Tax Alert No. 36 [Revenue Memorandum Circular (RMC) No. 79-2024 dated 11 July 2024]

Further Extending the Transitory Period Prior to Actual Imposition of Withholding Tax on Gross Remittances Made by Digital Financial Services Providers to Sellers/Merchants Prescribed under Revenue Regulations No. 16-2023.

Please be informed that RMC No. 79-2024 further extends the transitory period prior to actual imposition of withholding tax on gross remittances made by digital financial services providers to sellers/merchants prescribed under Revenue Regulations (RR) No. 16-2023.

In order to provide additional time to the digital financial services providers to finally complete their respective system adjustments for compliance with the requirements of RR No. 16-2023 and other government agencies, if any, the prescribed transitory period, which was earlier extended until July 14, 2024 is hereby further extended for another ninety (90) days or until October 12, 2024.

Accordingly, all electronic marketplace operators shall impose withholding of tax sellers/merchants beginning 15 July 2024.

You may access the full version of this Circular through the BIR website.

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