Starting October 12, 2024, in compliance with BIR Revenue Regulations (RR) No. 16-2023 and Revenue Memorandum Circular (RMC) 8-2024, PayMongo will be implementing a deduction of 1% creditable withholding tax on local sellers/merchants on 50% of their gross remittances exceeding P500,000.
The Bureau of Internal Revenue pushed for the regulation primarily to:
Enable the collection of taxes from all online sellers, thereby promoting tax compliance and contributing to the country's revenue.
Shift the responsibility of withholding the one percent (1%) tax burden to e-marketplaces and Digital Financial Service Providers (DFSP), facilitating a more efficient and streamlined process for tax administration.
For other questions, feel free to send an email to [email protected] so we can assist you!