digital financial services safeguards

The Bangko Sentral ng Pilipinas (BSP) announced in a press release that it is “finalizing new rules” for banks, e-wallets, and other financial service provides to adopt ‘stronger safeguards’ against online gambling. According to the BSP, these measures aim to minimize the risks of addiction, fraud, and financial harm while encouraging the responsible use of digital financial services. The Department of Finance (DOF) has collected nearly PHP 7 billion from the new 12 percent value-added tax (VAT) imposed on digital services. signed into law the Digital Services Act (likewise known as Republic Act No. 12023 or the Value-Added Tax on Digital Services Law) which aims to expand the existing 12% VAT to digital service providers. The coverage includes all digital services consumed in the Philippines by digital service providers regardless of whether the service provider is local or foreign. The 12% VAT on digital services will finally be implemented starting June 1, 2025. The government also allocates 5% of the VAT collected from digital services over five years to support the local creative industry, and hopefully help Filipino digital creators. Read more in our articles including "BSP to implement stricter measures vs. online gambling: including face recognition" and "BIR collects over PHP 7 billion from digital services VAT".