Date Published:
Feb 21, 2023
Policy Notes
PN 2023-02

The digital economy has been growing unprecedentedly. However, taxing digital transactions has remained a challenge for the government, given the content and structure of the country’s taxation law. This Policy Note proposes a method for tracing, visualizing, and analyzing digital transactions’ value flow. It argues that companies in e-commerce systems are linked through a value chain and the value flows in the digital sector vis-à-vis the degree to which tax law can capture these flows can be modeled as a network structure. Hence, it notes that rendering actors and flows of value as a network produces intuitive and mathematical analyses that could provide not only a positive description of the value flow but also normative evaluations that could guide tax policies. Finally, it highlights the need to optimize tax authority over digital platforms, establish a digital-ready tax administration system, expand the scope for investigation and liability, and increase international engagement. 


This publication has been cited 2 times

In the Media
  1. Jocson, Luisa Maria Jacinta. 2023. Need to tax digital activities seen as urgent, but ‘equitable’ taxation of platforms an issue. BusinessWorld.
  2. Monzon, Alden. 2023. BIR to boost int’l tax collection. Inquirer.

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