The Bureau of Internal Revenue (BIR) issued this Revenue Memorandum Circular (RMC) in response to reports concerning specific social media influencers who are failing to pay taxes despite earning substantial incomes. This Circular serves as a reminder of their legal responsibilities to the government and the potential repercussions of tax evasion.

Who Are Social Media Influencers?

Social media influencers are individuals or entities that earn income from various social media platforms, such as Facebook, YouTube, and TikTok, in exchange for the services they provide through those platforms.

Tax Responsibilities of Social Media Influencers

The earnings of all social media influencers, whether received in cash or kind, for services rendered via social media platforms are generally subject to regular income tax, unless they have already been taxed at a final rate or are exempt by law.

Influencers may also be liable for business taxes, which could include:

• Value Added Tax (12%)
• Percentage Tax under Section 116 (1%, applicable until June 30, 2023)

Additional Information

The BIR has previously stated in RMC 60-2020 that all online transactions must be registered and monitored by the BIR. Additionally, influencers are required to keep accurate books of accounts and adhere to other BIR regulations. Failing to meet these obligations could lead to substantial penalties.