On 19 May 2020, the Philippine House of Representatives introduced House Bill No. 6765 to establish a fiscal regime for the digital economy.
The Bill would give effect to five key changes to the way the digital economy is currently taxed, to better capture value created into the tax system. In particular, the Bill requires that those who render digital services must do so through a resident agent or a representative office in the Philippines. The Bill also seeks to make “network orchestrators” and other similar services that link customers and providers withholding agents for income taxes, to ease their partners of the burden of having to pay their own taxes, while also encouraging tax compliance. The Bill responds to the increased urgency of finding new sources of revenue to find the country’s efforts to recover from the adverse impacts of COVID-19 and anticipates increasing digitization of the country’s economy. See House Bill No. 676 Comments are closed.
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