0.5% effective WHT by platform operators on sellers of goods or digital services
The Philippines Bureau of Revenue has delayed by 90 days the imposition of a 1% Withholding Tax on 50% of income (0.5% effective rate) on income paid to non-resident sellers by “E-marketplace operators”.
The implementing circular was issued on 15 January 2024, with a compliance deadline of 14 April. This latter date has now been pushed back to 14 July.
The Bill to introduce VAT on Philippines digital services is nearing its parliamentary review process.
E-market operators and Digital Fin Services Providers
Operators provide digital platforms for facilitating sales between Philippine customers and sellers or merchants. This included payment handling, support and shipment organisation. Aside from goods and digital services, they include booking sites for hotels and accommodation.
Digital Finance Services Providers offer digital services assisting in banking, insurance payments and similar.
Asia Pacific Digital Services Taxes (DST)
| Country | Status | Rate | Annual sales threshold | Scope | |
| In-country income | Global income | ||||
| India | Jun 2016 | 6% | Rs 2cores | n/a | Advertising |
| India | Apr 2020 | 2% | INR 20m | n/a | Goods and digital services |
| Indonesia | Mar 2020 | TBC | E-commerce | ||
| Laos | Feb 2024 | TBC | Streaming; ad's; travel & hotel online | ||
| Nepal | Jul 2022 | 2% | NPR 2m | Electronic & digital services | |
| New Zealand | Jan 2025 | 3% | NZ$3.5m | NZ$1.1bn | Social media; Content sharing; Search engine; user data; Intermediation; |
| Pakistan | Sep 2021 | 2% | Nil | Nil | Withholding tax on marketplaces |
| Kyrgystan | Jan 2022 | 2% | Nil | Nil | Tax on digital services B2B and B2C |
| Taiwan | Jan 2017 | WHT Digital and electronic services | |||
| Vietnam | Jan 2021 | 1.5% | Ecommerce tax WHT | ||
