Lawmakers question BIR's monitoring of social media creators for tax compliance

At a House Tri-Committee hearing on Tuesday, February 18, 2025, lawmakers questioned the Bureau of Internal Revenue (BIR) about its monitoring of social media content creators for tax compliance.

Deputy Minority Leader ACT Teachers Rep. France Castro inquired if the BIR was effectively collecting taxes from online content creators who earn foreign income, emphasizing the need to generate revenue from these engagements.

The BIR stated that it has been monitoring since 2021 and relies on voluntary income declarations from influencers because tracking foreign earnings is challenging.

Lawmakers also questioned why the BIR waits for voluntary declarations instead of obtaining data directly from social media platforms. The BIR explained that existing tax laws restrict their ability to investigate any taxpayer without specific justification.

Revenue Memorandum Circular 97-2021 authorizes the BIR to obtain information through Exchange of Information provisions and conduct full-blown investigations against non-compliant influencers.

Tri-Committee members requested the BIR to provide a report on the number of taxed social media influencers since 2021, with BIR legal representative Tobias Arcilla agreeing to comply.

Congress may need to amend tax laws to address potential loopholes in effectively collecting taxes from online content creators.