Paid celebrity endorsers will be taxed by the BIR

>> Wednesday, February 17, 2010

MANILA, Philippines - The Bureau of Internal Revenue (BIR) will go after celebrities endorsing or campaigning for candidates in the May 10 elections to make sure that they pay the proper taxes for such services.

“They get income for that so they should pay the tax,” BIR Deputy Commissioner for Legal and Inspection Group Gregorio Cabantac said.

He said campaigning or endorsing candidates is no different from other activities of celebrities, including product endorsements, hosting jobs and party appearances, which are all subject to income tax.

While admitting that some celebrities offer their services to candidates for free, Cabantac said this is not usually the case.

Asked how the BIR would be able to monitor such paid endorsements, Cabantac said the revenue agency would be fielding special teams during the election season. He also said that politicians should ask celebrities for receipts when paying them for endorsements.


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