Marissa Cabreros, Deputy Commissioner of the Bureau of Internal Revenue (BIR) Legal Group said that to effectively tax the digital economy, an appropriate and legal framework must be in place.
This was emphasized on the webinar, “Taxation of Digital Economy and Costs and Benefits of Customs Duties Moratorium on Electronic Transmissions”, which featured two (2) PIDS studies, namely, “Emerging Tax Issues in the Digital Economy” and “Costs and Benefits of New Disciplines on Electronic Commerce”.
The Deputy Commissioner also explained that authorities must create policies that are suited to the Philippines, implying that these measures should not be just copies from the policies of other countries.
“The digital economy and the digitalization of the economy gave birth to new type of business entities and new business models that challenge the application of the current provisions of the Tax code, which has been anchored and designed under a ‘brick-and-mortar’ or traditional way of doing business and reporting”, the Deputy Commissioner said.
Cabreros said the traditional way of doing business and reporting is not applicable in the digital economy doing transactions. She mentioned agencies like the BIR, Bureau of Customs, Department of Trade and Industry, National Telecommunications Commission, and Department of Information and Communications Technology as the departments that would take a significant role in crafting the policies.
Source: Newsbytes
This article is published on BitPinas: BIR Requests New Policies to Tax the ‘Digital’ Economy
Source: https://bitpinas.com/regulation/bir-new-digital-tax-policy/
