Lawmakers urge BIR to extend July 31 deadline for e-merchants to register business

House ways and means committee chair Joey Salceda on Friday sought to clarify issues surrounding the recent issuance of the Bureau of Internal Revenue (BIR) of Revenue Memorandum Circular (RMC) 60-2020, which reminded online sellers to get registered and pay taxes.

The Albay lawmaker noted the positive response to the country’s shift to digital economy especially during the pandemic and emphasized the need to streamline tax administration procedures.

“I’m glad some key issues, such as the applicability of tax exemptions and benefits for small entrepreneurs, were clarified. Personally, I’m after those who make big money, not the subsistence-entrepreneurs and small enterprises,” Salceda said.

“In fact, I want to protect small enterprises. And I want them eligible for stimulus benefits. So, if they can be regular, registered businesses with very little regulatory costs, I am all for it. We need small enterprises to have access to our stimulus programs. They will translate the stimulus into growth.” Salceda added.

The BIR’s RMC 60-2020 was issued last June 1, and served as a “reminder” to all persons doing business and earning income through digital means to ensure that their businesses are registered and that they are tax compliant.

In their presentation, BIR Commissioner Caesar Dulay and Deputy Commissioner Arnel Guballa explained that the memorandum circular aimed to encourage business registration and merely reiterated BIR RMC 55-2013 on the obligations of taxpayers’ in relation to online business transactions.

BIR RMC 57-2020 was likewise presented which, in the Bureau’s effort to streamline the business registration process, removed the Mayor’s Permit as one of the documentary requirements.

Trade Secretary Ramon Lopez underscored that business registration is key to consumer protection. He said that with greater traceability of online sellers, trust factor is increased, a favorable development for the growing e-commerce industry.

He also echoed the BIR’s pronouncement that those who earn P250,000 or less in a year are still exempt from paying income tax.

The lawmakers had similar concerns regarding the July 31 registration deadline set under RMC 60-2020 which they deem too soon considering that areas in the country are still in varying levels of community quarantine and that registrants may have difficulty in complying with the requirements.

While BIR officials explained that the requirement has been in place since 2013, the committee members appealed to the BIR to extend and set a more evidence-based deadline.

Guballa allayed fears that the penalties that may be imposed under RMC 60-2020 will be construed as a disincentive after it was raised by Marikina Rep. Stella Luz Quimbo.

He said that the BIR may view registrations in a case-to-case basis and that the Commissioner of Internal Revenue has the power to abate a tax liability under certain circumstances.

Guballa assured that businesses should not be discouraged from registering for fear of being penalized.

Source: Latest Politics News Today (Politics.com.ph)