House Panel Approves 12% Tax On Online Services Like Netflix & Lazada

House Panel Approves 12% Tax On Online Services Like Netflix & Lazada

Mga higala! The House Committee on Ways and Means has approved a bill that will impose a 12% tax on online services and transactions like Netflix, Lazada, and more!

ICYDK, the demand for these services has surged amid the COVID-19 pandemic.

To be more specific, the said 12% tax will be implemented for the following:

  • a third party that acts as a conduit for goods or services offered by a supplier to a buyer and receives commission therefor (Ex. Lazada and Shopee);
  • a platform provider for a promotion that uses the internet to deliver marketing messages to attract buyers;
  • a host of online auctions conducted through the internet, where the seller sells the product or  service to the person who bids the highest price;
  • a supplier of digital services to a buyer in exchange for a regular subscription fee over the usage of the said product or service (Ex. Netflix, Spotify, and other streaming services); and
  • a supplier of electronic and online services that can be delivered through an information technology infrastructure, such as the internet.

For more details, read:

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