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Taxes of Content Creators and Influencers in the Philippines

As social media platforms have grown in popularity, the number of content creators and influencers in the Philippines has increased exponentially. With the rise of social media, many creators have been able to monetize their content, making a career out of their passion. However, with this success comes the need to pay taxes. In this article, we will discuss why Filipino influencers and content creators need to pay taxes.

First and foremost, it is important to understand that any income earned from online content creation is subject to taxation. Just like any other profession, content creators and influencers must declare their earnings and pay taxes accordingly. Failure to do so can result in penalties and legal consequences.

As a content creator, I have personally experienced the benefits of paying taxes. One of the most significant advantages is that it has allowed me to book bigger gigs and clients. By issuing official receipts and being a registered taxpayer, I have gained the trust and confidence of larger clients, who are more likely to work with registered businesses or individuals. This has allowed me to expand my business and increase my income significantly.

In addition, being a registered taxpayer has given me access to financial products with lower interest rates. Since I have a credit history, I have been able to apply for loans and other financial products from reputable banks with lower interest rates compared to those available to non-registered businesses or individuals. This has helped me grow my business and manage my finances more efficiently.

It is important to note that the Bureau of Internal Revenue (BIR) considers online content creation as a business, which means that it is subject to the same tax laws as any other business. This includes filing for taxes, securing a business permit, and paying income tax, value-added tax (VAT), and percentage tax, among others.

Some content creators may argue that their income is not significant enough to be taxed. However, it is important to understand that there is no minimum income requirement for paying taxes. Any income, regardless of its amount, is subject to taxation. In addition, the BIR may conduct audits to ensure that all income has been properly declared and taxed.

In recent years, the BIR has been cracking down on tax evaders, including content creators and influencers who fail to declare their income. The BIR has been monitoring social media platforms to identify those who may not be paying their taxes. Those found to be evading taxes may face penalties and even imprisonment.

Paying taxes is not just a legal requirement, but it is also a responsibility to the community. Taxes are used to fund public services and infrastructure, such as schools, hospitals, and roads. By paying taxes, content creators and influencers are contributing to the development of the country and helping to build a better future for all Filipinos.

In conclusion, Filipino influencers and content creators need to pay taxes. Any income earned from online content creation is subject to taxation, and failure to pay taxes can result in penalties and legal consequences. It is important for content creators and influencers to understand their tax obligations and comply with the law. By paying taxes, they are not only fulfilling their legal responsibility, but they are also contributing to the development of the country. As a content creator, paying taxes has allowed me to operate my business with integrity and professionalism, gain access to bigger opportunities and financial products, and contribute to the growth and development of the country.

For assistance in filing your taxes, you can check out Taxumo. All you need to do is enter your income and expenses and the system computes your tax dues for you. You can also file and pay using Taxumo. Taxumo is a BIR accredited tax software provider and is also the first startup in the Philippines to be granted the an IPP (Investment Priority Plan) by the DTI Board of Investment.

https://www.taxumo.com/blog/freelance-tax-philippines/

If you have questions, you can email their customer service team at customercare@taxumo.com. They are very helpful! They can reply during weekdays from 9am to 6pm.

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What I Learned about Finances, Tax Planning and Myself

Goodbye, Influencers. Hello, Thought Leaders!

Our office is always quite a lovely and chaotic place to be in. Even though we (Taxumo) deal with one of the most tedious and complicated processes in a business or a freelancer’s life, our team still remains joyous and positive about this reality. We still have our daily banters and laughs. One of the things that we talked about recently was to urge one of us, Kuya Jojo, to be an influencer. And I really think that he could be one!

Photo by BRUNO CERVERA on Unsplash

Since we’re talking about influencers, I’d love to share my opinion on such a term.

I think that each one of us has the ability to “influence” another individual. Hey, I could influence my husband right this instant, but probably not when it comes to exercising… haha! The thing about influencing is that WE could ALL possibly do it given we have these things.

  1. Right audience: When I say the RIGHT audience, it means that the person has a receptive audience who trusts him/her. As you know, trust is built over time, and trusting a person stems from a previously established relationship or at least from borrowed trust from another person or entity (example: referred by another trusted friend, or they have mutual friends, etc.).
  2. Right message: RIGHT message means content that triggers a response from the audience, and this may be because it’s a shared, relatable experience. It may be something also that appeals to the emotion of the chosen audience.
  3. Right timing: If you want to get people to buy a cold drink, the perfect time will be on a hot day. If you want to get people to go to the gym, the perfect time to tell them will probably be after the holidays. Timing is very important in convincing people to do a certain action.
  4. Right “messenger”: Which I will expound on more below!

Now looking at people whom we consider influencers, you’ll notice that what differentiates any Tom, Dick and Harry from them is just basically the scale of their influence. But don’t mistake the scale of influence with the number of followers. One may have a massive amount of followers and yet, still have a minimal scale of influence.

The thing though about Influencer Marketing is that only a few get to see its benefits. And as a marketer, it’s mostly because of the lack of tracking of metrics and key performance indicators. Understandably so, we can’t tell the influencer to wear a shoe that she endorses and give a code to everyone who compliments her shoe. That would just be a bit too forced! But we all still try our best (brands, agencies, influencers) to work towards understanding how influencer marketing can work for all of us.

In this journey of understanding the world of influencers, many have become disappointed and disheartened.

My personal belief is that a lot of confusion stems from the fact that the term “influencers” itself is a bit unclear and confusing for many (since we always think it’s the number of followers). A lot of the content creators who strive to be “influencers” end up disheartened when they don’t easily get to their target number of people. A lot of brands and agencies are also disappointed because the influencer-strategy that they implemented didn’t result to achieving their target objectives.

Instead of striving to be Influencers, strive to be Thought Leaders. The reason why I like this term is that it involves not only gaining a number of followers, but going to the extent of being an authority or an expert in a certain field. People will naturally will flock to you because of what you know and the value that you can give them. With the exchange of values, a true relationship is built.

I also like this the term thought leaders, because it feels like these people are thought of to be partners of the brands who commission them. These people think of ways on how to improve the industry, improve the lives of their followers — basically, they truly and genuinely care.

Maybe the change of terminology will help, or maybe it won’t. These things actually make the world of marketing and advertising such a fun industry, don’t you think? 🙂

Hope I influenced you today. 🙂