Netflix, Amazon, Google… They All Have to Pay Up Now — Here’s Why That Changes Everything for the Philippines
Imagine collecting billions in missed taxes from the world’s biggest tech giants. That’s not a dream anymore — it’s Philippine law. In 2024, the government passed RA No. 12023, known as the VAT on Digital Services Law, requiring global platforms like Netflix, Amazon, Disney+, and Google to pay their share of taxes when doing business in the Philippines. This isn’t just another policy update. It’s the backbone of a larger mission: to fuel national growth, modernize governance, and build a future-ready economy.
If you’re a stakeholder, platform owner, or just a proud Filipino, here’s what you need to know — and why this law will shape the next decade.
What Is RA 12023? RA 12023 mandates a 12% VAT on all digital services sold or consumed within the Philippines. Streaming platforms, cloud services, online marketplaces — if they’re making money here, they’re paying taxes here.
Why This Law Matters:
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Levels the playing field between local and global service providers
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Generates $1.9 billion+ in revenue over five years
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Ensures fair contribution to national infrastructure
Who Enforces It? The Bureau of Internal Revenue (BIR) oversees implementation, but the real engine behind the transformation is the Philippines Modernization Consortium (PMC) — the exclusive digital partner bringing this law to life.
What It Means for the Philippines:
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More funds for education, healthcare, and development
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Global respect for Philippine digital sovereignty
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A stronger ecosystem for innovation
Ready to explore what this means for your business or platform? Book a private briefing