House bill No 1745 amending amending Section 105 of the NIRC authoreddby Rep Joey Salceda
A tax expert was interviewed in the TV this morining (PM) in Cambridge USA regarding taxing the players in the digital space. All ready there is howling from the mini players doing their on on line selling at various digital plat form
1. Who are to be taxed? The soc media, the local players on line selling, their suppliers.
Truly BIR sees this as revenue source because: 1. There is marked shift especially from bricks and
mortar firm to on line sellers: big ones and resellers . Bricks and mortars firms: malls, restaurants
small stores etc lost their business to on line digital sellers. 2. The pandemic saw shifts to on llne
modesl 1. deliveries 2. on line banking - payments and even investments 3. deliveries
4. on line medical services and more
And yet they are not taxed. Most especially the big firms based in USA They are taxed in USA,
get most of their revenues here, but do not pay any tax. Like in the last election, billions were
spent locally by the candidates, but they did not pay taxes here.
It is fair and just for the digital platforms
2. We should separate frist time sellers or the SMEs and not group them with #1 Thus the books of accounts and regular reporting with BIR should be dispensed with and simple taxation should be
implemented. One sector of the cabinet spouses growth of SMEs but a move to tax up and coming
business hould be discouraged
3. In the past we have passed laws that were unique like taxing cosmetic surgery however none was
ever collected. BIR may not have the resources nor the data to effect the collection. Can BIR collect this new taxes
