Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR. 
AN ACT 
ESTABLISHING DIGITAL AMUSEMENT TAXATION IN THE PHILIPPINES 
EXPLANATORY NOTE 
Since the COVID-19 pandemic started, the economy of the whole world shifted to the digital 
economy. The strict guidelines and quarantine procedures forced our constituents to consume alternative 
modes of trade, shopping, and entertainment. Specifically, the masses started to utilize digital markets 
and entertainment services. Hence, most businesses in the country adapted and created their own online 
businesses. 
The shift to the online economy led to increased consumption of the digital streaming services. 
This has opened an opportunity for the State to regulate and raise revenue through taxation of the said 
streaming services.  
Currently, amusement tax is being levied by provinces through the virtue of Republic Act No. 
9640. This Act allows the provinces to collect tax, amounting to 10% of the gross sales, from the 
proprietors, lessees, or operators of theaters, cinemas, concert halls, and other places of amusement.  
The collection of ten percent (10%) amusement tax from gross sales to the consumers in the 
Philippines may be extended to digital streaming service providers. Every digital streaming service 
provider must register with the Bureau of Internal Revenue. Digital Streaming Service Returns must be 
filed every quarter of the year for monitoring and revenue collection.  
In the view of the foregoing, the immediate passing of this bill is earnestly sought. 
TEODORICO T. HARESCO, JR
August 8, 2022
3:42 pm
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NINETEENTH CONGRESS OF THE 
 REPUBLIC OF THE PHILIPPINES 
First Regular Session 
House Bill No. _______ 
Introduced by Representative TEODORICO “NONONG” T. HARESCO, JR. 
AN ACT 
ESTABLISHING DIGITAL AMUSEMENT TAXATION IN THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the “Digital
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Amusement Taxation Act.” 
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SECTION 2. Declaration of Policy. – The State recognizes the vital role of 
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communication and information in nation-building. Moreover, the State may 
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prioritize introducing fiscal policies that will allow the regulation and raising 
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of revenue from the industry of information and technology, specifically on 
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digital amusement–streaming services.  
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SECTION 3. Definition of Terms. – The following terms shall be defined as 
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follows: 
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(a) Digital Streaming Services shall mean any streaming service that is
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subscribed over the internet or other electronic network and the
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delivery of the service is automated. Digital streaming services shall
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include, but not limited to, provision of digital content like music,
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dramas, movies, and concerts.
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(b) Digital Streaming Service Provider shall mean any entity, whether local
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or foreign, giving, providing, or rendering digital streaming services to a
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consumer based in the Philippines, operating an online platform for the
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purpose of the provision of digital streaming services on behalf of any
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Filipino citizen.
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(c) Consumer shall mean any person who acquires taxable digital
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streaming services in the Philippines, whether from local or foreign
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service providers. A person is a consumer of digital streaming service
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by fulfilling any of the following:
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a. Makes payment for digital streaming services using credit or debit
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facility provided for by any financial institution or company in the
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}
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Philippines. 
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b. Acquires digital streaming services using an internet protocol 
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address registered in the Philippines or an international mobile 
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phone country code assigned to the Philippines. 
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SECTION 4. Digital Streaming Service Tax. – Effective January 1, 2023, 
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all digital streaming service providers shall be charged and levied with ten 
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percent (10%) of its gross sales on its digital services rendered to the 
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Philippines-based consumers. 
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SECTION 5. Registration and Filing of Returns. If the value of the digital 
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streaming services provided exceeds the VAT Threshold of Three Million Pesos 
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(P3,000,000.00) for a year, such service providers shall be required to register 
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and remit to the Bureau of Internal Revenue. Affected service providers shall 
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submit service tax returns every quarter of the year.  
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SECTION 6. Implementing Rules and Regulations. To carry out the 
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provisions of this Act, the implementing rules and regulations shall be 
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promulgated by the Department of Finance, upon the recommendation of the 
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Bureau of Internal Revenue and in coordination with the Department of 
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Information and Communication Technology not later than ninety (90) days 
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after the approval of this Act. 
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SECTION 7. Separability Clause. Should any provision of this Act or any 
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part thereof be declared invalid, the other provisions, so far as they are 
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separable from the invalid ones, shall remain in force and in effect. 
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SECTION 8. Repealing Clause. All laws, decrees, orders, proclamations, 
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rules and regulations or parts thereof, which are inconsistent with this Act 
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are hereby repealed, amended, or modified accordingly. 
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SECTION 9. Effectivity Clause. This Act shall take effect fifteen (15) days 
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after publication in the Official Gazette or in two (2) national newspapers of 
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general circulation. 
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Approved,  
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