ALL YOUTUBERS HAVE TO PAY TAXES? NOT QUITE SO SIMPLE

Taxes are a fact of life in most nations of the world. Income taxes, VAT taxes, property taxes, etc. The Philippines has recently stated that all doing business online including YouTubers, bloggers, Ebay, Lazada, and other store owners must register with the BIR, and pay appropriate taxes.

25 comments

  1. Good information Rod. This topic has been hot with Youtubers of late. Perhaps they are looking at getting taxes from some of the bigger vloggers who are living in the Philippines. Many small channels are not making much if anything at all. Some people have the perception that all Vloggers are making a mountain of money lol.

  2. Rod,
    You forgot the legal disclaimer ” I’m not a tax professional and I’m not giving any tax advice.” I don’t live in the Phils at the moment and don’t have a YouTube channel presently so, I guess I’m good.
    Daniel

  3. Thanks Rod. This is becoming a real cluster in YouTube. So far your information matches one other person’s on registration. Still some are saying it’s nothing and a hoax. Better safe than sorry. Good Work πŸ™πŸΊ

  4. While it is true that a U.S. expat vlogger living in the Philippines would not be subject to double taxation, I think you may have given viewers the impression that they are not subject to Philippine taxes as long as they paid U.S. taxes on that money. That is not the way it works. The Philippines does not care what taxes you pay to the U.S. government. Regardless of tax treaties, anyone earning income in the Philippines (including vloggers) will have to register, file a tax return, and first pay any tax they may owe taxes to the BIR based on that income they earned vlogging in the Philippines (P250,000 and up after deductions). In addition, Americans must report their WORLDWIDE income (from ALL sources both foreign and domestic) to the IRS. However, there is a Foreign Earned Income Exclusion if certain conditions are met, so the U.S. taxpayer then receives a Foreign Tax Credit or deduction for foreign taxes paid. Basically, you will give the IRS proof that you already paid taxes to the BIR on that portion of your income you earned in the Philippines. You then claim a credit for that amount on your U.S. tax return so that you are not taxed by both countries on that same income.

  5. If you live/stay more than 179days in philippines then you are tax obligated on your income to the philippines. Most countries use this rule and dosnt matter if your registred adress is in your “homecountry”. You need to pay taxes unless you have a registered adress in some of the tax havens countries that dosnt have ncome tax. If you dont pay taxes on ur income then that money is black. The “world tax system” is made so you need to pay taxes to either your home country or where you “living”. This so you cant avoid countries taxes. If you want to avoid taxes then get a registred adress in a tax haven or low tax country and make sure you donr stay more than 179days in a high tax country.

  6. The tax agreements are for people with residence visa – by spouse or retirement, work visa. Tourist visa are excluded. My tax agreement is simple, income made in the homeland are taxed there, Income in the PH is taxed here. US with worldwide income tax is more complicated. I see many younger youtubers coming to the PH vlogging, I think many of them have not apply for a working visa. That would mean in most cases, (if they been here more then 180 days) they owe tax to two countries.

  7. Good video as always, and sadly something one needs to understand.

    I must say though that if there is any topic that could turn a sunny, joyous fun-filled day or place into a stormy, cloudy, grey, rainy yucky day or place – that is the topic.

    With the caveat that I’m not an accountant, lawyer or any sort of tax expert, whilst American citizens never escape the IRS, having to file based on their citizenship and not residence status, only they (and Eritreans) are in that boat, and every other country will leave their citizens alone if they stay away – meaning a Brit or Canadian living in Philippines won’t have to pay or file with their own government of citizenship. For any country, if you stay more than 180 / 183 days (there’s a slight 4-day range there by country) – you are their slave for tax purposes. Even if you are an illegal immigrant who snuck across the boarder – you have to file (and pay if there’s enough) after 183 days – everywhere that has income taxes.

    And not seeking more grey/stormy weather, but there is usually a difference between personal and business taxation, which might be a topic worth getting into – first separately, and then combining the two (i.e. what if you are there just on a pension from back wherever you came from? and what happens if you have a pension and also are making some money too?) Unfortunately there’s 1000’s of permutations and combinations on this topic – making money back home but not there, making money from a third country, plus what country you are from originally, etc etc and I really enjoy looking at real estate and such rather than tax forms, so I’m not suggesting a series. But there’s enough ‘rainy day’ questions here to take on 100’s of typhoons / virulent plagues and still have leftover.

    One last question – really: my understanding is that the Philippines only taxes foreigners living (more than 183 days) in the Philippines on their Philippine sourced income (whilst taxing Philippine citizens living in Philippines on their world-wide income). I am sure that was true 10+ years ago. Is it still true today? [I do know that they tax everyone, even if they’ve never in their life set foot in the Philippines, on their Philippine sourced income, which is fair in my mind since that is its source].

    Have a great weekend.

  8. Rod I’m glad I’m not involved in this mess LOL. But I’m quite sure it’s going to take some of these bloggers by surprise. As some of them are making pretty good money at this youtubing

  9. Sellers at the keyword… This was written about the Filipino newspaper.. It was about people selling goods… Such as lozada…. Or anyone else selling over 250,000 pesos per year. on line .. This was for value added tax… VAT.. Nothing at all about income tax..

  10. Thanks for sharing our obligations, like here in the US, I learned how to take care of it, coming from the Phil., I took advantage of all opportunities and made*00d money by papers but not in cash, helped to take of 3 grown up boys to finished college. I get unhappy every time IRS time, because we paid in by thousands, until we retired, 2 yrs ago 30K went out from cashing in life ins. and401K. We needed it after bldg ou maintain an example free home! Got bored and not ready to sit and rock the chair so am back to work as part time in a good invironment! Tax tax and tax for more😩

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