DOF And BIR Plans To Tax Online Sales And Streaming Services
Digital streaming and online shopping platforms such as Netflix and Lazada may soon come with local taxes as the Department of Finance (DOF) and Bureau of Internal Revenue (BIR) is now looking at how to impose taxes on digital activities such as online sales and streaming services
Finance Secretary Carlos Dominguez III said in a Senate hearing that the DOF and the BIR are now looking at proposals to impose taxes on services offered by such companies.
Domingues told lawmakers on Wednesday that they have started the study on improving our tax collections on video streaming and on commerce.
He further explains that what they are trying to figure out now is how they can implement a tax collection program. Thus their 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.
At the moment, the studies are ongoing, and there is still no clear picture of the possible collections from online activities according to Dominguez.