Skip links

Philippines e-marketplace operators withholding tax delayed

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


Get our latest news right in your mailbox