REVENUE MEMORANDUM CIRCULAR NO. 8 – 2024
Clarifies the provisions of RR No. 16-2023 imposing Withholding Tax on gross remittances made by electronic marketplace (e-marketplace) operators and digital financial services providers (DFSPs) to sellers/merchants.
The Withholding Tax obligation of e-marketplace operator and DFSPs shall take effect after fifteen (15) days following the publication of RR No. 16-2023 in a newspaper of general circular or the Official Gazette, whichever comes first. RR No. 16-2023 was first published in Manila Bulletin on December 27, 2023. Thus, RR No. 16-2023 shall take effect on January 11, 2024.
The e-marketplace operators and DFSPs are allowed a period of ninety (90) days from the date of issuance of the Circular to comply with the relative policies or requirements of other government agencies, if any, and to give them an opportunity to adjust and properly comply with the provisions of RR No. 16-2023 prior to the actual imposition of the prescribed Creditable Withholding Tax. Further, existing unregistered sellers/merchants shall comply with the applicable requirements enumerated in Q&A No. 4 of the Circular within the same prescribed period.
In case the e-marketplace platform accepts or collects payment for the goods and remits the same to the seller, this shall be subject to withholding tax pursuant to RR No. 16-2023 where withholding tax shall be deducted before its remittance of the income payment to the seller.
In the event that the payment is transmitted to the seller/merchant through different facilities, the last facility which has control of the payment before completely remitting the same to the seller/merchant shall be liable to withhold the taxes under RR No. 16-2023.
The violation of any of the provisions of RR No. 16-2023 shall be subject to appropriate penalties under the Tax Code, relevant laws, rules and regulations.