Let us now dive into the untapped world of digital taxes!
In today’s world, technology has played a significant part with how we live our lives. With just a tap on our phones, we will be able to access a wide range of activities which shows how technology has opened a new marketplace that has an endless possibility of development and popularity in this generation.
The development of the digital world today has created a big leap of change with how our economy and society works, even with taxation. From the manual forms, filing processes, and the trend of digital marketing, tax systems are an important element of this picture.
Tax Updates!!
With the recent issuance by the BIR of the Revenue Memorandum Circular (RMC) 97-2021, the tax obligations of social media influencers were addressed on it. The BIR also intends to conduct a full blown investigation regarding this matter, as well as requiring them to submit a books of accounts in addition to registering and paying their taxes.
Recently, the Congress took a step forward by proposing the House Bill 6765 or the Digital Economy Taxation Act. The bill captures the value of the digital economy as it implies that network orchestrators and electronic commerce platforms be designated as withholding agents to promote income tax and value-added tax (VAT) compliance.
We need a globally consistent local digital taxation system to ensure our security for any uncertainties that may arise between our local tax laws and the tax laws of other nations. It is now time that our tax laws must be updated and developed thus, it must not only end here, as this is only the beginning of Philippines’ tax laws in tapping the digital marketplace.
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