Dear Partner,

Good day!

As previously communicated, the Bureau of Internal Revenue (BIR) has enacted BIR Revenue
Regulation 16-2023, stating that online merchants earning PHP500,000 or more annually will be
subject to a 1% withholding tax.

This withholding tax will be imposed on half of the total payments made to sellers or merchants for goods
or services sold online, covering transactions on platforms like foodpanda.

Starting April 2024, digital platforms are mandated to implement the withholding tax on gross
remittances. During this transition phase, partner vendors are required to furnish a Sworn
Declaration (SD) to the BIR, specifying whether they qualify for exemption or not.

Note that partner vendors are likewise required to submit these Sworn Declarations (SD), duly received
by the BIR, to the digital platforms. To help us properly collect your SD, you can submit the form here.

To reiterate, the Regulations likewise provide that failure to provide the digital platform with the
SD, duly received by the BIR, shall entitle the digital platform to withhold the necessary tax.

For further details on additional requirements and guidelines, please consult our previous
correspondence with the subject "COMPLIANCE WITH THE BUREAU OF INTERNAL REVENUE
(“BIR”) REVENUE REGULATIONS (“RR”) NO. 16-2023 - 1%WITHHOLDING TAX ON ONLINE
MERCHANTS".

Should you have any further inquiries or concerns, feel free to contact us via email or through the Help
Center accessible via your Go Droid App.

We appreciate your continued support and cooperation.

Cheers,
foodpanda Philippines Team