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Tax Concerning Online Business.

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1Tax Concerning Online Business. Empty Tax Concerning Online Business. Wed Oct 25, 2017 11:29 pm

JustAskingSomeQuestions


Arresto Menor

Hi everyone. I Would just like to ask. What kind of tax am I responsible to pay for my Online business? My business is completely online, it's dropshipping. So no product actually enters the Philippines. All payment are non-PHP currency.

What I heard is that since most of my "would be" clients are from abroad, I'm exempted from paying the 12% VAT.

And since I'm the only one in my online store. I would be paying myself a "salary" and the excess as furthering business fund. So, what kind of tax am I going to pay? Do I need to pay both Income Tax and the 3% Percentage Tax (are those different?)?

Please help me understand this more.

2Tax Concerning Online Business. Empty Re: Tax Concerning Online Business. Thu Nov 30, 2017 6:52 am

Lunkan


Reclusion Perpetua

Do the customers pay
to you
or to the handler, who pay you for your selling?

If it's the first, I'm not sure how BIR see it. There are information about how they look at online businesses but I haven't read it.
If it's the later BIR only count things at the amount you get.

You can check with your barangay/municipaly office if your business fullfil the demands to be counted as BMBE. I guess YES, but it depend of if you avoid to be seen as a part of a big organisation or not.

Owners of a BMBE you DON'T need to pay any INCOME tax for yourself. Beside that taxes and fees are as for others.

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