- The Philippines BIR issued Revenue Memorandum Circular No. 8-2024 clarifying the application of the new 1% withholding tax on payments made by online platforms to suppliers of goods and services.
- It specifies the effective date, compliance period, and requirements for sellers/merchants and e-marketplace operators to comply with the withholding tax. Sellers/merchants are required to register with the BIR and submit a copy of the BIR-issued Certificate of Registration to the e-marketplace operator.
- If gross remittances exceed ₱500,000.00, sellers/merchants must submit a Sworn Declaration to the e-marketplace operator.
- Exemptions or lower tax rates require certification to the e-marketplace operator as proof.
Source Orbitax
- Join the Linkedin Group on VAT/GST and E-Commerce HERE
