Small online sellers are excluded from the required one percent creditable withholding tax policy of the Bureau of Internal Revenue (BIR), its Commissioner Romeo Lumagui Jr. said on Monday, January 22.
The BIR is set to impose the one percent creditable withholding tax on one-half of the gross revenues of online sellers.
Interviewed during DZRH Dos Por Dos, Lumagui said sellers earning below P500,000 in a year are not subjected to the policy.
"Yung nakaltas na withholding tax, maliit lang ito, creditable ito. Kaya ang tawag ay creditable withholding tax dahil ibabawas 'yan ultimately babayaran na income tax pagtapos ng isang taon. Yung online sellers, walang gagawin dahil yung online platforms ang magkakaltas nito [sa kanilang income]," he explained.
"Kalahati ng gross revenues ninyo tas 1 percent po nun. So kunware, meron tayong Php 1,000, kalahati no'n, Php 500, 1 percent ng Php 500. Nagkaroon tayo ng threshold para doon sa mga maliit na negosyante. Kapag hindi tumaas sa P500,000 sa isang taon ang benta, hindi saklaw nitong withholding tax," Lumagui added.
Atty. Romeo Lumagui Jr., Commissioner, BIR, sa Ease of Paying Taxes: Maraming features ang Ease of Paying Taxes na batas na kakapasa lang. Una na riyan, natanggal na ang annual registration fee na P500.#DosPorDos#SamaSamaTayoPilipino
— DZRH NEWS (@dzrhnews) January 21, 2024
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The BIR Commissioner stressed that the creditable withholding tax is not a new policy.
"Itong withholding tax na ito ay hindi panibagong uri ng buwis. Ang buwis dito ay income tax. Kapag nag ne-negosyo tayo, subject tayo sa income tax. Ang withholding tax ay pamamaraan lamang ng pagkolekta ng income tax na binabayaran sa katapusan ng taon or 1st quarter of the following year," he said.
According to Lumagui, the withholding tax will not affect the value-added tax imposed against products sold in online platforms.
He added that the prices of products offered by online sellers would not hike.
