This Host Payout Policy (“Policy”) governs the calculation, timing, withholding, release, and adjustment of payouts to Hosts using the Sofaree platform. This Policy forms an integral part of and is incorporated by reference into the Sofaree Host Terms and Conditions.
1. Platform Role in Payments
Sofaree operates as an online marketplace and payment facilitation platform. Sofaree is not a trustee, escrow agent, custodian, or fiduciary of Host funds, except where expressly required by applicable Philippine law.
Payments made by Guests are processed through Sofaree solely to facilitate bookings and are subject to verification, booking completion, dispute resolution, and compliance with Platform Policies.
2. Definition of Payout Amounts
For clarity and transparency, the following definitions apply:
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Gross Booking Amount – The total amount paid by the Guest for a confirmed booking, inclusive of accommodation charges and mandatory fees.
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Sofaree Service Fee – The platform service fee disclosed to the Host during onboarding and reflected in the Host dashboard.
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Mandatory Taxes – Taxes required by Philippine law, including withholding taxes imposed under BIR regulations.
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Net Host Payout – The final amount payable to the Host after deductions.
Payout Formula
Net Host Payout = Gross Booking Amount
– Sofaree Service Fee
– Mandatory Taxes
– Applicable Bank / Transfer Fees (if any)
No fees shall be deducted unless disclosed under this Policy or applicable Platform Policies.
3. Mandatory Philippine Withholding Tax (BIR RMC No. 8-2024)
Pursuant to Bureau of Internal Revenue (BIR) Revenue Memorandum Circular No. 8-2024, Sofaree shall comply with all mandatory tax withholding obligations applicable to electronic marketplace operators.
3.1 Withholding Obligation
Unless the Host provides a valid and current BIR Certificate of Exemption, Sofaree shall:
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withhold one percent (1%) withholding tax,
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computed on one-half (½) of the gross remittances payable to the Host,
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and remit the same to the BIR in accordance with law.
3.2 Host Tax Responsibility
Hosts are solely responsible for:
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their own income tax filings,
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VAT or percentage tax obligations, and
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maintaining valid BIR registration (Form 2303).
Mandatory tax withholding shall not constitute a breach of contract or improper withholding of funds.
4. Dispute Window and Holding Period
4.1 Dispute Window
To protect Guests and comply with Philippine consumer protection laws, Sofaree observes a Dispute Window.
Host payouts are not released immediately upon check-in. Funds remain temporarily on hold for a minimum period to allow Guests to report material issues.
4.2 Guest Complaints
If a Guest files a valid complaint within twenty-four (24) hours from check-in regarding:
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misrepresentation,
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safety concerns,
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or material deviation from the listing,
Sofaree may freeze the payout pending investigation and resolution in accordance with Platform Policies.
5. Payout Timing
Subject to the Dispute Window and compliance checks, payouts are typically initiated within [X] business days after booking completion.
Actual receipt of funds may vary depending on:
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bank or e-wallet processing times,
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weekends or holidays,
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verification requirements.
6. Chargebacks and Right of Offset
6.1 Chargeback Risk
If a Guest initiates a credit card chargeback or payment reversal after a payout has been released, Sofaree may be required by payment processors to refund the Guest.
6.2 Right of Offset
To the fullest extent permitted by law, Sofaree reserves the right of offset, allowing it to:
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deduct the amount of a successful chargeback,
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related penalties or processing fees,
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from the Host’s future payouts.
If insufficient future payouts exist, the Host agrees to reimburse Sofaree for the outstanding amount.
7. Bank Details, AML Compliance, and Third-Party Accounts
7.1 Account Ownership Requirement
To comply with Anti-Money Laundering (AML) regulations and fraud prevention standards:
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payout accounts must be owned by and registered under the Host’s legal name;
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Sofaree does not allow payouts to third-party accounts.
7.2 Verification
Sofaree may suspend or delay payouts where:
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bank or e-wallet details are invalid,
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account names do not match Host records,
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verification documents are incomplete.
8. Dormant and Unclaimed Payouts
8.1 Failed Payout Attempts
If payout attempts repeatedly fail due to:
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invalid bank details,
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Host inaction,
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or failure to update payout information,
funds may remain temporarily unpaid.
8.2 Dormancy Policy
If payouts remain unclaimed for a continuous period of two (2) years due to Host negligence or inaction, Sofaree may:
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deduct reasonable administrative or maintenance fees as permitted by law; and/or
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comply with applicable escheatment or abandoned property laws, including remittance to the Bureau of the Treasury, if legally required.
Hosts waive any claim against Sofaree arising from such legally mandated actions.
9. No Guaranteed Payout
Sofaree does not guarantee Host payouts in all circumstances. All payouts are conditional upon:
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booking completion,
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dispute resolution outcomes,
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compliance with Platform Policies,
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and applicable laws and regulations.
10. Good-Faith Administration
Sofaree commits to administering payouts in good faith, transparently, and in accordance with Philippine law. All payout decisions are communicated through official platform channels.
