay magtatax sa government, katungkulan natin ito dahil nakikinabang din tayo sa resources ng bansa at ng mga mamamayan nito, kung dati nga na kinukurakot lang ang kaban ng bayan ay nagtatax tayo, ngayon pa kaya na nakikita natin na nagsisikap ang gobyerno na maglingkod at pagbutihin ang kanilang serbisyo, oo may mga kapalpakan din sa mga itinalaga, pero ang tignan natin na may puso ito kesa naman sa mga nagdaang admin.

Sa bagay talagang transparent na ngayon kompara sa dati ang mga resulta ng tax money sa ating bansa. Kung may tax implementation sa mga digital ads, dapat isaayos ang mga ito na hindi ma corrupt ng nasa gobyerno. Dapat hindi ma over taxation, para hindi mamulubi ang kumikita kagaya ng signature campaign na karamihan ay umaasa dito lalo na sa panahon ngayun na mahina ang kitaan.

[JanpriX]

Once na mapakinggan ko ito sa balita, napa-isip kagad ako kung sakop ba ako nitong balitang ito. Pero na-realize ko din na hindi naman ako aabot/lalampas sa threshold na tinalaga nila.

I'm not well-versed to these kind of things and apologies in advance if my questions sound dumb but I'll put it out anyway. Pano nila malalaman na kumikita ako sa isang signature campaign kung hindi ko naman ito i-dedeclare? Kung lalapit naman sila sa Coins.ph at tingnan yung mga pumapasok na BTC to my account with them, pede ko din namang itanggi na galing yon sa sig campaign.

Again, don't bash me for my questions. These are just my honest questions and I really don't know the answers to them. So others who can give light into these are much appreciated. 

[mirakal]

~
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.

I'm not talking about declaration because I would never declare my earning as in the first place I believe that we are not required to pay taxes for our income in signature campaign. If you declare yours then that's good for you, there's no law that prohibits you from doing that.

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.

I don't need to answer that question as like I said, I don't consider my income from signature campaign as taxable income.
Consider the income that we earn from signature campaign as off the books income, it's not necessary to remit it.

Ikaw, kusang loob ka bang mag file ng annual Income Tax Returns at sabihin mo na account ko yan nasa bitcointalk at ganito ang kinikita ko per year/month. Sa tingin ko bihira nalang.

Wala naman sigurong gumagawa yan, kalokohan lang yan kung may mag remit ng income nila from signature campaign.
Ganito kasi yun, kung ang government ay nakikinabang sa atin through our tax remittance, di ba dapat may protection din tayo sa government, so paano yan, kunyare i red tag ang account mo at hindi kana makapag hanap buhay, saang agency ka mag report para mag pa investigate?

I'm not well-versed to these kind of things and apologies in advance if my questions sound dumb but I'll put it out anyway. Pano nila malalaman na kumikita ako sa isang signature campaign kung hindi ko naman ito i-dedeclare? Kung lalapit naman sila sa Coins.ph at tingnan yung mga pumapasok na BTC to my account with them, pede ko din namang itanggi na galing yon sa sig campaign.

Of course di nila malalaman, pero maari kang mag remit kahit di ka required, di naman tatanggihan ng BIR yan kasi nga pera na yan.
Pero sa totoo lang, walang gumagawa ang niyan dahil malibang nalang kung masyado kang mapag bigay, at ang BIR mayroon sila check and balance na tinatawag..

Kunyare kung ikaw ang isang employee, ang employer mo mismo ang mag dededuct ng tax sa iyo para ibayad nila sa BIR, sila ang tinatawag ang withholding agent, para masiguro na mag remit ka ng maayos.. so sa signature campaign natin, sino ang witholding agent? si yahoo ba or si hhampuz? wala..

Kung sa business naman, dapat may resibo, para may ma check, kung nagbebenta ka, dapat mag issue ka ng resibo na registered sa BIR, kung may resibo may check and balance din.. Sa signature campaign, walang ganyan kaya walang legality ito.. in short NO TAX REQUIRED.

Again, don't bash me for my questions. These are just my honest questions and I really don't know the answers to them. So others who can give light into these are much appreciated.  

No one is bashing here, gusto ko tong thread na to. may different opinion tayo at klaro namang knowledgeable ang mga nag participate sa discussions.



SUGGESTION KO SANA kay OP.. PWEDE KANG GUMAWA NG POLL , "MAY TAX BA ANG SIGNATURE CAMPAIGN?" para lang malaman ang boses ng majority.

Wag sana rin nating gawing example ang youtube or anong platform na walang kinalaman sa crypto dahil dapat crypto discussion lang tayo dito.
Sa pagkakaalam ko rin, sa youtube alang ng company ang full name mo dahil requirement yan for monetization, kaya madali kang ma trace.

[Bttzed03]

~
The memorandum circular still fails to show how bloggers o kaya ang mga content creators ay kasama sa sakop nito sa pagiging business. Ang pagiging merchant or businessman simply requires them to sell goods and services which they aren't doing kung mga sponsorships na extra pwede pa pero yung ad revenue na kinikita nila paano nila ma-explain na business ito kung incentive lang naman sakanila ng mga content websites na ito. Simple lang di sila merchant or business walang kumo-contact sakanila to buy something from them kasi wala naman silang binibenta in the first place. If they were considered as “sole-proprietors” rather than “self-employed” individuals dito pumalpak si Guballa dahil nga hindi naman sila pwedeng i-consider as business in the first place, nabasa ko na din yung article ng Manila Bulletin at similar lang naman yung sinabi dito at yung article ng Yugatech at parehas pa din ang aking sentimento tungkol dito na si Guballa na nag-dadagdag ng mga bagong batas sa memorandum circular kahit hindi naman ito sakop, this alone will give bloggers a chance in court if kasuhan sila ng BIR.

I get where you are coming from.

I also thought the memorandum was originally for e-commerce merchants only but then realized it could also cover all digital earners. It is no longer a question of "maituturing bang business ang blogging at content creation?" when Guballa clarified it na kasama mga digital earners. That is why I was hoping na mag-issue sila ng panibagong memorandum amending the previous one para mas klaro na.

It is within anyone's right naman to challenge it with the court but on what grounds? Vagueness? Expanding the coverage of the memo? Whatever the case, I don't think it will fly. Besides, hindi naman against sa Tax code yung memorandum which requires declaration of income.

If you know someone that would file a case to challenge RMO 60-2020, sabihan mo ako. Gusto ko din sundan yan kung sakali.

~
I'm not talking about declaration because I would never declare my earning as in the first place I believe that we are not required to pay taxes for our income in signature campaign. If you declare yours then that's good for you, there's no law that prohibits you from doing that.

Then what "establish first its legality" are you talking about?

~
I don't need to answer that question as like I said, I don't consider my income from signature campaign as taxable income.
Consider the income that we earn from signature campaign as off the books income, it's not necessary to remit it.

I see, I'd take that as a 'no'.

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

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.

Regardless kung sa signature campaign ka kumikita or kung saan mang digital platforms, the law is very clear on this. Putting RMC 60-2020 (which covers digital earnings) aside, kung nakatira ka dito sa Pinas at sumasali sa mga sig campaigns, yung income mo dun is taxable under Section 23-A alone. Pero gaya ng sinabi ko at ng iba dito, pwedeng exempted kung 250K and below. Nevertheless, you are still bound by law to declare it.


I appreciate the discussion here at halata naman magkakaiba ng opinyon but I think we all know the right thing to do. Like I said, the law is clear and it's not a question of "paano nila malalaman?" or to put it more directly, "paano nila ako mahuhuli?". It is up to us now kung susundin natin yung nakasaad sa batas o hindi. I'm pretty sure we are all old enough to know na may equal reaction sa bawat action na gagawin natin.  


@Maus0728 mailagay mo sana  dun sa OP yung part ng tax code na binanggit ko. Tingin ko halos lahat dito hindi alam yan kaya magandang mabasa din.

[plvbob0070]

Siguro dapat may specific na mga halimbawa ng maaaring singilin sa tax or yung mga pasok sa category. Kagaya nga ng sabi nila,  mukhang mahihirapan din ang BIR kung pati itong mga signature campaign ay io-obliga nila na magbayad ng tax. And since marami din ang sakop ng bracket na yun, I don't think kaya nilang ihandle lahat especially kung isasama nila ang decentralized transactions. Parang sa idea pa nga lang na pati online selling ay lalagyan nila ng tax, makakasigurado ba sila na lahat nagbabayad at lahat registered?

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".

Kumpara naman talaga sa mga online sellers at vloggers, mas madaling makilala sino kung nga kumikita ng malaki kasi kilala sila lalo na sa social media. Pero yung related sa crypto, hindi naman madaling matrace ang mga ito dahil na din sa nature nito.

[mirakal]

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

Again, this is another general law, I think we need to be specific here since we are talking about the 250k threshold in a yearly basis so our income will fall under the compensation income.

So here's the definition of gross compensation income : source

Gross compensation income is defined as taxable income arising from an employer/employee relationship and includes the following:

salaries, wages, compensation, commissions, emoluments, and honoraria
bonuses exceeding PHP90,000
allowances for transportation, representation, entertainment, and other similar items
fees (including director’s fees paid to a director who is at the same time an employee of the payer)
taxable pensions
taxable retirement pay
other income of a similar nature, including compensation paid in-kind.

So here's my question, do we have an employer-employee relationship when we are participating in a signature campaign?

If your answer is no, END OF DISCUSSION, if Yes then answer this question.

If there is an employer-employee relationship there should be a contract as the basis of employment, an employer or employee can file a legal action if one contracting party violated the contract.

Now, since I'm currently on a signature campaign, if the manager would fail to pay the agreed compensation, can I sue him/her/it (since we don't know if what we are working with is human or a robot or whatsoever)?

If your answer is yes, HOW?

[serjent05]

Butting in,  sa tingin ko wala naman problem sa pagdedeclare ng kita dito sa signature campaign, yun nga lang macocompromise ang identity ng account.  

The thing is, we are all resident ng Pilipinas sa board na ito (ewan ko lang kung merong hindi) so bound tayo ng batas na sinasabi ni Bttzed03 na naayon sa  Section 23-A  so walang argument about that.

Ngayon ang binding agreement sa signature campaign na hinahanap ni mirakal.  The binding agreement ay iyong pag-apply sa signature campaign at pagtanggap ng campaign manager sa iyo through post confirming that we are accepted or ang spreadsheet na nakalagay ang pangalan natin na tanggap na tayo.

If ever magkaroon ng sigalot pwede ba tayong magreklamo, of course pwede since we have the evidence which is the Campaign announcement thread, the application post, the acceptance post and the spreadsheet.  Ang hindi ko lang masagot is saan tayo pwede magreklamo, sa Pilipinas ba o sa bansa ng may hawak ng campaign o sa bansa kung saan nakabase ang kumpanya na may-ari ng signature campaign.  Sa isang crime kasi dapat ang kaso ay pinafile kung saan nangyari ang krimen.  Babagsak ang kaso under cyber fraud crime.

Regardless, we have the responsibility to declare our income sa gobyerno, no ifs, no buts, nasa batas yan. at malinaw na malinaw.  Kahit mga freelancer, nagpafile pa rin ng income sa BIR exempted nga lang sila dahil di umaabot sa minimum requirement for taxing.

[Bttzed03]

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

Again, this is another general law, I think we need to be specific here

Did you missed the part where it says "Except when otherwise provided in this Code". Did you see in the tax code that income from digital ads are exempted?

Let me rephrase that, unless it is stated in the tax code that income from sig campaigns or other digital ads are exempted from law, it is subject to tax.

@plvbob0070 my reponse above also addresses your "siguro dapat may specific" comment.

~ since we are talking about the 250k threshold in a yearly basis so our income will fall under the compensation income.
 
So here's the definition of gross compensation income : source

Gross compensation income is defined as taxable income arising from an employer/employee relationship and includes the following:

salaries, wages, compensation, commissions, emoluments, and honoraria
bonuses exceeding PHP90,000
allowances for transportation, representation, entertainment, and other similar items
fees (including director’s fees paid to a director who is at the same time an employee of the payer)
taxable pensions
taxable retirement pay
other income of a similar nature, including compensation paid in-kind.

So here's my question, do we have an employer-employee relationship when we are participating in a signature campaign?

If your answer is no, END OF DISCUSSION, if Yes then answer this question.

If there is an employer-employee relationship there should be a contract as the basis of employment, an employer or employee can file a legal action if one contracting party violated the contract.

Now, since I'm currently on a signature campaign, if the manager would fail to pay the agreed compensation, can I sue him/her/it (since we don't know if what we are working with is human or a robot or whatsoever)?

If your answer is yes, HOW?

You are making an assumption that it should fall under under an employer-employee relationship and that's the limitation of your argument.

It may look like that since we are the one "applying" but compensation from digital ads can easily be categorized as income from freelancing or from selling your signature space to other companies (self-employed). Go check the services board and you can see some members with "selling my sig space/avatar or advertise your project/company in my sig" types of posts.

[mirakal]

~ since we are talking about the 250k threshold in a yearly basis so our income will fall under the compensation income.
 
So here's the definition of gross compensation income : source

Gross compensation income is defined as taxable income arising from an employer/employee relationship and includes the following:

salaries, wages, compensation, commissions, emoluments, and honoraria
bonuses exceeding PHP90,000
allowances for transportation, representation, entertainment, and other similar items
fees (including director’s fees paid to a director who is at the same time an employee of the payer)
taxable pensions
taxable retirement pay
other income of a similar nature, including compensation paid in-kind.

So here's my question, do we have an employer-employee relationship when we are participating in a signature campaign?

If your answer is no, END OF DISCUSSION, if Yes then answer this question.

If there is an employer-employee relationship there should be a contract as the basis of employment, an employer or employee can file a legal action if one contracting party violated the contract.

Now, since I'm currently on a signature campaign, if the manager would fail to pay the agreed compensation, can I sue him/her/it (since we don't know if what we are working with is human or a robot or whatsoever)?

If your answer is yes, HOW?

You are making an assumption that it should fall under under an employer-employee relationship and that's the limitation of your argument.

It may look like that since we are the one "applying" but compensation from digital ads can easily be categorized as income from freelancing or from selling your signature space to other companies (self-employed). Go check the services board and you can see some members with "selling my sig space/avatar or advertise your project/company in my sig" types of posts.

Selling signature campaign space? I think what I found is renting signature space, there's a big difference.
I did a little research about selling services and I can't even find similar services with signature campaign.
https://simplicable.com/new/service-business

When we talk about selling signature space, we just need to wear the signature and the transaction is done, and when you are selling, you are the one telling the buyer what you are selling and he buys.

Most of the time it's different, the usual scenario is, there's a new campaign, the manager made an announcement with the rules and the requirement of the campaign, and we are required to apply in order to get accepted, so this is not us selling, it's us applying for the job as it's more than just wearing a signature in our profile since at the same time we are oblige to follow the rules of the campaign which if we fail, we will not get paid even if we are wearing the signature.

[Bttzed03]

~
Selling signature campaign space? I think what I found is renting signature space, there's a big difference.
I did a little research about selling services and I can't even find similar services with signature campaign.
https://simplicable.com/new/service-business

When we talk about selling signature space, we just need to wear the signature and the transaction is done, and when you are selling, you are the one telling the buyer what you are selling and he buys.

Most of the time it's different, the usual scenario is, there's a new campaign, the manager made an announcement with the rules and the requirement of the campaign, and we are required to apply in order to get accepted, so this is not us selling, it's us applying for the job as it's more than just wearing a signature in our profile since at the same time we are oblige to follow the rules of the campaign which if we fail, we will not get paid even if we are wearing the signature.

I got it (selling sig space) mixed up. It's supposed to be renting out sig space/selling your service to promote a particular company.

"Applying" for sig campaigns can also be seen this way:

Company A wants to promote something by renting sig space and availing services of independent advertisers so a representative announced it here on bitcointalk. He laid out the terms/contract and asks members here who is willing to rent out their sig space and promote the company meeting the required no. of posts. As a sign of willingness, the representative asks members to post their usernames and other data. The representative will then choose whose sig space and service they want to avail.

For members with threads renting out their signature, yes they have added their own terms but companies who would avail will most likely have their own conditions too and not just buy outright (i.e. number of posts/week). When it's all set, both parties will have to abide by the terms they agreed. 

'Signature space' on bitcointalk can also be seen as similar to a space being rented out in other websites/blogs.

Anyway, technicalities aside, renting out signature or selling services to promote something is not that different from what freelancers or self-employed do. Products/Services may be different but both are still generating income. Since it's not specifically stated under the law that it's exempted, the income generated is subject to tax.


I failed to put this in my previous comment but the 250K treshold isn't limited to income gained under employer-employee relationship. It also applies to online sellers, corporations, freelancers, or self-employed.

[Vaculin]

Nice discussion we got here, di ko alam may accountants and lawyers pala dito, tama ba ako? hehe..

Anyway, allow me to share my opinion regarding the topic, maaring taxable ang income natin pero personally hindi ako mag reremit gaya ng karamihan sa atin, kung baga, maghihintay nalang ako na mas matackle pa ang signature campaign income para mas klaro. Sa tagal ko na dito sa forum, never kung naisip na kailangan mag remit ng income natin dahil kung sa work, yung HR na mismo ang mag deduct ng tax sa sahod natin, so kung tayo ang mag remit nito, parang business na rin, or self employed tayo gani ng sabi ni Bttzed03... ayaw kung isipin ng ganyan dahil pag tinanong ako dito sa amin about anong work ko,,anong sasabihin ko, signature campaigners? hehe.. sorry guys, medyo complicated lang on my part.

[Bttzed03]

Nice discussion we got here, di ko alam may accountants and lawyers pala dito, tama ba ako? hehe..

Anyway, allow me to share my opinion regarding the topic, maaring taxable ang income natin pero personally hindi ako mag reremit gaya ng karamihan sa atin, kung baga, maghihintay nalang ako na mas matackle pa ang signature campaign income para mas klaro. Sa tagal ko na dito sa forum, never kung naisip na kailangan mag remit ng income natin dahil kung sa work, yung HR na mismo ang mag deduct ng tax sa sahod natin, so kung tayo ang mag remit nito, parang business na rin, or self employed tayo gani ng sabi ni Bttzed03... ayaw kung isipin ng ganyan dahil pag tinanong ako dito sa amin about anong work ko,,anong sasabihin ko, signature campaigners? hehe.. sorry guys, medyo complicated lang on my part.

Magkakamot panigurado ng ulo yung pagsasabihan mo ng signature campaigners hehe. Pwede naman online/digital advertisers kagaya ng nakasaad sa title ng OP.

Kung working ka naman tapos active ka sa sig campaigns, pwede mo naman sabihin sa HR na isama din sa ITR mo yun dahil meron tayong tinatawag na mixed income. Dagdag trabaho nga lang talaga pagdating sa presentation, computation, at payment kung sakali. 


Karamihan dito ay wala naman argument sa legality pero maraming tanong about sa implementation. While I agree na mahihirapan ang BIR sa pag-handle nito at malamang mag-focus sila sa mga mas malalaking online merchants/digital earners, hindi natin ito pwede gawing excuse para hindi tayo mag-declare ng kinikita natin online (kasama na sig campaigns). 

The law mandating us to declare all income and register business is not new. Marami sa atin ang hindi aware pero before pa magkaroon ng RMC 60-2020, may mga vloggers/freelancers/online sellers at iba pang digital earners ang nagko-comply sa filing at declaring ng mga income nila.

Sa tingin ko naman nakapagbigay na ako ng sapat na basis/references kung bakit subject to tax ang mga digital ads kaya final contribution ko na siguro ito sa thread na ito.

[Maus0728]

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

Wala naman akong nakikitang problema kung tayo ay magtatax sa government, katungkulan natin ito dahil nakikinabang din tayo sa resources ng bansa at ng mga mamamayan nito

I don't know if @Bttzed03 will agree to this.

If signature campaign participant will be taxed, then what are the taxable fringe benefits we can get? Kasi diba kung nagbabayad ka ng tax, let's say for example, an employee working for a company in our country, may benefits yan such as SSS deduction, PhilHealth Deduction, Pag-Ibig deductions etc.. -- eligible ba tayo para makakuha ng mga yan?

These people who are earning from digital marketing/ freelancers/ online sellers/ bloggers are somewhat independent kasi sarili lang din naman inasahan nila in the first place; they provide their own electricity, foods, materials while working inside their home right? Kahit yung government walang pake don.

mahirap i-trace yan sa dami ng ng-oonline business ngayon mahihirapan lang sila diyan.

I don't think so. Coins.ph pa lang yari ka na eh, just admit that we've surrendered our identities to maximize their services -- for our own sake and ease of use right?

Pero yung related sa crypto, hindi naman madaling matrace ang mga ito dahil na din sa nature nito.

Yan din naisip ko nung una but then naisip ko na I disclosed my personal identity sa centralized exchanges (CEX) and custodial wallet (coins.ph) which can be easily ties sa btc addresses natin -- wala pa naman coin control function yung mga yun LOL.

Anyway, technicalities aside, renting out signature or selling services to promote something is not that different from what freelancers or self-employed do. Products/Services may be different but both are still generating income. Since it's not specifically stated under the law that it's exempted, the income generated is subject to tax.

Yes! Regardless of what term we will be using, both of them are still generating an income.


@Bttzed03

How about age differences? Kasama din ba yun sa factors na kinoconsider to make the subject taxable or not? I am 19 yrs old pero I am sa earning signature campaign (digital marketing). Am I subjected to tax?

[iTradeChips]

Natatawa lang ako sa balitang ito kasi para sa akin malamang may tax requirement na naman ito yung tipong pag hindi 250,000 a year ang kita mo dito eh hindi ka itatax. Kasi sa sinasalihan ko ngayon kakapurit lang natatanggap ko tipong pangyosi lang sa isang araw ang kita ko sa isang linggo so para sa akin malaking kalokohan ang itax pa nila ang mga signature campaigns. 300 pesos a month ang kita itatax pa, diba?

[Bttzed03]

~
I don't know if @Bttzed03 will agree to this.

If signature campaign participant will be taxed, then what are the taxable fringe benefits we can get? Kasi diba kung nagbabayad ka ng tax, let's say for example, an employee working for a company in our country, may benefits yan such as SSS deduction, PhilHealth Deduction, Pag-Ibig deductions etc.. -- eligible ba tayo para makakuha ng mga yan?

These people who are earning from digital marketing/ freelancers/ online sellers/ bloggers are somewhat independent kasi sarili lang din naman inasahan nila in the first place; they provide their own electricity, foods, materials while working inside their home right? Kahit yung government walang pake don.

Fringe benefits per se are benefits provided under an employment contract. Ibig sabihin you are only eligible if you are under employer-employee relationship. Hindi kasali ang mga independent online/digital marketers dyan. Like I said in my previous comment, sig campaigns are more like income from freelancing or from being self-employed.

Just to clarify SSS/Philhealth/Pagibig are part of non-taxable fringe benefits.
 

@Bttzed03

How about age differences? Kasama din ba yun sa factors na kinoconsider to make the subject taxable or not? I am 19 yrs old pero I am sa earning signature campaign (digital marketing). Am I subjected to tax?

There is no age restriction actually. Pati yung mga under age, legal guardians ang magaasikaso ng filing at payment.

I'm adding another section in the tax code for reference of all readers:

Who are Required to File Income Tax Returns?

Individuals

- Resident citizens receiving income from sources within or outside the Philippines

- Employees deriving purely compensation income from two or more employers, concurrently or successively at any time during the taxable year

- Employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly (i.e. tax due is not equal to the tax withheld) resulting to collectible or refundable return

- Self-employed individuals receiving income from the conduct of trade or business and/or practice of profession

- Individuals deriving mixed income, i.e., compensation income and income from the conduct of trade or business and/or practice of profession

- Individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax

- Individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing

Non-resident citizens receiving income from sources within the Philippines

Aliens, whether resident or not, receiving income from sources within the Philippines

Based on the above, you are required to file an ITR. But again, if your taxable annual income is equal to or falls below the 250K treshold, zero ang tax due mo (wala kang babayaran).

[Twentyonepaylots]

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.

I'm sure hindi sila masyado aware sa ganapan sa surface ng cryptocurrency, ang sigurong pagkakaalam lang nila about it is isa lang itong form ng investment or payment mode of a business. Kapag kasi nakakarinig sila ng word na business automatic na sa kanila yan kase may perang dumadaloy doon. Pero with the signature campaigns being taxed? malabo pa sa sabaw ng pusit yan, kasi kung tatanungin mo sila ng "paano?" hindi na nila alam ang isasagot, baka ang sabihin lang nila e " edi ireport nyo sa amin." they should research about it generally before coming up with this memorandum. Hindi naman ako ganon ka against sa pagbabayad ng tax kase sa taong bayan din naman napupunta yan ( unless kurakutin nila ) , even on taxing netflix and other internet services agree din ako kase kailangan talaga natin ng malaking pondo sa gitna ng pandemya. Pero sa pagkakataong ito, sa bagay na to, I strongly disagree.