BIR extends deadline for online biz

THE Bureau of Internal Revenue (BIR) is officially extending the deadline for business registration and submission of the Sworn Declaration of Gross Remittance for online sellers for another 90 days for compliance until July 14, 2024.

In a statement issued on Tuesday, the BIR said Internal Revenue Commissioner Romeo D. Lumagui Jr. granted an extension of the transitory period for compliance with Revenue Regulations (RR) 16-2023.

The ruling implements a withholding tax system on gross remittances made by electronic marketplace (e-marketplace) operators and digital financial services providers (DFPS) to sellers/merchants.

The initial deadline for the business registration and submission of sworn declarations was April 15. However, Lumagui said earlier that he is looking into extending the deadline after receiving requests from online selling platforms to do so.

Lumagui was quoted in a statement as saying that the 90-day extension of the transitory period under RR 16-2023 shows the BIR’S commitment to listening to the voice of the private sector.

“This is part of my administration’s thrust on ‘Excellent Taxpayer Service,’” the BIR chief added. “We hear the thoughts of the private sector, and if the same is reasonable, then we make policy adjustments for the benefit of the Filipino people.”

On the last day of the registration, the BIR commissioner floated the idea of extending the deadline that would give some leeway for online selling platforms to “fix their systems” since the electronic marketplace operators will deduct the 1 percent withholding tax of one-half of gross remittances of online sellers in compliance with RR 16-2023.

After July 14, local online sellers who fail to submit a sworn declaration of gross remittances that their total income exceeds P500,000 in the previous or current year to the BIR Revenue District Office (RDO) will automatically be deducted from the 1 percent creditable withholding tax by the online selling platform where they are listed.

Online sellers and merchants with an annual income equal to or below P500,000 are exempted from the imposed 1 percent withholding tax provided that they will also submit a sworn declaration stamped and verified by their BIR RDO.

The BIR said the online transactions industry has experienced “significant growth” during the pandemic and until today but most of the online sellers are not paying their just shares in taxes.

“This would be unfair to brickand-mortar stores that are regularly complying with their tax obligations,” the BIR stressed.