Starting June 1, Netflix subscribers in the Philippines will see an increase in their monthly subscription fees as the country begins enforcing a new tax regulation targeting digital services.
This adjustment comes in response to Republic Act No. 12023, a law signed by President Ferdinand Marcos Jr. on October 2, 2024, which mandates a 12% value-added tax (VAT) on foreign digital platforms operating in the Philippines. The measure is aimed at leveling the playing field between local and international service providers while also boosting government revenue.
Netflix has already updated the pricing details across its official Help Center and subscription pages as of May 6. Subscribers have begun receiving emails notifying them of the upcoming rate hike.
Updated Netflix subscription plans (Effective June 1):
- Mobile: ₱169/month (up from ₱149)
- Basic: ₱279/month (up from ₱249)
- Standard: ₱449/month (up from ₱399)
- Premium: ₱619/month (up from ₱549)
- Extra Member Slots (for Standard and Premium): ₱169/month (up from ₱149)
Netflix is among the first to implement the new pricing structure, but it’s expected that other digital platforms—including Disney+, Prime Video, Max, Spotify, and Apple Music—will follow suit in the coming weeks as the tax law’s implementation date approaches.
According to estimates from the Department of Finance, the government anticipates collecting ₱102.12 billion in revenue from these digital service taxes between 2025 and 2028.
This move reflects a broader global trend of countries extending their tax frameworks to include digital services, particularly from foreign-based providers that have seen increasing market share without previously being taxed under local laws.
