- The Philippines will maintain its 12% digital VAT on foreign technology companies, including American firms, despite potential tariff threats from US President Donald Trump. Finance Secretary Ralph Recto stated that the country cannot alter its tax policy based on uncertain US trade actions. The digital VAT, established by Republic Act No. 12023, is expected to generate P102 billion from 2025 to 2029, helping to address the budget deficit. The US has opposed such digital taxes, claiming they unfairly target American companies. The Philippines aims to raise P4.98 trillion in revenues this year and plans to borrow P2.6 trillion to cover a P1.6-trillion budget deficit. BMI Research warned that increased US tariffs could negatively impact the Philippine economy.
Source: panaynews.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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