Article Critique

1.The Title of the article is the “New Normal” of Increased Online Business Transactions, and
Revisiting Revenue Memorandum Circular No. 55-2013. A well-made, clear, and appropriate
title that can attract or get the reader’s attention.
Workers and Entrepreneurs have faces different kind of problems in their business but
have gained knew knowledges of how to handle their finances and still work on their business in
different kind of ways. The purpose of the article is to give a general information about what is
the “New Normal” in our life. The COVID-19 pandemic has taken a significant toll on
economies and people of all nations and of all ages, from all walks of life, across the globe.
Social media and virtual meetings, domestically and across the globe, have become the “new
normal” as people strive to keep normalcy in their lives amid pandemic restrictions. Here in the
Philippines, Digital 2020 April Stat shot report by Hootsuite and We Are Social revealed that
64% of Filipino internet users are spending more time on social media, with 23% indicating an
increased activity in their online shopping activity. While this article provides a significant result
showing that the New Normal have given consumers resorting more to online shopping amid
pandemic restrictions, entrepreneurs have embraced the digital phenomenon for online shopping
even more but there are still workers and entrepreneurs that are unable to keep up with business
changes due to covid-19 pandemic.
With this surge in online sales and business activity, the government looks to remind
online sellers of their tax obligations, with the Bureau of Internal Revenue’s (BIR) issuance of
Revenue Memorandum Circular (RMC) No. 60-2020 entitled “Obligations of Persons
Conducting Business Transactions Through any Forms of Electronic Media and Notice to
Unregistered Businesses.” The Circular basically mandates all business owners who are engaged
in an online business platform in any form, whether digital or electronic, to register their
businesses with the BIR and pay taxes on their sales. Under this RMC, online business entities
and constituents are encouraged to register their businesses no later than July 31, 2020 to avoid
penalties for late registration. In addition, they are encouraged to voluntarily declare their past
transactions, and pay the taxes due thereon, without corresponding penalties if the declaration is
done no later than July 31, 2020. The above Circular is explicit that it covers not only partner
sellers, but also other stakeholders, such as the payment gateways, delivery channels, internet
service providers, and other facilitators. Do note that if online sellers are already registered with
the BIR, but were not previously doing business online, these online sellers should revise their
certificates of registration (with the BIR), to include “online selling”. The Department of Finance
(DOF) and the BIR were quick to explain that this RMC is a reminder to register, and pay the
appropriate taxes due, referring to RMC No. 55-2013, dated 05 August 2013. Given this
reference, it would be best to review RMC No. 55-2013.
The article discussed an important information about the changes in business life, as the
government continue to remind entrepreneurs to register and pay their tax obligations. The
approach of the article about “New Normal” could be useful to new sellers as it would allow
them know that there are 64% of Filipino internet users are spending more time on social media,
with 23% indicating an increased activity in their online shopping activity allowing them to
freely and continuously sell items without paying any taxes. However, e-commerce business
owners that possess websites and sell their goods and services online has to pay their taxes.