Philippines Tax Agency Issues Circular Clarifying Withholding Tax Rules for E-Marketplaces, Digital Financial Services Providers

The Philippine Bureau of Internal Revenue Jan. 15 issued Revenue Memorandum Circular No. 8/2024, clarifying the provisions of Revenue Regulation No. 16/2023 on the imposition of withholding tax on gross remittances by electronic marketplace (e-marketplace) operators and digital financial services providers (DFSPs). The clarification includes: 1) the Jan. 11 effective date of withholding tax obligations for e-marketplace operators and DFSPs; 2) the 90-day compliance period for e-marketplace operators and DFSPs; 3) requirements for existing unregistered sellers and merchants to comply with the regulation within the specified period; 4) the creditable withholding tax exemption for gross remittances below 500,000 Philippine pesos ...