Philippines: BIR clarifies withholding tax made by online payment platforms

16 January, 2024

On 15 January 2024, the Philippines Bureau of Internal Revenue (BIR) published the Revenue Memorandum Circular No. 8-2024 of 15 January 2023, in which it clarified the imposition of the new 1% withholding tax for payments by online platforms to suppliers of goods and services. The circular is accompanied by a related declaration (annex).

On 29 December 2023, the Philippine News Agency (PNA) announced that the Bureau of Internal Revenue (BIR) had imposed a 1% withholding tax on online merchants with annual earnings of exceeding PHP 500,000.

Issued on 21 December 2023, Revenue Regulations No. 16-2023 introduced the 1% withholding tax on gross remittances made by electronic marketplace operators and digital financial services providers to sellers/merchants.

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