department of trade and industry dti

The Philippines Just Rewrote the Rules for Online Business

5 Urgent Changes from the Internet Transactions Act You Can’t Ignore

Philippines e-commerce trustmark DTI guidelines

No More Shortcuts
E-Commerce Compliance Is Now Non-Negotiable

The rapid rise of e-commerce in the Philippines has been exciting, but it also created a digital “Wild West.” Scams, fake sellers, bogus buyers—you name it, we had it.

That’s over.

With Republic Act No. 11967, the Internet Transactions Act of 2023, the rules of the game have changed. And with the release of DAO No. 25-07 S. 2025, the E-Commerce Philippine Trustmark is now mandatory.

If you sell online—whether you’re on Shopee, Lazada, TikTok Shop, your own website, or even Facebook Marketplace—this is no longer optional. You either comply or risk takedowns, penalties, and being blacklisted.

Here are the five urgent changes you need to understand and act on:

1. Platforms Are No Longer Just Middlemen

Before, platforms could say, “We’re just the venue, don’t blame us.” Not anymore. Under the Internet Transactions Act, platforms like Lazada, Shopee, and even Facebook Marketplace share legal responsibility for sellers’ actions.

That means stricter merchant checks, faster takedowns, and possibly higher seller fees. If your documents aren’t complete and your business isn’t compliant, don’t be surprised if you get delisted.

2. The Government Can Shut You Down—Fast

Thanks to the new takedown order power, the Department of Trade and Industry (DTI) can now remove your listings instantly—no hearing first.

Illegal goods, fake items, unsafe services—gone in a flash. And if you don’t comply? You could face blacklisting and fines up to ₱1,000,000.

3. “Bogus Buyers” Get Penalized—But Sellers Step Up Too

The law, RA 11967 Chapter 4, SEC. 19. Obligations of Online Consumers, finally cracks down on fake buyers who cancel last minute. Great news for sellers! But here’s the catch: sellers are now 100% accountable for product accuracy and quality.

Wrong specs, misleading photos, or defective products? You’re liable for refund, repair, or replacement.

4. Foreign Sellers Must Also Play by the Rules

Even sellers with no office in the Philippines are covered. If they target Filipino customers, they must comply with Philippine laws.

This evens the playing field. Local sellers who are compliant can now market themselves as safer, more trustworthy, and officially recognized.

5. The Trustmark Is Now Mandatory (DAO No. 25-07 S. 2025)

Here’s the biggest shift: the E-Commerce Philippine Trustmark is no longer just encouraged—it’s required.

DAO No. 25-07 S. 2025 makes the Trustmark mandatory for all online businesses operating in the Philippines. No Trustmark, no business. You will have until December 31, 2025 to comply.

Key Facts You Need to Know:

  • Cost: ₱1,130.00 per year
  • Validity: 1 year (renewable)
  • Requirements: Business registration + complaint-handling process
  • What It Means: Compliance with consumer protection, data privacy, and security laws

And remember: this Trustmark is different from “Top Seller” or “LazMall” badges. Those are platform-only. The Trustmark is government-issued and recognized across all platforms.

Adapt or Be Left Behind

This isn’t just regulation—it’s a reset of the entire e-commerce ecosystem. The Internet Transactions Act + DAO No. 25-07 S. 2025 means only serious, compliant, and trustworthy businesses will survive.

So, here’s the bottom line:
✅ Register your business properly
✅ Audit your listings for accuracy
✅ Secure your Trustmark now

This is your chance to stand out, build trust, and future-proof your online business.

The new era of Philippine e-commerce is here. Are you ready to lead—or will you be left behind?

For assistance in starting your business and registering for Trustmark, reach out to us at
https://www.dayananconsulting.com/contact-us/.

PEZA Philippine Economic Zone Authority

Peza Philippine Economic Zone AuthorityPEZA is attached to the Philippine Department of Trade and Industry (DTI).  PEZA is the Philippine government agency tasked to promote investments, extend assistance, register, grant incentives and facilitate the business operations of investors in export-oriented manufacturing and service facilities inside selected areas throughout the country proclaimed by the President as PEZA Special Economic Zones (ecozones).

The PEZA Special Economic Zones has earned the trust of investors with its many locations throughout the Philippines ready for development, offered at a secured and competitive prices. Under PEZA, companies can avail of tax incentives and other benefits.

PEZA’s dynamic, responsive and client-oriented ethics have earned the trust and confidence of foreign and local investors and the Philippines Foreign Chambers of Commerce  in its Special Economic Zones and tax incentives.

PEZA is ISO 9001:2000 certified.

Incentives for Ecozone and IT Locators

  •  Income Tax Holiday (ITH) – 100% exemption from corporate income tax:
    ◦ 4 years ITH for Non-pioneer project
    ◦ 6 years ITH for Pioneer project
    ◦ 3 years ITH for Expansion project (ITH applies to incremental sales)
  • Upon expiry of the Income Tax Holiday – 5% Special Tax on Gross Income and exemption from all national and local taxes. (“Gross Income” refers to gross sales or gross revenues derived from the registered activity, net of sales discounts, sales returns and allowances and minus cost of sales or direct costs but before any deduction is made for administrative expenses or incidental losses during a given taxable period)
  • Exemption from Wharfage Dues and Export Taxes, Imposts and Fees
  • Special Non-Immigrant Visa 47(a)2 with Multiple Entry Privileges for the following non-resident Foreign Nationals in a PEZA-registered Economic Zone Enterprise : Investor/s, officers, and employees in supervisory, technical or advisory position, and their spouses and unmarried children under twenty-one years of age. PEZA extends Visa Facilitation Assistance to foreign nationals their spouses and dependents.
  • Employment of foreign nationals
  • Simplified Import and Export procedures

Other incentives under Executive Order 226 (Omnibus Investment Code of 1987), as may be determined by the Philippine Economic Zone Authority Board.

Note: The companies registered with the Subic Bay Metropolitan Authority (SBMA) or Subic Bay Freeport Zone and the Clark Freeport Zone (CDC), are not eligible for the Income Tax Holidays, but will enjoy a 5% tax on gross income.

To benefit of PEZA’s tax breaks and incentives, a company needs to register and locate its operations in one of the PEZAs’ Special Economic Zones, IT Parks, Technology Parks, or buildings. Businesses inside the PEZA zones must export 100% of their production/services but in some special cases an exemption can be granted for the sale of up to 30% of its production/services to be sold in the domestic market.

A company located in the PEZA zone may be 100% foreign owned business  as long as its activities are not listed in the Foreign Investment Negative List. The registration approval and the incentives granted by PEZA is given on a case by case basis.

The establishment of PEZA and the laws regulating its tax incentives and other benefits available to investors in  the Philippines Special Economic Zones was enacted by the Special Economic Zone Act of 1995 (Republic Act No. 7916).

For companies that will not avail of PEZA incentives see the rules on foreign ownership of Philippine companies.

Tax  breaks and incentives of the Philippines Board of Investments

BOI Philippines Board of Investments

The Philippines’ Board of Investments (BOI) operates under the authority of the Department of Trade and Industry (DTI). The BOI is the leading government agency for promoting local and foreign investments in the Philippines. By focusing on globally competitive industries, the BOI’s aim is to stimulate economic prosperity and employment for the country. The agency promotes the sustainable use of the state’s resources and the cooperation of the government with private investors through preferred areas of business which are published once a year in the Investment Priorities Plan (IPP). The IPP is drawn up  by an inter-agency delegation and approved by the President; it lists specific areas of activities which qualify a business for incentives.

Projects registered with the BOI can avail from fiscal incentives and tax breaks:

•Income Tax Holiday *
•Exemption From Wharf Dues and Export Tax, Duty, Impost and Fees
•Exemption From Taxes and Duties on Imported Spare Parts
•Tax Exemption on Breeding Stocks and Genetic Materials
•Tax Credits
•Additional Deductions from Taxable Income

* 3 to 8 years of Income Tax Holiday and 4 to 6 years of local business tax exemption respectively for non-pioneer and pioneer industries.

There are different requirements for pioneer and non-pioneer industries.

•  Pioneer industries: 100% foreign owned companies are entitled to incentives if:

◊ at least 70% of their services/products are intended for export, or
◊ its projects are undertaken in less-developed areas of the Philippines as listed by the BOI.

These enterprises are required to attain 60% Filipino-ownership within 30 years of registration  with the BOI unless they are exporting or intend to export 100% of their services/production.

•  Non-pioneer industries: Foreign ownership is limited to 40%, unless 70% of the  annual production is exported.

Incentives may still be granted to businesses whose activity is not included in the IPP, under one of these conditions:

1) The enterprise is at least 60% Filipino-owned  and 50% or more of the services/products are intended for export , or

2) The company is more than 40%  foreign-owned and 70% or more of the services/products is intended for export.

Note: Outsourcing, Back Office, Call Centers, BPO, KPO, LPO and FPO activities are considered 100% export.

For all local and foreign companies wishing to register at the BOI, Dayanan Philippines Business Consultancy will:

– Ascertain if your  business qualifies for BOI incentives
– Assist in finding a BOI approved location
– Prepare  and submit of all the required documents  for Philippines BOI registration