The Internal Revenue Service advised online retailers to report their business practices and to file their taxes no later than July 31, 2020.
BIR said it issued Memorandum Circular 60-2020 “to give notice to 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 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 or merchants, but also other stakeholders involved such as the payment getaways, delivery channels, internet service providers, and other facilitators,” the BIR said.
All that report their business activities or change their registration status by July 31 at the latest will not be penalized for late registration.
Online sellers are recommended to report past purchases subject to applicable taxes and pay due taxes as reported and charged on or before the said date, without subsequent penalty.
“All those who will be found later doing business without complying with the registration or update requirements, and those who failed to declare past due taxes or unpaid taxes shall be imposed with the applicable penalties under the law, and existing revenue rules and regulations,” BIR warned.
According to the bureau, newly licensed company entrants, including current registrants, are required to conform with the Tax Code requirements and other related tax revenue issuance, primarily as follows:
- Issuance of registered sales invoice or official receipt for all purchases of products or services to clients, customers, or purchasers
- Holding track of payroll records and other corporate activity reports
- Tax reductions, where appropriate
- Providing the necessary tax returns
- Right tax payment due on time
So why do you need a lawyer for your online business in the Philippines? The answer is simple: with these processes, you need someone with expert knowledge of taxation and business laws.
Here Are The Top Reasons Why You Need To Consult With The Top Law Firms In The Philippines:
- Navigate the various types and specifications of applicable legal documents, such as incorporation papers.
- Compensation ensuring the registration is completed right.
- Allowing you to concentrate on your market issues, so you don’t need to waste hours researching the legal procedures.
- Help for activities such as labeling the signature, updating the lease papers, addressing potential legal arrangements, and planning ways of incorporation.
- Suppliers with electronic legal types don’t always get things correctly. Businesses are not one-size-fits-all, and it is not always the case that uniform legal contracts operate.
Yap and Associates is a full-service law office in Makati City, near Bonifacio Global City, Taguig. Our lawyers are adept in handling business registration, corporate, tax, labor, and civil cases for corporations and individuals.
If you’re looking for one of the best top law firms in the Philippines, contact us today!