The Bureau of Internal Revenue (BIR) has introduced new policies under Revenue Regulations No. 15-2024 (RR No. 15-2024), which aim to level the playing field between traditional brick-and-mortar businesses and online enterprises.
The move comes amid the rapid growth of e-commerce and online platforms, which BIR Commissioner Romeo D. Lumagui Jr. says require equal taxation and regulation to ensure fairness across all sectors.
Under the new rules, businesses, whether operating physically or online, must comply with the same tax registration requirements.
The regulations highlight that non-compliance could result in business suspension, with online entities facing potential takedown orders similar to the closure orders enforced against physical stores.
“We advise that e-marketplace platforms, online sellers, and content creators should strictly follow RR No. 15-2024 as soon as possible. It is unfair to the retail industry or to sectors with brick-and-mortar stores if online businesses are not regulated and taxed in the same manner,” Lumagui emphasized.
Additionally, Section 11 of RR No. 15-2024 imposes responsibilities on lessors, sub-lessors, and digital platform operators.
They are now required to ensure that their tenants, both online and in physical locations, are properly registered with the BIR. Failure to do so could be considered aiding in tax violations.
The BIR will closely monitor major digital platforms, including Lazada, Shopee, and Tiktok, to ensure that all online sellers and content creators are compliant.
Similarly, commercial establishments like malls will be checked for their tenants’ tax registration status.
“Allowing lessees or online sellers/merchants to engage in business without BIR registration will be considered a violation of our tax laws,” Lumagui warned.
RR No. 15-2024 is part of the BIR’s broader initiative to crack down on tax evasion, including its Run After Tax Evaders program, ensuring that all businesses contribute fairly to the country’s tax revenue.
