Philippines to tax foreign-based digital service providers

MANILA, Oct 02 (AFP): Philippine President Ferdinand Marcos on Wednesday signed into law a measure that imposes a 12 per cent value-added tax on foreign-based firms providing digital services in the country.

The tax applies to a vast range of products and services including search engines, software licensing, mobile apps, online games, webinars, music, advertising, warehousing and cloud services, website hosting, and electronic marketplaces.

"Whether you are a small tech start-up or a global tech giant based halfway around the world, if you are making money here in the Philippines, you are part of our community," Marcos said in a speech at a signing ceremony attended by legislators.

"Local businesses and international digital platforms now compete on equal terms. We no longer will be playing by different sets of rules."