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DOF, BIR studying proposals to tax online activities

The Department of Finance (DOF), through its attached agency Bureau of Internal Revenue (BIR), said it is now looking at how to impose taxes on digital activities such as online sales and streaming services.

In a Senate hearing, Finance Secretary Carlos Dominguez III said the DOF and the BIR are now looking at proposals to impose taxes on services offered by companies such as Netflix and Lazada.

"We have started the study on improving our tax collections on video streaming, on commerce conducted through the internet," Dominguez  told lawmakers on Wednesday.

"What we are trying to figure out is how we can implement a tax collection program, so now our team from the BIR and the DOF is working very hard to determine the way to tax transactions that are supposed to be taxed but are escaping taxation because they are on the internet," added Dominguez.

Dominguez said that while studies are ongoing, there is still no clear picture on the possible collections from online activities.

House Committee on Ways and Means chair Joey Salceda earlier this week filed a measure seeking to impose taxes on digital services.

Senator Ramon Bong Re villa Jr. on Wednesday said he has filed a similar measure. — Jon Viktor D. Cabuenas/RSJ, GMA News