BIR: Online sellers, papatawan ng 1% withholding tax | BT - video Dailymotion

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Pag-usapan natin ang utos ng Bureau of Internal Revenue na patawan ng 1% withholding tax ang ilang online sellers.   Balitanghali is the daily noontime newscast of GTV anchored by Raffy Tima and Connie Sison. It airs Mondays to Fridays at 10:30 AM (PHL Time). For more videos from Balitanghali, visit http://www.gmanews.tv/balitanghali.  #GMAIntegratedNews #KapusoStream  Breaking news and stories from the Philippines and abroad: GMA Integrated News Portal: http://www.gmanews.tv Facebook: http://www.facebook.com/gmanews TikTok: https://www.tiktok.com/@gmanews Twitter: http://www.twitter.com/gmanews Instagram: http://www.instagram.com/gmanews  GMA Network Kapuso programs on GMA Pinoy TV: https://gmapinoytv.com/subscribe

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00:00 We will now discuss the order of the Bureau of Internal Revenue to allow 1% withholding tax on some online sellers.

00:08 We are joined by BIR Commissioner Romeo Lumagi Jr. Good morning and welcome to Balitang Hali.

00:15 Good morning to all of us and to all of our listeners.

00:20 Sir, what was the basis for this 1% withholding tax on online sellers?

00:27 Well, it is stated in our law, in Tax Code Section 57, that we can impose a withholding tax of 1% on gross revenues.

00:41 That is our basis.

00:43 I just want to clarify that what we are implementing now is not a new WIS.

00:49 This is just a way for WIS to collect that all online sellers are subjected,

00:57 from the very beginning when they started their business, they should have registered with our agency and should be paying income tax.

01:05 So the withholding tax is the real tax, the income tax.

01:09 The withholding tax is just a way for income tax to be collected.

01:14 Okay. In your projection, how much tax will you be able to collect from this?

01:19 Well, for now, because we cannot see the entire industry of online sellers,

01:25 what we know is that this is a huge number.

01:28 So in terms of estimates or figures, definitely we will reach a billion-billion collection here because online sales are really increasing.

01:40 Okay. But how will this be balanced? Because some are registered,

01:44 while others are really saying no because they will avoid paying this much because their income is not that big.

01:53 What will be your measure to make it equal for everyone to be able to pay?

01:59 Well, that is why we did this and we issued our revenue regulations

02:07 because there are many who are not registered and there are many who are registered.

02:14 So now, in this process, we can make sure that most or hopefully all online sellers will register.

02:23 It doesn't mean that the registered one should pay a tax.

02:29 That's why we also put a threshold amount of P500,000 that if your sales do not exceed P500,000 in a year,

02:39 you will not be subject to this withholding tax.

02:43 When will this be implemented and will it also include those who are abroad?

02:47 This implementation is effective this January,

02:53 although we are giving them a threshold because the ones who will pay the withholding tax will be the online platforms.

03:03 So it is effective. As to when they will be able to do it based on their systems,

03:08 we still have a threshold to make sure that all systems are set.

03:15 Now, for the online sellers abroad, it is different because sometimes the online sellers abroad are not registered.

03:27 If they are not registered and they are considered as a business that is not engaged in trade or business in the Philippines,

03:35 meaning they are not registered, their way of life will be different.

03:41 That's why the so-called final withholding tax is bigger.

03:45 Here in the local and registered, their withholding tax is creditable withholding tax,

03:50 meaning it is smaller, only 1/2 of 1% of the gross selling price.

03:55 It is bigger if it is foreign that is not registered in the Philippines.

03:58 But the way of life there is different.

04:00 Commissioner, the question of many online shopping vendors is, will they pay more for what they buy online because of this?

04:06 We should not be worried. When it comes to consumers, we should be happy that we are implementing this.

04:16 First of all, we are receiving a lot of complaints from online sellers against online sellers who are selling defective products.

04:26 Sometimes they pay but no product arrived or sometimes a different product arrives.

04:32 When they complain, they cannot be chased because these online sellers are not registered.

04:40 Through this, we can ensure that all the products we buy online are made by our businessmen because they are registered in the government.

04:51 You have an interest in this and you should be happy that we are requiring them to register.

04:57 Second, we should not be worried that the price will increase because we are not imposing a new tax.

05:06 The tax is for all the earners. Generally, all the earners and all the businessmen need to pay income tax.

05:15 It depends on the sales whether there is a payment or not.

05:20 With this imposition of withholding tax, we are not imposing a new tax so there should be no effect on the price of the products.

05:32 Of course, Commissioner, they should register so they can be chased if there is a need to chase sellers online.

05:37 That's right. This is a good solution for everyone.

05:43 First of all, again, we are not imposing a new tax. This is more on tax administration only.

05:50 We can ensure that a portion of their tax can be paid and we can see that the online sellers are registered.

05:59 Second, we can ensure that the sellers are legitimate online.

06:06 Third, the price should not increase because we are not imposing a new tax.

06:12 We can collect a lot of money from this so it will help our country.

06:18 Very quickly, Commissioner, how many percent are registered and not registered?

06:23 Well, in terms of percentage, again, we have not seen the whole picture of how many are really doing business online.

06:33 We only know that it's a huge number.

06:36 So in terms of percentage, we cannot answer how many percent are registered and not registered.

06:42 Thank you very much, Bureau of Internal Revenue Commissioner Romeo Lumagi Jr.

06:51 [music]

BIR: Online sellers, papatawan ng 1% withholding tax | BT

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