back to article Philippines approves digital services tax on streaming services, apps, even SaaS

The Philippines has become the latest nation to impose a digital services tax. Such taxes require the likes of Netflix and Spotify to pay local sales taxes even though their services are delivered – legally, notionally, and physically – from beyond local jurisdiction. The Philippines has chosen a rate of 12 per cent, …

  1. IGotOut Silver badge

    Good for them...

    "But the taxes are controversial because they are seen as a unilateral response to the wider issue of multinational companies picking the jurisdictions in which they'll pay tax"

    Because the USA that benefits the most from the tax avoidance companies have politicians in the pockets of those companies.

    They have no incentive to fix the problem they helped create.

    They can impose tarrifs on this countries, but if enough do it, they eventually have to cave into the economic bully boys.

    1. John Brown (no body) Silver badge

      Re: Good for them...

      And apart from anything else, it's only doing at a national level what the US already does in it's complaints about Sales Tax in cross-State transactions through the likes of Amazon. Sale Tax is paid at the point oif sale to the local jurisdiction. Simples :-)

      It's also setting in place the systems required not just to tax the big US tech companies, but also those big tech companies we in the west don't think of quite so often, but are beginning to make inroads to the west from the far east, eg TenCent, AliBabba etc.

  2. This post has been deleted by its author

  3. Pangasinan Philippines

    Is a VPN the answer?

    If I use Netflix here in Manila ** does that mean I can bypass the tax by using VPN from (for example) Europe?

    I don't yet, but the local Telco is pulling all Fox and Disney channels off the satellite from next month.

    Considering Roku for my 200 Mbps fiber (fibre)

    1. Nifty Silver badge

      Re: Is a VPN the answer?

      Not much point in VPN'ing to the UK anyway, we pay 20% tax on Netflix here (or I would if I subscribed):

      https://www.cnbc.com/2018/12/03/netflix-revenues-under-investigation-by-uk-tax-authority.html

      "...20 percent of the price of every Netflix U.K. subscription."

      The EU VAT rates are similar.

      1. bombastic bob Silver badge
        Alert

        Re: Is a VPN the answer?

        it is worth pointing out that It's not the NETFLIX providers that are being taxed.

        It is the CONSUMER of those services that is being taxed.

        (As you appear to have pointed out, even if unintentionally)

        So "Taxing NETFLIX" is not really at issue here, unless the taxes are being unfairly levied against NETFLIX as compared to other (kinds of) media providers.

        [not like I want to see things taxed but this is what gummints do, and why the people need to VOTE]

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

Biting the hand that feeds IT © 1998–2021