- The Bureau of Internal Revenue (BIR) has issued Revenue Regulations (RR) No. 16-2023, imposing withholding taxes (WHT) on online sellers, clarified by Revenue Memorandum Circular (RMC) No. 8-2024.
- The withholding taxes aim to collect on transactions conducted through electronic marketplaces (e-marketplaces) and digital financial services platforms (DFSPs).
- E-marketplaces connect online buyers with sellers and process sales and payments.
- DFSPs offer financial services through the internet or mobile applications.
- The RR imposes a 1% WHT on gross remittances from e-marketplace operators and DFSP to online sellers/merchants.
- Sellers must register with the BIR, submit a Sworn Declaration (SD), and provide a Certificate of Registration (CoR) to the e-marketplace operator or DFSP.
- Sellers must also submit the SD annually and provide certification of tax exemption or lower rate if applicable. E-marketplace operators and DFSPs are responsible for ensuring seller registration, requesting certification of tax entitlement, and providing withholding tax certificates.
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