Hontiveros seeks suspension of BIR’s tax memo for online sellers until end of 2020

The Bureau of Internal Revenue's (BIR) memorandum circular requiring the registration of online sellers must be suspended until the end of the year, Senator Risa Hontiveros said Tuesday.

She recently filed Senate Resolution No. 453, which urges the BIR to defer the implementation of its Memorandum Circular No. 60-2020 notifying "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 register to ensure that they are tax compliant.

"All those who will register their business activity and/or update their registration status not later than July 31, 2020 shall not be imposed with penalty for late registration," BIR's memorandum circular read.

Applicable penalties will be meted out against those who would be found, later on, doing business without complying with the registration and update requirements, it added.

The Palace, however, clarified that online sellers earning below P250,000 a year will be exempted from taxes.

The Department of Finance also said the memo was released in an effort to have the online businesses registered, not to squeeze money out of the small digital entrepreneurs.

But Hontiveros is not convinced that the memorandum should stay in place, especially amid the COVID-19 pandemic.

"Magulo at mahirap sundin ang BIR memo, lalo na't paiba-iba ang sinasabi ng mga ahensiya ng pamahaalan ukol dito," she said.

"It is best for everybody's interests if the BIR suspends the implementation of the memo until December 31, 2020, while government agencies review and craft better policy guidelines on how online entrepreneurs should register or pay taxes," she added.

Hontiveros further said that the tax authorities should first prepare a facility for online registration to avoid crowding in BIR offices.

Earlier, the senator urged the government to go after POGOs' P50 billion in unpaid taxes before taxing online sellers. — BM, GMA News