Taxing Free Online Content

Absurd as it may sound, that is effectively what the draft of an NTC Memorandum Circular may end up doing if it is implemented: taxing online content from the Philippines!

The draft Memorandum Circular, dated December 22, 2008, is entitled “GUIDELINES ON THE PROVISION OF CONTENTS, INFORMATION, APPLICATIONS, AND ELECTRONIC GAMES“. In section B Registration, number 1, the document states:

Contents, Information, Applications and/or Electronic Games Providers, Contents Developers, Information Sources, Applications Developers, and Electronic Games Developers are required to have commercial presence in the country and shall secure Certificate of Registration (COR) from the Commission.

The NTC document defines “Providers” as:

… persons or entities offering and providing contents (or information, applications, or electronic games — additions are mine) to the public for compensation through the networks, systems and/or facilities of authorized networks, systems and/or facilities providers.

Take note, it says these are those who provide something for compensation. At first blush, this would seem to exclude most bloggers, those who post on forums and social networking sites, and others who don’t really get paid for putting content online.

On the other hand, the NTC document also makes these other definitions:

i. Contents Developers – are persons or entities creating contents.
j. Information Sources – are persons or entities providing information to Information Providers.
k. Applications Developer – are persons or entities creating applications.
l. Electronic Games Developer – are persons or entities creating electronic games.

All of these are also required to have a “commercial presence” in the Philippines and to register with the NTC.

Now it looks to me that these definitions are broad enough to actually INCLUDE bloggers and others who create and post free content online since there is no compensation requirement specificed (unlike with “providers”).

So, does that mean I have to register in order to legally continue with this blog?

The NTC wishes to impose a P300 filing fee and a P6000 annual regfistration fee. Do these people think I am going to give them my hard-earned money for some nebulous claimed benefit? They know what they can kiss!

This latest shenanigan from the NTC is yet another putrid exhalation from some vacuous chamber atop a pair of shoulders. One would think that if the NTC would like to regulate certain commercial entities (ostensibly for the benefit of the public and the entities themselves) then it would at least try to define the extent of the regulations properly. As it is, this draft Memorandum Circular is so broad in coverage that even a child posting something in his Facebook account could be required to register!

Did the people who drafted this document even deign to examine the text thoroughly before inflicting it on the public? Do they expect us to do their work for them?

I guess you all know the answer to those questions.

What a waste of taxpayers’ money!!!