This guide is for Philippine-resident individuals earning from YouTube, TikTok, Facebook, Instagram, Twitch or brand deals, with yearly gross receipts up to ₱3,000,000. It is not for creators who earn through a corporation or partnership (corporate income tax applies), creators already above ₱3,000,000 (VAT rules apply), or foreign nationals creating from abroad (see our non-resident alien guide). If you have received a BIR letter of authority or audit notice, stop here and get a tax practitioner.
What counts as creator income
Every peso or product you receive for content counts, because RMC 97-2021 treats individual influencers as "self-employed individuals or persons engaged in trade or business as sole proprietors", so the income is business income. It lists the sources: YouTube Partner Program, sponsored posts, display ads, brand ambassador fees, affiliate marketing, co-created product lines, your own products, photo and video sales, digital courses and subscriptions, and podcasts and webinars.
Two rules catch most creators:
- Free products are income. If you receive free products in exchange for promoting them, you "must declare the fair market value of such products as income" (RMC 97-2021).
- Foreign payouts count. Payments under the YouTube Partner Program "shall likewise be included in the computation of the gross income" (RMC 97-2021). A resident citizen is taxed on income from sources "within and without the Philippines" (NIRC Sec. 23, quoted in the same circular).
There is no minimum income before you must register. The ₱250,000 figure people quote is the zero-tax band of the income tax table. It does not exempt you from registering or, under graduated rates, from the 3% percentage tax.
8% option or graduated rates: a worked example
For most small creators the 8% option is cheaper. If your gross receipts do not exceed ₱3,000,000 and you are not VAT-registered, you choose one regime for the year:
- 8% option: 8% of gross receipts over ₱250,000, "in lieu of the graduated income tax rates ... and the percentage tax under Section 116" (RA 10963, NIRC Sec. 24(A)(2)(b)). No expenses are deducted.
- Graduated rates plus 3% percentage tax: income tax from the TRAIN table effective January 1, 2023 on net income, plus 3% of gross quarterly sales under NIRC Sec. 116 as amended by RA 11976. Net income is gross minus itemized expenses, or minus the 40% Optional Standard Deduction (NIRC Sec. 34(L)).
Inputs (illustrative creator, 2026): ₱480,000 AdSense, ₱150,000 cash brand deals, and PR products with a fair market value of ₱70,000. Gross receipts: ₱700,000. Documented expenses: ₱40,000.
| Regime | Working | Tax for the year |
|---|---|---|
| 8% option | (₱700,000 minus ₱250,000) x 8% | ₱36,000 |
| Graduated, 40% OSD | Net ₱420,000: ₱22,500 + 20% of ₱20,000 = ₱26,500; plus 3% of ₱700,000 = ₱21,000 | ₱47,500 |
| Graduated, itemized | Net ₱660,000: ₱22,500 + 20% of ₱260,000 = ₱74,500; plus ₱21,000 | ₱95,500 |
The 8% option wins here by ₱11,500. Leaving out the ₱70,000 of PR products would understate gross receipts by 10%.
When graduated wins: at ₱700,000 gross, graduated with itemized expenses only beats 8% once documented expenses pass ₱350,000 (50% of gross). At ₱1,200,000 gross the break-even is ₱712,500 (59%). We computed these from the same TRAIN table and 3% rate. Most creators with a phone, a laptop and editing software do not reach that level, so 8% is usually cheaper. Run your own figures on the income tax calculator and the percentage tax calculator.
Timing: in your first year you elect 8% on Form 1901 when you register or on your first quarter return; in later years, on the first quarter return or with Form 1905 at the start of the year (BIR Taxpayer's Guide for Online Sellers). The RR 8-2018 digest says the election "shall be irrevocable and no amendment of option shall be made for the said taxable year". If you do not elect, you are on graduated rates.
If you also have a job: you are a mixed income earner. You can still use 8% on the creator income, but the ₱250,000 reduction "is not applicable to mixed income earners" (RR 8-2018 digest), so the 8% applies to all creator receipts.
Deductible expenses (graduated rates only)
Expenses reduce your tax only under graduated rates. RMC 97-2021 lists common YouTuber deductions: filming equipment, computer equipment, software subscriptions, internet, proportionate home office rent and utilities, office supplies, travel for the channel, paid editors, advertising, giveaway prizes, depreciation, and bank and shipping charges. Each must be "substantiated with sufficient evidence, such as BIR-registered receipts and invoices". The 40% OSD needs no receipts, but you must elect it in the return.
Foreign platform income and US withholding
Claim the Philippines-US treaty rate with Google so less US tax is withheld. Google treats YouTube Partner Program payments as royalties and, under US rules, withholds US tax on royalty earnings from US viewers. RMC 97-2021 advises Philippine creators to submit their tax information to Google "to be eligible to claim treaty benefits under the tax treaty between the Philippines and the US". If the payer asks for proof of residency, get a Tax Residency Certificate from the BIR International Tax Affairs Division. If you skip the treaty claim and pay the full US rate, your Philippine foreign tax credit is capped at what the treaty rate would have cost.
Register with the right code and post the Seal Badge
Register as an Online Content Creator and show the BIR badge on your channel. RMC 38-2026, issued April 29, 2026, lists PSOC 5990, Online Content Creator as the code for individual creators, and requires creators to post a BIR Registration Seal Badge on their page or profile instead of the full Certificate of Registration. The badge is free through ORUS; updating your registration online costs the ₱30 documentary stamp tax. The old ₱500 annual registration fee was removed by the Ease of Paying Taxes Act (BIR EOPT flyer).
What you file
A registered creator files four quarterly or annual returns a year, whatever the income level.
| Obligation | When | Rule |
|---|---|---|
| Quarterly income tax return, Form 1701Q | May 15, August 15, November 15 | NIRC Sec. 74 as amended by RA 10963; BIR Taxpayer's Guide for Online Sellers |
| Percentage tax return, Form 2551Q (graduated only) | April 25, July 25, October 25, January 25 | NIRC Sec. 128 as amended by RA 11976 |
| Annual return, Form 1701A (8% or OSD) or Form 1701 (itemized or mixed income) | April 15 of the following year | NIRC Sec. 51(C)(1), RA 8424 |
Next steps
- Estimate your tax under both regimes on the income tax calculator.
- Register or update your registration with PSOC 5990: follow the freelancer BIR registration walkthrough.
- Elect your regime on the first quarter return and add the dates from quarterly tax deadlines to your calendar.
- If you sell physical products too, read the online sellers guide.
How to tell it worked: your Certificate of Registration (or eCOR) lists PSOC 5990 and carries a QR code that resolves to the BIR's verification domain, verify.bir.gov.ph (RMC 38-2026), and your first quarter return shows the regime you chose. If the COR shows a different code or no QR code, update your registration in ORUS before you file.