TAX ADVISORY
17 April 2024
Actual Imposition of Withholding Tax on Gross Remittance
extended until JULY 14, 2024
(RMC 55-2024)
The Bureau of Internal Revenue (“BIR”) has granted e-marketplace operators and Digital Services Provides (“DFSP”) an additional ninety (90) day extension to comply with the provisions of RR 16-2023.
Under RR No. 16-2023 and RMC 8-2024, e-marketplace operators and DFSP are required to:
- Monitor gross payment of buyers/customers and withhold .5% tax on the gross remittances, in addition to existing withholding tax obligations, made to seller/merchant, unless the annual total gross remittances do not exceed P500,000.00;
- Ensure that all sellers/merchants operating in their platforms are registered with the BIR by requiring the submission of their Certificate of Registration (BIR Form No. 2303), which shall be part of e-marketplace operators’ minimum requirement;
- Require all sellers/merchants, whose annual gross remittances are expected not to exceed the P500,000.00 threshold, to submit a BIR-received Sworn Declaration on the amount of gross remittances;
- Require sellers/merchants, whose income are exempt from tax or subject to a lower income tax rate pursuant to an existing law or treaty, to secure and submit the necessary certification, clearance, ruling, or any other document serving as proof of entitlement of exemption or any tax treaty; and
- Provide the seller/merchants with the withholding tax certificates (BIR Form 2307).
For any questions/clarifications, please do not hesitate to email ust at [email protected].
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