A PARTY-LIST legislator proposed taxing foreign companies providing digital services, noting the potential to raise up to P10 billion which could go to the government’s pandemic containment efforts.
In a statement, AAMBIS-OWA Party-list Representative Sharon S. Garin said major non-resident foreign corporations who profit from the Filipino market but are not registered with the Bureau of Internal Revenue must also be taxed.
The House of Representatives resumed discussions on House Bill No. 7425 in September the bill proposes the collection of value-added tax (VAT) from digital transactions.
She added that taxation levels the playing field between non-resident foreign entities and Philippines-registered businesses.
“The intention of the bill is to reduce the burden of taxpayers by simplifying payment without compromising accountability,” she said in the statement Thursday.
The bill calls for non-resident digital service providers to collect VAT on services. The threshold for VAT registration for non-resident digital service providers is gross sales of over P3 million.
Ms. Garin said only transnational services and transactions will be covered by the measure. — Gillian M. Cortez