Netflix, Disney+, Amazon Hit By Philippine's New 12% Tax On Digital Providers
Portfolio Pulse from Anusuya Lahiri
The Philippines has imposed a 12% VAT on non-resident digital service providers, affecting companies like Netflix, Disney+, Amazon, and others. This tax aims to level the playing field with local providers and is expected to generate significant revenue for the government.

October 02, 2024 | 5:13 pm
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NEUTRAL IMPACT
Amazon is affected by the new 12% VAT in the Philippines, which could impact its digital services revenue from the region.
The new tax could affect Amazon's digital services revenue in the Philippines, but the overall impact on the company's vast operations is likely limited.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Disney+ is subject to the new 12% VAT in the Philippines, which may affect its revenue from the region. Disney's stock has risen 15% over the past year, supported by streaming growth.
The tax could impact Disney+'s revenue in the Philippines, but the company's overall growth in streaming may help offset this.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Google is subject to the new 12% VAT in the Philippines, which may affect its revenue from digital services in the region.
The tax could impact Google's digital services revenue in the Philippines, but the overall effect on the company's global operations is likely minimal.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Netflix is affected by the new 12% VAT in the Philippines, which could impact its revenue from the region. However, its stock has been performing well, with an 87% increase over the past year.
The new tax could affect Netflix's revenue from the Philippines, but the company's strong overall performance and market share gains may mitigate the impact.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Spotify is affected by the new 12% VAT in the Philippines, which could impact its revenue from the region.
The new tax could affect Spotify's revenue in the Philippines, but the overall impact on the company's global operations is likely limited.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Warner Bros. Discovery's HBO Go is subject to the new 12% VAT in the Philippines, which may affect its revenue from the region.
The tax could impact HBO Go's revenue in the Philippines, but the overall effect on Warner Bros. Discovery's operations is likely minimal.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70