The Bureau of Internal Revenue (BIR) has released a new circular, Revenue Regulation (RR) No. 014-2024, requiring all online businesses to register with the tax agency.
The new regulation covers all online firms including e-marketplace platforms, digital content creation, and streaming services that are income-generating as well as e-retailing of goods and services, freelance services supplied over the Internet, and other forms of businesses conducted online.
The circular, issued on Aug. 15, outlined the guidelines, procedures, and requirements for implementing the mandatory registration of persons engaged in business, including brick-and-mortar stores and online trade or business under Section 236(A) of the Tax Code and Republic Act No. 11967 known as the Internet Transactions Act of 2023.
The BIR warned that failure to register shall be subject to administrative penalties and criminal liabilities.
The penalties awaiting persons found violating the registration requirement include P1,000 for late registration; P1,000 per business name or store name for failing to register the store name or business name; and P1,000 for every violation per business name or store name for failing to post the Certificate of Registration (COR) or Electronic Certificate of Registration (eCOR) on the place of business or website, platform or application.
The BIR also warned that should any covered person engaged in business fail to register, the BIR commissioner or his authorized representative will issue a closure order against the business operation including appropriate charges under the Run After Tax Evaders Program.
