Towards taxation of the emerging internet advertising industry

• Main Author: Lumagui, Rommel D.
• Format: text
• Language: English
• Published: Animo Repository 2011
• Subjects: Internet advertising—Taxation—Philippines; Internet advertising—Taxation—Law and legislation—Philippines; Intellectual Property Law
• Online Access: https://animorepository.dlsu.edu.ph/etd_masteral/6981
• Institution: De La Salle University

The advertising industry has dramatically changed with the rapid development of the Internet. The introduction of this new technology can be seen as a threat to the industry by increasing the competition for advertising revenues as well as providing for a substitute. What aggravates the situation is the difference in the tax treatment of advertising through the Internet by unintentional non-taxation. This paper analyzes the taxation system of the Philippines vis-à-vis pertinent laws and tax principles, technology, taxpayers, international taxation frameworks, and administration. It focuses on the Philippine Income Tax from where the concepts will be applied. It is concluded that the industry is ripe for taxation as there are no legal, technological, administrative, or industry impediments and it is recommended that the Bureau of Internal Revenue should create an Internet Tax Division for the proper enforcement of the tax.