To familiarize everyone with key socioeconomic terms and concepts, we are launching this new social media series.
For this week, our buzzword is “digital tax”.
Digital tax may be described as a tax on goods and services facilitated through digital technologies.
A PIDS study showed that digital tax raises many questions, given the multifaceted nature of the digital economy. For one thing, there is no universally agreed definition yet of the “digital economy” or the “digital sector”. Many factors are at play in defining digital goods and services. Some of these are the jurisdiction over goods and services traded online, given the cross-border flow of digital goods and services, and the extent of involvement of technology-mediated sellers and providers.
These are some of the issues that need to be clarified to capture the value of the digital economy, which traditional tax mechanisms may overlook.
Know more about digital tax concerns by reading “Emerging Issues in the Digital Economy” available at https://pids.gov.ph/publication/discussion-papers/emerging-tax-issues-in-the-digital-economy.
