LKI 2020-032 PRESS STATEMENT
From: Get Straight with Kuya Daniel
Razon UNTV, May 26, 2020
Topic: Everything you should know on the House Bill on Tax on Digital
Cong. Joey Salceda, the Bill author, says
1. This is not a new tax.
2. The bill designates e commerce platforms as withholding agent of VAT due on sales and trade of goods and services transacted on the internet.
3. Grab, Angkas, Shopee, Lazada, Netflix and Amazon, among others, had supported the Bill.
4. Facebook have not yet endorsed the Bill.
5. All digital platforms should be domiciled in the Philippines to be covered by the tax.
6. The Bill will raise revenue for COVID 19 recovery.
7. Other countries are imposing taxes on digital platforms.
8. The minimum transaction value of not more than P 10,000 is not taxable.
9. E Platforms earning P 3 million and below in a taxable year are not taxable.
1. VAT is 12%. Passed on to the value of goods and services. Study very well the impact of the tax to consumers and services.
2. May mga kailangang isaalang alang sa Bill na ito when imposing taxes with big online business. Where is the source or nexus of income for cross border transactions?
3. Business ang target ng digital taxation but the taxes should encourage people to tap digital services.
4. Sa ibang bansa, pinaguusappan and pagbubuwis sa mga malalaking online companies.
5. All taxes must be equitable and progressive. A straight VAT of 12 % impacts on cost of goods and services on digital commerce, and that certain consumers may not have the resources to use digital commerce as such.
1. Why don t we simply cut off or set a firewall on digital platform that wont pay the VAT?
6 We should consider start-ups to tap the digital platform.
7. There may be need to extend incentives, rather than impose tax.
8. We may have tax treaty that prevents Philippines withholding VAT on platforms that transact on cross border jurisdictions especially those with provisions against double taxation on cross border transactions.
9. At the Hearing of the Committee on Ways and Means , Laban Konsyumer will support the Bill as it will raise money for COVID 19 pandemic .
Most cross border digital economic platforms offer their services without charges for the regular menu. They earn revenues from advertisements and sales or subscriptions.
– A tax of 12% may change the norm, and Filipino consumers may end up paying for the use of all these social media platforms, platforms that have become part of the new norm.