Following its announcement that online sellers will start paying taxes by December, the BIR admitted that they have yet to convince influencers to pay taxes.

“We’re engaging the social media influencers and we’re trying to win their side,” Assistant Commissioner Jethro Sabariaga told reporters at an SGV Tax Symposium.

As much as the BIR wants to impose taxes on influencers, Sabariaga said that they are asking them to pay voluntarily while they iron out proper guidelines. He also adds that this is a better approach than being unfriendly with these influencers.

Back in 2021, the BIR probed 250 social media influencers for alleged tax evasion, which later prompted 105 social media influencers to comply and register with the BIR. The BIR’s softer stance on taxing influencers is because the income they earn generally comes from tech giants like YouTube, which are based abroad.

While the BIR is working to get information from foreign tax jurisdictions or foreign corporations before they can impose the proper taxes, P&A Grand Thornton Tax Advisoring Head Eleanor Roque said the best that the government agency can do is to send letters to social media personalities and remind them to register and comply with tax rules.

According to industry estimates, an influencer with a million followers can earn anywhere between Php 100,000 to Php 150,000 per Instagram post. Content creators who have a follower count below six digits can command anywhere between Php 25,000 to Php 40,000.

Social media has become a big influence on consumer spending in recent years, with various companies shifting from traditional advertising to social media marketing. Influencers play a vital role in social media marketing, where their posts on platforms like Facebook, Instagram, YouTube, and TikTok help in promoting various products and services.