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What is the new BIR Revenue Regulation and when does it take effect?

Ren avatar
Written by Ren
Updated over a year ago

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.
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The Bureau of Internal Revenue pushed for the regulation primarily to:

  1. Enable the collection of taxes from all online sellers, thereby promoting tax compliance and contributing to the country's revenue.

  2. 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!

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