DOF on registration of online business: 'That's the law'

The Department of Finance (DOF) on Wednesday said it is only implementing tax laws when it required online sellers to register their business, which is an obligation of all entrepreneurs in the country.

According to Finance Secretary Carlos Dominguez III, the department -- which counts the Bureau of Internal Revenue (BIR) as an attached agency -- is implementing the law to provide a level playing field among all businesses.

"First of all, we are implementing tax laws. We are not inventing these tax laws," he said during the Kapihan sa Manila Bay virtual forum.

His remarks came after the suggestion of Senator Risa Hontiveros-Baraquel for the BIR to suspend its circular mandating all online business to register by July 31.

Under the BIR Revenue Memorandum Circular 60-2020, the taxman mandated all persons doing business and earning income in any manner or form, specifically those who are into digital transactions, to register and ensure that they are tax compliant.

"The law says first you have to register and if you register and your sales are less than P3 million a year, you don't have to pay VAT but you have to pay tax on your profit," said Dominguez.

"That is the citizen's obligation to register, and he has also an obligation to pay a tax," he added.

The government earlier clarified that businesses earning less than P250,000 a year are exempted from paying taxes.

The DOF also earlier said that the measure was released in an effort to have the online business registered, and not to squeeze money out of the small digital entrepreneurs.

"It's to level the playing field and it's not targeting anyone. That's the law. We have to implement the law," said Dominguez.—AOL, GMA News