Steam Games Will Now Get Taxed in the Philippines

June 1, 2025, will be a sad day for Filipino gamers. Steam will add a 12% tax to all game purchases in the country. This is a surprise, as AAA games aren’t affordable for Filipinos.

Here’s why Steam added tax to all game purchases and what it means for other neighboring ASEAN countries.

Why Steam Added Tax to Game Purchases in the Philippines

Steam added a 12% tax rate to all game purchases in the Philippines effective on June 1, 2025, following the signed Republic Act 12023 on October 2, 2024. Since the Philippines is now enforcing a 12% VAT (Value-Added Tax) on non-resident digital service providers, foreign companies must collect taxes if they conduct business in the Philippines, even without a physical presence there.

The law aims to modernize the country’s tax system, and it is not new to ASEAN countries; other nations like Indonesia, Malaysia, and Singapore have already implemented the same policies.

All of Steam’s Currently Taxed Countries

While many countries have a way higher tax rate than the Philippines, 12% is still the highest among all ASEAN countries, higher than Indonesia’s 11% and Singapore’s 9%.

It is interesting how this would affect Steam prices, as most of the biggest publishers don’t give Filipinos any regional pricing based on their income. Even with Indonesia having an 11% tax rate on Steam, they still have one of the lowest Steam prices on games, according to Steamdb.info.

Other ASEAN or third-world countries might also consider adopting the same policies in the future, especially since most goods are becoming digital now.