Taxing e-commerce transactions: Sweeping non-residents into the Philippine tax dragnet

Date of Publication

1-2008

Document Type

Master's Thesis

Degree Name

Master of Business Administration

Subject Categories

Tax Law | Work, Economy and Organizations

College

Ramon V. Del Rosario College of Business

Department/Unit

Management and Organization

Abstract/Summary

The changing business environment brought about by the rise in E-commerce presents challenges to the existing system of taxation. Hence, the government faces the challenge of adapting the existing tax system to an economy that increasingly ignores physical borders. This study will address the main issue of what E-commerce transactions should be taxed. It will also deal with related issues such as permanent establishment rules, doing business, situs of the transaction and income, and characterization or treatment of digitized (intangible) products. This study is qualitative in nature. This paper applies the case study method to a project designed to examine how the existing tax laws can be adapted to E-commerce transactions to ensure effective and fair imposition of taxes. In taxing E-commerce it should be considered whether the non-resident has established a traditional permanent establishment or by owning, operating and maintaining a server in the Philippines. Another important consideration is the characterization of the transaction. It should be determined if a sale of goods is involved, which results to business profits or one involving payment of royalty. This is to be determined by the use to which the resident buyer will apply to the digitized information. The income tax and VAT liability resulting from the two vary.

Abstract Format

html

Language

English

Format

Electronic

Accession Number

CDTG005175

Shelf Location

Archives, The Learning Commons, 12F Henry Sy, Sr. Hall

Keywords

Electronic commerce—Taxation—Philippines; Electronic commerce—Taxation—Law and legislation—Philippines

Embargo Period

6-4-2023

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