The Perceived Effects of Taxation on the Financial Dimension of Selected Businesses with Online Platforms in a Philippine City

E-commerce offers entrepreneurs worldwide a new way to market their products and services and helps users conveniently transact with business entities. This emergence and growth of Ecommerce as a new paradigm of conducting the sale of goods and services online had triggered a stricter tax imposition upon business conduct over the internet. While taxation was crucial in securing budget revenue for the government, its effects on online businesses were often overlooked. This paper employed a descriptive quantitative research method to determine the effects of taxation on the financial dimension of selected businesses with online platforms in a Philippine City. Moreover, this study used a purposive sampling method to select the sample from the population to get a reliable result. The frequency count, percentage, average weighted mean, and chi-square test were used as statistical tools in analyzing the data. Results of the study show that the majority of the businesses with online platforms were affected by taxation in terms of profitability and growth of the business. Moreover, most businesses considered tax compliance costs to be a major business expense. Likewise, there were significant associations between the annual income of online businesses and their perceptions of the effect of taxation on the financial projection of profit, pricing of goods and services, tax compliance cost under profitability, and savings undergrowth. However, the study revealed no significant association between annual income and the effect of taxation on the expansion of business.