00:00The President may now proceed to sign the enrolled copy.
00:05Upon signing of the harmonized version of House Bill No. 4122 and Senate Bill No. 2528,
00:12it shall be known as Republic Act No. 12023 and titled,
00:18An Act Amending Sections 105, 108, 109, 110, 113, 114, 115, 128, 236, and 288
00:29and adding new Sections 108A and 108B of the National Internal Revenue Code of 1997 as amended.
00:38This measure imposes value-added tax on nonresident digital service providers,
00:44except for educational services including online courses and webinars
00:48and sale of online subscription-based services to educational institutions
00:54purposively to generate additional revenue for the government
00:58and at the same time, level the playing field for local providers that are covered by the existing VAT regime.
01:05Thank you, Mr. President.
01:07The rapid change in our digital landscape has created a gap in our tax system.
01:17Today, we signed the Value-Added Tax and Digital Services Law and we are now bridging that gap.
01:24With this law, we say that if your presence in the Philippine market is as real as your profits,
01:31then your tax responsibility should also be equally tangible.
01:36But make no mistake, we are not imposing new taxes.
01:40We are simply strengthening the authority and streamlining the process of the BIR
01:45to collect value-added tax on digital services.
01:49This includes digital media, digital music, digital video, video on demand, and digital advertising.
01:58Local businesses and international digital platforms now compete on equal terms.
02:04We no longer will be playing by different sets of rules.
02:09If you are reaping the rewards of a fruitful digital economy here,
02:13it is only right that you contribute also to its growth.
02:27For more UN videos visit www.un.org
Comments