BIR Tax Crackdown: What Philippine Social Media Influencers Need to Know

The tax authorities are monitoring your content

If you are making money as a content creator or social media influencer in the Philippines, the Bureau of Internal Revenue (BIR) wants you to know they are paying attention. The tax authority has formed a special task force specifically to audit social media personalities and ensure they are properly paying taxes on their earnings.

Recent Developments

The BIR isn't just making threats; they are taking action. As of February 2025, the agency has:

Started reviewing tax compliance for 27 specifically identified influencers.

Prepared to issue Letters of Authority (LOAs) for formal tax audits.

Participated in the House Tri-Committee hearings focused on influencer tax compliance.

Continued a crackdown that began in 2021, targeting approximately 250 social media celebrities.

According to BIR Assistant Commissioner Jethro Sabariaga, the agency is now contemplating filing tax evasion cases against influencers who have disregarded notices to voluntarily comply with tax laws.

Who's Affected?

The BIR's definition of "social media influencers" is quite broad and includes anyone earning income from:

YouTube Partner Program.

Sponsored social media and blog posts.

Display advertising.

Brand ambassador roles.

Free products received in exchange for promotion (which must be declared at fair market value).

This indicates that the tax rules pertain to content creators on platforms like YouTube, Facebook, Instagram, and X (formerly Twitter), as well as to online sellers and freelancers receiving payments via digital channels.

The Numbers: What Influencers at the Top Are Earning

Industry estimates indicate that influencer earnings in the Philippines can be significant:

Influencers with 1 million+ followers: ₱100,000-₱150,000 per Instagram post

Influencers with fewer than 1 million followers: ₱50,000-₱80,000 per post

Content creators with under 100,000 followers: ₱25,000-₱40,000 per post

With earning potential this high, it's no wonder the BIR is paying attention. In fact, during the Tri-Committee hearings, it was asserted that one influencer earns as much as ₱5 million daily.

What You Need to Know About Compliance

Under Revenue Memorandum Circular (RMC) No. 97-2021, influencers are classified as self-employed individuals and are required to pay:

Income tax.

Business tax (either percentage tax or value-added tax).

Importantly, all income is taxable regardless of:

Which platform it originates from.

How payments are received.

Whether it comes from foreign sources, such as YouTube payments.

The memorandum directs BIR offices to conduct "full-blown tax investigations" against social media influencers in their jurisdictions to enhance tax compliance and increase tax revenues.

However, the BIR cannot target specific taxpayers because audits are conducted randomly or focus on those labelled as "high risk."

Penalties

Under the National Internal Revenue Code, social media content creators who evade taxes face severe penalties, including:

Fines between ₱500,000 and ₱10 million.

Imprisonment for 6 to 10 years.

Civil penalties equal to 50% of the tax due or deficiency tax.

Social media content creators should voluntarily declare their income and pay the associated taxes without awaiting formal investigations.

Why Compliance Is Becoming More Difficult to Avoid

The House Tri-Committee is currently investigating if further measures are necessary to enhance tax compliance, which includes:

Mandatory registration for online influencers regarding taxes.

Requirements for social media platforms to disclose influencer earnings.

Stricter penalties for noncompliance.

Historical Context

This isn't the BIR's first attempt to bring influencers into tax compliance. Their initial campaign in 2021 targeted around 250 influencers, and although some creators deactivated their accounts in response, the program resulted in 105 influencers and content creators registering as taxpayers by September of that year.

What Influencers Should Do Now

If you're earning money through social media or content creation, it's critical to:

Maintain thorough records of all earnings from every platform.

Declare all income sources, including non-cash compensation such as free products.

File and pay your taxes accurately and promptly.

The Bottom Line

The message from the BIR is clear: the days of flying under the tax radar as a content creator are over. With the potential for formal audits and even tax evasion cases on the horizon, Philippine influencers would be wise to organise their tax affairs sooner rather than later.

Whether you are a top earner making millions or you are just starting out with brand collaborations, understanding and fulfilling your tax obligations is now an essential part of being a professional content creator in the Philippines.

Practical Tips for all Content Creators

Create distinct bank accounts for personal and business transactions to enhance the tracking of your income and expenses.

Save screenshots of all platform analytics that display earnings, views, and engagement metrics as supporting documentation.

Consider using accounting software or apps specifically designed for freelancers to automatically categorize income and expenses.

Track all business-related expenses, including equipment (cameras, lighting, computers), software subscriptions, internet costs, and home office space.

Save receipts for content-related travel, as these may qualify as business expenses if the primary purpose was content creation.

Document meetings with brands and sponsors, as these can qualify as legitimate business meetings for tax purposes.

Remember, proper tax compliance isn't just about avoiding penalties; it's about professionalising your content creation business and positioning yourself for sustainable, long-term success.

Sources:

BIR to social media influencers: Pay taxes or face charges. Inquirer.Net, 27 November 2023. See here: https://newsinfo.inquirer.net/1866214/bir-to-social-media-influencers-pay-taxes-or-face-charges

House tri-com to review tax compliance of social media influencers. Philippines News Agency, 17 February 2025. See here: https://www.pna.gov.ph/index.php/articles/1244270