6 September 2021
Like all taxpayers, social media influencers are required to register with the BIR and secure a Philippine tax identification number. RMC No. 97-2021 defines a “social media influencer” as “all taxpayers, individuals or corporations, receiving income, in cash or in kind, from any social media sites and platforms ((YouTube, Facebook, Instagram, Twitter, TikTok, Reddit, Snapchat, etc.) in exchange for services performed as bloggers, video bloggers or “vloggers” or as an influencer, in general, and from any other activities performed on such social media sites and platforms.”
Unless exempted under the National Internal Revenue Code of 1997, as amended (Tax Code) (e.g., those earning a taxable annual income not exceeding Php250,000), special laws or tax treaties, income derived (a) from sources within or without the Philippines by social media influencers who are resident citizens or (b) from sources within the Philippines by social media influencers who are non-residents or residents of the Philippines, are subject to Philippine tax.
The Tax Code requires every person subject to internal revenue taxes to register with the appropriate Revenue District Office (RDO) and to update his registration information with the RDO in case of any change in taxpayer details. Influencers who are already registered with the BIR (e.g., as employees) must ensure that their registration reflects their existing or current line of business and, if necessary, update their registration information with the RDO where they are registered. Accordingly, unless the social media influencer is exempt from Philippine tax under the Tax Code, special laws or applicable tax treaty, he must register or update his registration with the BIR to facilitate the filing of tax returns and payment or withholding of taxes on the income derived from his business activities as a social media influencer.
For resident foreign influencers, the RMC provides that income derived from Philippine-based contents is generally subject to Philippine tax. The resident foreign influencer has the burden of proving that the income was derived from sources outside the Philippines; otherwise, the income will be assumed to have been derived from sources within the Philippines and thus subject to Philippine tax.
SyCipLaw Tip: Social media influencers are subject to tax on income they earn from their activities. Like any other taxpayer, they should be aware of their obligations under the tax laws. RMC 97-2021 sets out the taxes that are applicable to them.
For further information, please contact:
Carina C. Laforteza, Tax Department Head,
SyCip Salazar Hernandez & Gatmaitan
cclaforteza@syciplaw.com
