Tax for Social Media Influencers and Content Creators

Are you a social media influencer or content creator in the Philippines? Do you earn money from your online content? The Bureau of Internal Revenue (BIR) wants you to know that your earnings are taxable. This guide will help you understand and follow the rules so you can keep growing your career without any tax problems.

The BIR made it clear in Revenue Memorandum Circular (RMC) No. 97-2021: if you earn income from a digital platform, you are a taxpayer.

Who is an Influencer for Tax Purposes?

The BIR has a wide definition. If you make money from your online presence, you are included. This means:

  • Bloggers and Vloggers

  • Content creators on YouTube, TikTok, or other social media

  • Online gamers and streamers

  • Podcasters and digital artists

  • Affiliate marketers

If you get paid for what you do online, you have tax responsibilities.

Step 1: Register with the BIR

This is the first and most important step.

  • If you are new and only earn from online work: You must register as a self-employed individual. You will use BIR Form 1901 and go to the BIR office in your area.

  • If you have a regular job and also earn online: You already have a TIN from your employer. You just need to update your registration with BIR Form 1905 to show you are now a "mixed-income earner."

Step 2: Understand Your Taxes

Once you are registered, you need to know what taxes to pay. You have options, thanks to the TRAIN Law.

Income Tax

You can choose one of these two ways to pay:

  1. Graduated Tax Rate: Your income is taxed from 0% to 35%. To compute this, you can lower your taxable income by deducting your business expenses. You have two ways to do this:

    • Itemized Deductions: This means you list and prove all your legitimate business expenses using official receipts and invoices.

    • Optional Standard Deduction (OSD): This is a simpler choice. You can deduct a flat 40% of your gross income, without having to list or prove every single expense. This is often a great option for influencers who have many small expenses that are hard to track.

  2. 8% Optional Tax: If your yearly income is ₱3,000,000 or less, you can choose to pay a flat 8% income tax on your gross sales. This is often the simplest and best choice for many.

Business Tax

This is an extra tax on top of your income tax.

  • If your income is ₱3,000,000 or less: You will pay a 3% Percentage Tax. (If you choose the 8% optional tax rate, you don't pay this anymore.) You will use BIR Form 2551Q for this.

  • If your income is more than ₱3,000,000: You must register for and pay 12% Value-Added Tax (VAT). You will use BIR Form 2550Q for this.

Withholding Tax

Sometimes, the companies that pay you will already take out a tax. This is called Creditable Withholding Tax (CWT). For example, a brand might give you a payment minus a 5% or 10% tax. This CWT is not an extra tax; it's an advance payment you can use as a credit when you file your own income tax.

Step 3: Keep Good Records and File on Time

To be a compliant taxpayer, you must:

  1. Issue Invoices: For every sale of service or good, you must give a BIR-registered Invoice. The old "Official Receipt" is now for payments only, not for the sale itself.

  2. Keep Books of Accounts: You must have books to record all your income and business expenses.

  3. File Taxes on Time: This means filing and paying your taxes every quarter and every year. You will use these forms:

    • Quarterly Income Tax Returns: BIR Form 1701Q

    • Annual Income Tax Return: BIR Form 1701

    • Quarterly Percentage Tax Returns: BIR Form 2551Q

    • Quarterly VAT Returns: BIR Form 2550Q

If you do not follow these rules, the BIR can charge you with fines, extra fees (surcharges), and interest. They can even do a tax audit.

By being a compliant taxpayer, you make your online career a real, legal business and avoid future problems.

Need help with your taxes as a social media influencer? Aboveboard provides clear and simple tax advice.

Contact us today for a free consultation to make sure your tax journey is smooth and correct.

Disclaimer: This article is for general information only. Tax laws are complex and can change. Always ask a tax expert or check the official BIR website for advice specific to your situation.