The Bureau of Internal Revenue BIR issues Revenue Memorandum Circular 60-2020 which notifies persons conducting business through any forms of electronic media regarding their tax obligations and the registration of their business with the BIR.
The Circular give due notice to all individuals 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.
In the registration of the business/es, please refer to the attached Annex A of this Circular for the basic guidelines. 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 a penalty for late registration.
Likewise, they are encouraged to voluntarily declare their past transactions subject to pertinent taxes and pay the taxes due thereon, without a corresponding penalty, when declared and paid on or before the said date.
All those who will be found later doing business without complying with the registration/update requirements, and those who failed to declare past due taxes/unpaid taxes shall be imposed with the applicable penalties under the law, and existing revenue rules and regulations.
Further, the newly-registered business entities, including the existing registrants, are advised to comply with the provisions of the Tax Code, as amended, and other applicable tax revenue issuances, particularly on the following:
1. Issuance of registered Sales Invoice or Official Receipt for every sale of goods or services to clients/customers/buyers;
2. Keeping of registered Books of Accounts and other accounting records of business transactions;
3. Withholding of taxes, as applicable;
4. Filing of required tax returns; and
5. Payment of correct taxes due on time. All internal revenue officers are enjoined to give this Circular wide publicity as possible.
Refer to the RMC 60-2020 below: