Citing the tax reform for acceleration and inclusion law, Dominguez said that small entrepreneurs earning less than P250,000 annually enjoy zero income tax, while their sales below P3 million are exempted from value-added tax .
“Self employed individuals are subject to the graduated rates in the Tax Code. For instance, a seller earning less than P250,000 will be subject to zero income tax. The rates for individuals have really gone down since TRAIN,” Dominguez said. “If they have any tax liabilities that are unpaid for prior periods, then they certainly can be covered by a general tax amnesty. That is why we are still asking Congress to pass the legislation on tax amnesty,” Dominguez said.
In its June 1 RMC No. 60-2020, the BIR was reminding all persons doing business and earning income through digital means to ensure that their businesses are registered, or their registrations are updated. This is not the first time the BIR has initiated a campaign on digital transactions. In 2013, the tax agency had issued RMC No. 55-2013 reminding taxpayers that online businesses are not treated differently from brick-and-mortar businesses.
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