Philippine Bureau of Internal Revenue Implements New Tax Regulation

Jul.18.2024
Philippine Bureau of Internal Revenue Implements New Tax Regulation
The Philippine Bureau of Internal Revenue (BIR) implements new tax law to collect 1% withholding tax from online merchants.

According to a report from the Inquirer on July 17th, the Philippines Bureau of Internal Revenue (BIR) announced on Wednesday the implementation of Revenue Regulation No. 16-2023, starting from July 15th. This regulation imposes a 1% withholding tax on online sellers with annual gross sales exceeding 500,000 pesos (approximately $8,579 USD), aimed at optimizing the tax structure and ensuring tax fairness.


The Commissioner of the Bureau of Internal Revenue in the Philippines, Romeo "Jun" Lumagui Jr., emphasized in a media interview that the new tax measures will not lead to an increase in online commodity prices. Unlike value-added tax (VAT), this tax is classified as income tax and falls under the category of withholding tax.


Revenue Commissioner Romaguera also pointed out that the implementation of withholding tax will help the government to timely understand the dynamics of domestic online transactions, and is expected to generate billions of pesos (equivalent to about $17.15 million) in new revenue from large online merchants. The BIR has been in communication with online platform suppliers such as Shopee and Lazada since last year regarding the withholding tax system, and these platforms have expressed their support and promised not to sell products from unregistered merchants.


The Bureau of Internal Revenue (BIR) is requiring foreign businesses to register as online sellers in the Philippines in order to pay withholding taxes. Foreign companies that are not registered will face a final withholding tax rate of 25%.


Director Lu Magui stated that in the future, the BIR will shift its focus to the tobacco industry. Starting from June, all importers and manufacturers of e-cigarettes must attach tax stamps to their products; if an e-cigarette product does not have an internal tax stamp, it means that no consumption tax has been paid. The product will be confiscated by the financial department, and business owners may face criminal liability for tax evasion.


We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

BAT Restructuring to Affect 9,000 Roles as Tobacco Group Pushes Cost Cuts and AI
BAT Restructuring to Affect 9,000 Roles as Tobacco Group Pushes Cost Cuts and AI
British American Tobacco (BAT) plans to cut about 5,500 jobs globally and shift around 3,500 roles to strategic partners by the end of 2026, affecting about 9,000 roles in total, as the company seeks to simplify operations, strengthen technology capabilities and deliver £600 million in annual savings by 2028.
BAT
Jun.29
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina’s new state budget introduces additional vape retail regulations, including a $1,000 tax on vape shops and mandatory age verification requiring customers to be at least 21.
Jul.08
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
Former FDA Scientist Questions ZYN Review Over Pouch Material and Microplastic Risk
A former FDA toxicologist has questioned whether the agency fully assessed the material used in ZYN nicotine pouches before authorizing them for sale, raising concerns over possible microplastic exposure, according to STAT and The Examination.
Jul.16
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii Restricts Vape Sales to FDA-Authorized Products, Disposable E-Cigarettes to Be Banned
Hawaii has enacted two new e-cigarette laws that significantly tighten market access requirements, requiring products to meet FDA authorization standards and banning disposable e-cigarette sales starting in 2027.
Jul.08
ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA Americas Meeting Calls for Balanced Regulation as Tobacco Growers Warn of Pressure on Farms and Legal Supply Chains
ITGA said tobacco grower organizations from five Americas countries called for stronger regional cooperation and balanced regulation, warning that restrictive policies could pressure farmers and legal supply chains. The article also provides data on major tobacco-producing countries in the Americas.
Special Report
Jun.02
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
U.S. Convenience Stores Rebalance Backbar as Nicotine Pouches Outpace Cigarettes
As cigarette volumes continue to decline, U.S. convenience-store operators are reconfiguring backbar space to accommodate modern oral nicotine products such as nicotine pouches. Industry data show nicotine pouches have become one of the fastest-growing nicotine categories while generating higher margins for retailers.
Jun.12