Summary
RMO No. 29-2021 directs BIR offices to monitor and verify the tax compliance of online merchants, social media influencers and other businesses operating through digital or online platforms.
Key points
- Special Task Force. A Special Task Force (STF) is created in every Revenue Regional Office and in the Large Taxpayer Service. It gathers information and builds a database of online sellers of goods and services, social media influencers (SMIs) and properties leased out by online lessors in its jurisdiction.
- Registered taxpayers. The STF checks payment of the annual registration fee, issuance of sales invoices or official receipts, keeping of books of accounts, filing of returns and payment of taxes, withholding and remittance, and filing of information returns. It may conduct a Tax Compliance Verification Drive (TCVD) after checking the taxpayer’s registration information in the BIR database.
- Letter of Authority. After evaluation, the STF lists taxpayers it recommends for a Letter of Authority (LOA) from the RDO, Large Taxpayers Division/Large Taxpayers Audit Division, Regional Investigation Division or National Investigation Division having jurisdiction.
- Unregistered taxpayers. The STF notifies them to register and voluntarily pay unpaid taxes on past transactions. If they do not do so within the time in the notice, the case goes to the concerned Regional or National Investigation Division for preliminary investigation, which may lead to an LOA for a Run After Tax Evaders (RATE) case or other enforcement.
- Verification and reporting. Voluntary declarations are verified through the Exchange of Information mechanism under valid tax treaties, if applicable. The STF submits a Monthly Accomplishment Report on or before the 5th day of the following month, and non-compliance with the Order subjects revenue personnel to administrative sanctions.
Who is affected
- Online merchants and sellers of goods and services
- Social media influencers
- Online lessors of property
- Revenue Regional Offices and the Large Taxpayer Service
Deadlines and effectivity
- Monthly Accomplishment Report: on or before the 5th day of the following month
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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