BIR addresses privacy and security concerns raised by content creator over new badge policy
As the deadline for the Bureau of Internal Revenue's mandatory registration seal badge draws near, content creators and online sellers are sounding the alarm over potential privacy and data security risks.
In her open letter, finance planner and content creator Antonette Aquino called out the agency for a number of concerns, including privacy and doxing risks as the Taxpayer Identification Number and full legal name of the creators and sellers are accessible via the QR code, the lack of clear boundaries, and the daunting process of getting the badge
"While I support the government’s goal of eliminating illegitimacy in the e-commerce sector, the current setup severely compromises the safety and data privacy of micro-entrepreneurs, solo creators, and remote professionals," she wrote.
Aquino went on to urge the BIR to collaborate with the National Privacy Commission and digital community stakeholders in finding an alternate verification method, and to suspend penalties regarding the badge requirement ahead of the Oct. 31 deadline.
"A system that verifies compliance on a centralized platform, without forcing public, decentralized displays of identifiable data, would achieve accountability without sacrificing citizen safety," she wrote.
In an interview with PhilSTAR L!fe, Aquino explained that as both a taxpayer and a digital creator, paying taxes is part of being a legitimate professional and maintaining financial accountability.
"I registered with BIR in 2021 because I wanted my work as a creator to be treated as a real business that has proper records, official invoices for my clients, and of course, income that I can document," she explained.
"Paying your taxes is part of being a legitimate professional, and that's why I'm also speaking up because I want compliance safe and doable for people who want to do the right thing," she added.
Aquino stressed that the new compliance rule burdens micro-creators, part-time gig workers, and artists as the tax system remains designed for traditional businesses despite getting regular incomes from multiple platforms.
"Let's say there's progress because there's the Ease of Paying Taxes Act, but for a lot of small earners, the process of registering, updating, and being compliant still feels like it was designed for someone else. And we've seen that through the new badge rule," she told L!fe.
The process of keeping up with the BIR requirements is not as simple as registering. Aquino shared that one must be knowledgeable about the tax rules, as you need to keep books of accounts, issue official invoices, and file returns every quarter and every year to avoid penalties.
Adding to the arduous process is the agency's unreliable Online Registration and Update System website, which is at times down or generates invalid QR codes.
"It's hard to comply if the system itself doesn't work," she lamented.
Aquino underscored that other things that BIR should work on are ensuring a reliable system and simplifying registration, as well as providing easy-to-understand guides for the whole process.
She added that BIR should also make compliance costs proportionate to business size, and prioritize helping creators over penalties.
With only a week left before the BIR's deadline, Aquino said that even if the agency does not grant an extension, she will still comply and encourage others to do the same. However, she plans to bring the matter to higher authorities, including the Senate.
BIR's response
In response, BIR Commissioner Martin Mendoza said the badge is required to be posted only on accounts intended for business or professional purposes, and not purely on personal accounts.
He also acknowledged the privacy risk and shared that they are now in touch with the NPC to provide appropriate safeguards to the verification system. "Our objective is to preserve reliable verification without compromising taxpayer privacy or personal safety," he said.
Mendoza likewise clarified that "no penalties apply solely for failing to display during the extension period."
Senators Bam Aquino and Pia Cayetano have also commented on the matter, acknowledging that the privacy concerns about the badge are valid.
"Hiling natin sa BIR: ipagpaliban muna ang Registration Seal Badge requirement. Pakinggan muna natin ang hinaing ng mga online sellers at content creators," Aquino wrote.
Cayetano, who chairs the NPC budget in the Senate, said that she has brought the concern to the agency.
In her statement she said, "Given the October 31, 2026 implementation date, I trust that the concerned agencies can work together to immediately address and resolve the data protection concerns raised by our online sellers and influencers, balancing tax compliance with individual privacy," she added.
According to the BIR, the badge lets consumers know that a business is registered with the agency. It must be shown prominently on stores' websites, e-commerce or marketplace pages, social media pages, and other digital platforms.
If you're a digital creator or online seller who hasn't generated the code yet, check the full steps here on how to do so.