#digital framework

With the opening of the 19th Congress following the inauguration of President Ferdinand "Bongbong" Marcos, Jr., developments in technology and the future of the emerging digital economy are among the key issues the Philippines has to contend with moving forward, while still juggling the competing demands of the ongoing pandemic. Digital Taxation Act While the rate charged to digital service providers vary depending on who filed the corresponding bill (there are multiple bills filed in the current Congress with the aim to mandate digital taxation), the overarching theme would be levying taxes on services made available through electronic or online means. Clemente "Joey" Salceda, for instance, particularly targets "non-resident digital service providers." In a recent interview with GMA News, he clarified the following: "If your sales are below PHP 3 million, you are exempt from paying or filing VAT. One major international development would be the Statement on the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy from the Organisation for Economic Co-operation and Development (OECD), issued in October 2021. This solution, agreed upon by 136 nations, seeks fairer and more effective ways to address taxation challenges in the digital economy. Digital Payments Act With this, national and local government, as well as government-owned and -controlled corporations (GOCCs) are mandated to adopt safe and efficient digital means of receiving payments. Read more in our articles including "Tech Bills to watch out in the 19th Congress" and "Western Digital Around the World Contest".