SOCIAL MEDIA INFLUENCERS ARE SUBJECT TO INCOME TAX, VALUE-ADDED TAX (OR PERCENTAGE TAX); SHALL REGISTER WITH THE BIR AND FILE TAX RETURNS; SUBJECT TO ROYALTY TAX AND FOREIGN TAX CREDIT; BIR MAY OBTAIN INFORMATION FROM FOREIGN COUNTRY (Revenue Memorandum Circular No. 97-2021, August 16, 2021)

SOCIAL MEDIA INFLUENCERS ARE SUBJECT TO INCOME TAX, VALUE-ADDED TAX (OR PERCENTAGE TAX); SHALL REGISTER WITH THE BIR AND FILE TAX RETURNS; SUBJECT TO ROYALTY TAX AND FOREIGN TAX CREDIT; BIR MAY OBTAIN INFORMATION FROM FOREIGN COUNTRY (Revenue Memorandum Circular No. 97-2021, August 16, 2021)

Social Media Influencers defined	Includes all taxpayers, individuals or corporations, receiving income, in cash or in kind, from any social media sites and platforms (Youtube, Facebook, Instagram, Twitter, TikTok, Reddit, Snapchat, etc.) in exchange for services performed as bloggers, video bloggers or “vloggers’, as an influencer, in general, and from any other activities performed on social media sites and platforms.
Classification	Social media influencers other than partnership and corporations are classified as persons engaged in trade or business as sole proprietors.
Covered taxes	Income Tax Royalties* Percentage Tax or Value-Added Tax
Requirements	Registration and Updates Maintain Books of Accounts Filing of Tax Returns and Payment of Taxes
Penalties for Failure to Comply	Attempt to Evade or Defeat Tax – penalty P500,000 to P10,000,000 and imprisonment of not less than 6 years but not more than 10 years Failure to file return, keep any record, or supply correct accurate information etc. – Fine of not less than P10,000 and imprisonment of not less than 1 year but not more than 10 years
*On Royalties	Google LLC, owner of YouTube, informed the public that payments shall be treated as royalties. Google LLC shall collect tax information, withhold taxes, and report to the US tax authority the royalty. Taxpayers shall secure a Tax Residency Certificate from the BIR-ITAD to establish Philippine residence and to claim treaty benefit (e.g. 15% instead of 24% withholding). Resident Citizens may claim tax credit against taxes paid in foreign countries. The taxpayer has to declare in the ITR the royalties from YouTube and pay the remaining tax due.
Tax Administration	The concerned BIR office may coordinate with BIR-ITAD, who shall request information from foreign jurisdiction.

BIR FORMS 2307 AND 2316 SHALL BE STORED AND SUBMITTED TO THE BIR (Revenue Regulations No. 16-2021, August3, 2021)

Submission of BIR Form 2307 as an attachment to SAWT
- Scan the original copies of the BIR Form 2307 through a scanning machine or device
- Store the soft copies of BIR Form 2307,using the file format and naming conventions prescribed under the available Modes or submission facilities of the BIR; and
- Submit the soft copies of the said BIR Form in accordance with the revenue issuances governing the selected modes or submission facilities of the BIR.
Submission of BIR Form 2316
- Scan the original copies of the BIR Form 2316 through a scanning machine or device
- Store the soft copies of BIR Form2316, using the file format and naming conventions prescribed under the available Modes or submission facilities of the BIR; and
- Submit the soft copies of the said BIR Form in accordance with the revenue issuances governing the selected modes or submission facilities of the BIR.

AVAILMENT OF ESTATE TAX AMNESTY IS EXTENDED UNTIL JUNE 14, 2023; PROOF OF SETTLEMENT OF ESTATE (JUDICIAL OR EXTRA-JUDICIAL) NEED NOT ACCOMPANY THE RETURN AT THE TIME OF FILING BUT REQUIRED BEFORE E-CAR IS ISSUED. (Revenue Regulations No. 17-2021, August 3, 2021)

Deadline for submission of Estate Tax Amnesty Return (ETAR) (together with the Acceptance Payment Form (APF) and complete documents	Not later than June 14, 2023 After payment, the duly accomplished and sworn ETAR and APF with proof of payment, together with the complete documentary requirements shall be immediately submitted to the RDO in triplicate copies. Failure to submit the same until June 14, 2023 is tantamount to non-availment of the Estate Tax Amnesty and any payment made may be applied against the total regular estate tax due inclusive of penalties.
BIR review period	Within 5 working days from the receipt of the documents, the concerned RDO shall either: Endorse the APF for payment of the estate amnesty tax; or Notify the taxpayer of any deficiency in the application Only the duly endorsed APF shall be presented to and received by the AAB or RCO
Proof of settlement of estate (judicial or extrajudicial) required?	Need not accompany the ETAR if it is not available at the time of filing Required before electronic Certificate Authorizing Registration (eCAR) is issued
Proof of estate settlement includes properties not indicated in the ETAR filed	Property will be excluded from eCAR, unless additional estate tax amnesty payment shall be made if the submission is within the amnesty period; Otherwise, the additional estate tax to be paid for the additional properties indicated in the EJS or Court Order shall be subject to applicable estate tax rate including interests and penalties.
One eCAR per property	1 eCAR shall be issued per real property Separate eCAR shall be issued for personal properties Until such time that the eCAR system is capable of generating 1 eCAR for all properties covered by a single transaction.

BIR RULINGS

Joint venture or consortium formed for the purpose of undertaking construction projects is not taxable as a corporation, provided the joint venture should be:
- For the undertaking of a construction project
- Should involve jointing or pooling of resources by licensed local contractors registered with PCAD
- Local contractors are engaged in construction business;
- Joint venture must also be registered with PCAB
Furthermore, the joint venture is exempt from income and withholding tax and is not required to file quarterly and final adjustment returns. However, the net income of the co-venturers derived from the Joint Venture Project is subject to creditable withholding tax and the same shall be remitted to BIR by the latter before the distribution of net income as the co-venturers are separately subject to regular corporate income tax. (BIR Ruling No. JV-056-21, March 2, 2021)
A non-stock and non-profit corporation with primary purpose of being an educational institution is exempted from income tax and VAT only on revenues or receipts generated from:
- Tuition fee and other school fees: and
- Income derived from the operation of cafeterias/canteen, dormitories, and bookstores located within its premises, owned and operated by the corporation to be actually, directly and exclusively used for educational purposes.
However, the corporation is liable to all other taxes. (Certificate of Tax Exemption No. SH30-054-21, March 1, 2021; SH30-055-21, March 1, 2021; SH30-059-21, March 3, 2021; SH30-060-21, March 3, 2021; SH30-061-21, March 3, 2021)
The classification of a particular real property as being capital or ordinary asset does not depend upon its actual use or the purpose for its acquisition, but on the nature of the business of its registered owner. To be considered as habitually engaged in the real estate business, the taxpayer must consummate during the preceding year at least 6 taxable real estate sale transaction (OT- 065-2021, March 10, 2021)

SOCIAL MEDIA INFLUENCERS ARE SUBJECT TO INCOME TAX, VALUE-ADDED TAX (OR PERCENTAGE TAX); SHALL REGISTER WITH THE BIR AND FILE TAX RETURNS; SUBJECT TO ROYALTY TAX AND FOREIGN TAX CREDIT; BIR MAY OBTAIN INFORMATION FROM FOREIGN COUNTRY (Revenue Memorandum Circular No. 97-2021, August 16, 2021)

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