CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Philippines Looks To Tax Online Traders

Philippines Looks To Tax Online Traders

by Mary Swire, Tax-News.com, Hong Kong

22 January 2013


Within its efforts to meet an increased budget in 2013, in particular from improved tax compliance, the Philippines Bureau of Internal Revenue (BIR) has indicated that it will put part of its focus on online traders and the websites that they use.

The BIR has a budget for individual income tax revenue of PHP258.14bn (USD6.34bn) in 2013, a 16.4% increase over its target last year of PHP221.77bn. While the bulk of the BIR's income taxes are paid automatically by employers from their salaried employers, most of the increase in income tax revenue is, again, expected to be obtained from increased tax compliance.

In that scenario, as it looks to widen further the Philippine tax base, the BIR is focusing not only on the regular online traders using so-called "buy and sell" websites without registering with the BIR to pay their taxes, but also on the website operators themselves, said to include eBay, Sulit and AyosDito, that allow them to do so without checking their tax credentials.

BIR Commissioner Kim Henares has confirmed recently that cases can be filed against both the sellers of the goods and also the websites that allow individuals to trade online, as the latter act in much the same way as mall operators that lease commercial space to entrepreneurs and, under the country's tax code, have to ensure that their tenants are issuing receipts and are registered with the tax authority.

She also confirmed that the BIR could move immediately against the online traders and websites under existing tax regulations which state that, for each sale of goods or service provided valued at or above PHP25, receipts have to be issued by the seller or provider.

TAGS: individuals | compliance | tax | business | tax compliance | commerce | entrepreneurs | Philippines | tax authority | internet | e-commerce | revenue statistics | regulation | retail | individual income tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »