The coronavirus disease 2019 (Covid-19) pandemic has spurred the growth of digital and online transactions, and this highlighted the taxation issues about them.
In May, we saw the filing of House Bill 6765, or the “Digital Economy Act of 2020.” Sponsored by Albay Rep. José María Clemente “Joey” Salceda, the bill seeks to amend certain provisions in our National Internal Revenue Code, or the “Tax Code.” Specifically, it seeks to subject to the 12-percent value-added tax digital advertising services, such as those on search engines and social media platforms; subscription-based services, including music and video streaming subscriptions; services rendered electronically; and transactions made on electronic commerce (e-commerce) platforms.
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