The Bureau of Internal Revenue (BIR) issued Thursday a memorandum circular to online sellers doing business and earning income using social media platforms and other digital means to ensure that their businesses are registered according to Tax Code and that they are “tax compliant”.

Revenue Memorandum Circular 60-2020 signed by BIR Commissioner Carlo Dulay on June 10 not only includes partner sellers and merchants but also “other stakeholders involved such as payment gateways, delivery channels, internet service providers, and other facilitators”.

Businesses that will register not later than July 31, 2020, shall not be penalized for late registration, the circular said.

Registration must be done in the Revenue District Office (RDO) that holds jurisdiction over the place of the individual taxpayer. (See attached copy of document)


Read the basic registration guidelines from the BIR.

Likewise, online sellers and other individuals who do digital transactions are encouraged to voluntarily declare their past transactions “subject to pertinent taxes and pay the taxes due without corresponding penalty when declared and paid on or before July 31”.

The circular said all those who will be found still doing business later without complying with the registration and updating requirements and those who will fail to declare past due or unpaid taxes shall be penalized under the law and existing revenue regulations.

Newly-registered business entities, including existing registrants, are advised to comply with the following:

1. Issuance of registered Sales Invoice or Official Receipt for every sale of goods and services to clients and customers;
2. Keeping of registered Books of Accounts and other accounting records of business transactions;
3. Applicable withholding taxes;
4. Filing of required tax returns; and
5. Payment of correct taxes due on time.