Q: Taxes for e-commerce businesses in the Philippines

Answer:

The types and standards of taxation for e-commerce businesses in the Philippines are exactly the same as those for brick-and-mortar businesses, with no special policies or tax rates. What are the taxes involved in the daily operation of an e-commerce business and what are the respective tax rates?
 There are three main types of taxes to be filed: value-added tax, income tax, withholding and stamp duty.
 01 Value Added Tax (VAT)
 There is a difference between VAT registration and non-VAT registration when a company chooses to pay VAT.
 An enterprise registered for VAT is subject to VAT at a rate of 12% on the sale, exchange or exchange of leased goods or property, or the provision of services, and on any individual who imports goods in the course of trade or business activities.

02 Individual Income Tax
 Sole proprietorship is subject to personal income tax, and the tax rate is paid in accordance with the annual profit of the registered person in the year, the higher the profit, the higher the income tax rate.
 03 Corporate Income Tax
 A joint-stock company is subject to corporate income tax. The corporate income tax is based on profits and is not payable if the company loses money.
 The corporate income tax rate in the Philippines is fixed at 30% of taxable income. Taxable income includes the relevant items of gross income subject to income tax, less deductions allowed under the Philippine Internal Revenue Code.
 04 Withholding Tax and Stamp Duty
 Withholding Tax
 Withholding tax is imposed at the rate of 15% on dividends distributed by a Philippine corporation to non-residents if the country of the non-resident foreign corporation receiving the dividends allows a 15% tax credit
 Stamp Duty
 Different tax rates apply depending on the type of tax bracket