MANILA - The Department of Finance on Tuesday said it has asked the Bureau of Internal Revenue to study the digital tax practices in other countries as the number of online sellers and social media influencers continue to grow.
Finance Secretary Carlo Dominguez pointed out that the BIR should
consult with South Korea or Russia "to find out how to properly and effectively tax digital transactions."
“We have to catch up with these guys,” Dominguez said in an executive committee meeting.
BIR Commissioner Caesar Dulay said he has met with several units initially for a task force that would monitor sales of goods and services online or through the internet.
The tax collection body earlier said it would probe some 25 "top-earning" social media influencers to check their tax payment compliance.
The House of Representatives in September approved the proposed 12 percent Value Added Tax (VAT) on digital transactions in the Philippines.
Bangko Sentral ng Pilipinas Governor Benjamin Diokno, meanwhile, said he supports the measure but transactions below P500 should be exempt to ensure "fair and inclusive" VAT.
The BIR and the DOF in 2020 said they were looking at "viable ways" to impose taxes on digital services such as those offered by Facebook and Netflix.