Philippine Senate Approves New Tax Bill
Jayson 28 May 2024 09:24
Recently, the Philippine Senate passed a bill for the third and final time that aims to impose a 12% value-added tax (VAT) on digital services provided by companies that do not have a physical presence in the Philippines.
Under the measure, non-resident digital service providers and electronic marketplaces must register with the Philippine Bureau of Internal Revenue (BIR) to remit VAT on their services.
Once signed into law by the president, the measure could cover e-commerce companies such as Amazon that have no physical presence in the Philippines. If a digital service provider fails to withhold and remit the 12% VAT, the Commissioner of Revenue can order that its services be blocked or suspended.
The Treasury Department expects the bill to bring in ₱83.8 billion in revenue between 2024 and 2028.
Under the measure, non-resident digital service providers and electronic marketplaces must register with the Philippine Bureau of Internal Revenue (BIR) to remit VAT on their services.
Once signed into law by the president, the measure could cover e-commerce companies such as Amazon that have no physical presence in the Philippines. If a digital service provider fails to withhold and remit the 12% VAT, the Commissioner of Revenue can order that its services be blocked or suspended.
The Treasury Department expects the bill to bring in ₱83.8 billion in revenue between 2024 and 2028.
