Philippines imposes 12% VAT on Netflix, Disney services
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Philippines imposed a 12% value-added tax (VAT) on non-resident digital service providers, including popular platforms like Netflix (NASDAQ:NFLX), HBO (WBD), and Disney (NYSE:DIS), a local newspaper reported.
The law, signed by President Ferdinand Marcos Jr. on October 2, 2024, aims to create a more equitable tax environment between local and international digital companies operating within the country.
“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.
The new law will level the taxes paid by local businesses and international digital platforms, he added.
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.
Marcos said the government expects to raise ~$1.87B in tax revenues over the next five years, the report added.