Synthesis

Ever since the Global pandemic, local Governments have been trying to explore digital

businesses within the Philippines, because of the continuous improvement of technology digital

businesses have become normal and many in numbers the BIR is trying to transition to digital in order for

compliances to become easier and efficient to digital businesses (Coloquio, J., 2020). Because of the rise

of these digital businesses, BIR now imposed RMC-60-2020 to regulate online selling, many of these

businesses are now expected to register, to file taxes, as well as to pay (if this specific market exceeds the

imposed threshold for gross income/receipts, then they are expected to pay taxes, if not, they are

exempted). (Pagaspas, G., 2020).

The pandemic is also the reason why, these digital markets increase, the longer the pandemic

goes, the more people put up online businesses, this is because 23% of Filipino internet users are

spending their time doing online shopping. Because of these quarantine protocols or rules imposed by the

Governments in order to minimize the move of the virus, the online businesses became a necessity,

entrepreneurs have started to accept that online businesses within the E-commerce are now what is

common and is expected to surge that it is earning millions of pesos in its sales revenues (Arreola, R.,

2020). The rise of online businesses was already in the eyes of BIR even before the pandemic began, they

were already trying to regulate these online businesses, but they were having a hard time to even if there

was no pandemic yet. It was already noted by the BIR that these online businesses are already growing or

increasing even before the pandemic started (Coloquio, J., 2020). One of the main reasons why these

digital markets rise is because, many consumers feel more comfortable buying online because it is more

convenient than going to a physical store (Rahman, 2018) The growth of the Internet as a global network

has resulted in an increase in digital markets because these consumers and small entrepreneurs have

access to the online market. (Basu, 2003).

 Entrepreneurs see online selling as an opportunity to generate more income than putting up

physical stores, this is because a small portion of these online businesses are only regulated or taxed,

entrepreneurs see this as an opportunity to grow income especially this pandemic since the movement of

people is limited (Simkin, et al.). These online businesses are starting to adapt to e-commerce markets

faster as sales in digital markets for groceries have increased in double in the middle of march compared

to the earlier months. Some online sellers of supplies have shown increase in sales ever since they started.

The government have been put in a strain on state in terms of its ability to generate tax revenues because

of COVID-19 and its recent economic downturn due to lockdowns, because of this strain it served as a

factor on why these e-commerce markets are rapidly growing in numbers (Oven & Hicintuka, 2020).