President Marcos Jr. Signs Law Imposing 12% VAT on Foreign Digital Services in the Philippines

International streaming platforms are set to become more expensive due to a newly signed law. Republic Act 12023, enacted by President Ferdinand R. Marcos Jr., imposes a 12 percent value-added tax (VAT) on foreign digital service providers (DSPs).

The law targets platforms like Netflix, Disney, and HBO, aiming to boost government revenue, create jobs, and enhance the competitiveness of local providers. As one of the administration's priority measures, this tax will impact the cost of popular digital services used by Filipinos.

Marcos stated in his message that local suppliers would have equal opportunities under the new law.

It is only fair that you support the expansion of the digital economy if you benefit from a thriving one here.

Ultimately, any company that generates revenue in the Philippines, regardless of its size—from a little startup to a multinational conglomerate with headquarters located halfway across the globe—belongs to our community and bears a shared duty, according to Marcos.

The President states that RA 12023 will likely generate roughly PHP105 billion in revenue over the course of the next five years.