of the Philippines .
The new law levels the playing field between local and foreign digital service providers by mandating a 12-percent value-added tax on all digital services consumed in the Philippines. At present, only local DSPs are subject to paying the 12-percent VAT. Meanwhile, PAMURI director Mimi Lopez Malvar committed to participating in crafting the IRR so that companies have a clear understanding of what constitutes digital services.
Meanwhile, the JFC recognized that Package 4 of the Comprehensive Tax Reform Program would be critical to strengthening economic competitiveness and improving the business climate in the Philippines.
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