BIR: Online sellers must now pay withholding tax

MANILA, Philippines — The Bureau of Internal Revenue (BIR) on Tuesday said electronic marketplace operators such as Shopee and Lazada have started collecting the withholding tax on sellers or merchants using their platforms.

“Electronic marketplace operators will begin imposing a withholding tax against their sellers/merchants starting July 15, 2024. We have already extended this by 90 days. No further extensions will be given,” BIR Commissioner Romeo Lumagui Jr. said in a statement.

In December last year, the BIR issued Revenue Regulation 16-2023 requiring online merchants with earnings of more than P500,000 annually to be subjected to a 1-percent withholding tax.

Click here for original source.