In what has to be one of the most ill-timed and insensitive decisions made during the Wuhan Virus crisis, the Bureau of Internal Revenue (BIR) issued this week a directive that online sellers must register their businesses and pay the legally mandated taxes, including taxes on past transactions, by July 31 or risk penalties for tax avoidance.
BIR Revenue Memorandum Circular 60-2020, which was dated June 1 but only released to the public on Wednesday, orders “all persons doing business and earning income in any manner or form, specifically those who are into digital transactions through the use of any electronic platforms and media, and other digital means, to ensure that their businesses are registered pursuant to the provisions of Section 236 of the Tax Code, as amended, and that they are tax-compliant. These shall include not only partner sellers/merchants, but also other stakeholders involved, such as the payment gateways, delivery channels, internet service providers and other facilitators.”