Digital Marketing like Lazada, NetFlix, Streamers will be taxed by the government - GazeFeed

Digital Marketing like Lazada, NetFlix, Streamers will be taxed by the government - GazeFeed

The Department of Finance (DOF), through the Bureau of Interneal Revenue (BIR), is studying how digital activities such as online sales and streaming services like Lazada and Netflix are taxed.

At the Senate Committee of the Whole's hearing, Finance Secretary Carlos Dominguez III said that the DOF and the BIR are already considering the levy on services offered by companies like Lazada and Netflix.

"We have started the study on improving our tax collections on video streaming, on commerce conducted through the internet," Dominguez said in a statement by Senator Ramon "Bong" Revilla Jr.

“What we are trying to figure out is how we can implement a tax collection program, so now our team from the BIR and the DOF is working very hard to determine the way to tax transactions that are supposed to be taxed but are escaping taxation because they are on the internet, ”he added.

"We are currently studying it and we will report to the Senate as soon as we have a variable way of taxing these items," the secretary said.

Revilla had previously filed a proposal to tax digital services.

In Senate Resolution No. 410, Revilla asked the Senate ways and means committee to hold a hearing on whether taxes can be collected from multinational online streaming services and the digital economy as a whole.

Revilla said the proceeds will be used to supplement the national economic recovery plan, particularly in the rehabilitation of affected industries and in the construction of innovative schools complete with digital technologies and laboratories.

“As we continue to implement quarantine measures such as social distancing and mass gathering, and as we enter the so-called 'New Normal,' we will surely have more people using technology-based services like online streaming and online markets, ”Revilla said.

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via | GazeFeed

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