How to build the ROI for an AI project and account honestly for the 12% VAT on digital services and any withholding tax along the way.

dgm is an independent osFoundry implementation partner — not affiliated with osFoundry’s developer (the company OS LLC), and it has not yet completed any client integrations.

The return on AI is built on time saved, quality and revenue gained — and it must account honestly for the 12% VAT on foreign digital services and any withholding tax.

What the scheme actually gives

  • Measure the return on one clear task (time saved, fewer errors, faster handling) before scaling.
  • Lower the cost with usage-based pricing, BYOK and phased adoption.
  • Add the true cost of foreign AI/SaaS: the 12% VAT under RA 12023 and, where a royalty, a 25% final withholding tax (treaty-reducible).

Does it fund buying AI software?

The return comes from operational value and a realistic cost picture — including VAT and any withholding tax — not from state support to buy the tool. A platform such as osFoundry lowers the cost structurally through usage-based pricing and the BYOK principle — which helps more than waiting for support that does not cover software.

Important note

This article is general information and is not legal, tax or grant advice. Tax incentives, grants, rules and rates change, and only the relevant authorities (among them the National Privacy Commission, the Bureau of Internal Revenue, PEZA, the Board of Investments, the Bangko Sentral ng Pilipinas and the SEC) decide eligibility and awards. dgm is not a registered business enterprise, accredited incentive provider or intermediary. Always confirm the current terms with the official source or a qualified tax or legal adviser.

How dgm helps

dgm is an independent implementation partner that helps businesses in the Philippines adopt osFoundry — from identifying the first practical use case, through building it, to connecting AI to the systems you already use. dgm works independently of osFoundry’s developer (the company OS LLC) and has not yet completed any client integrations; everything above is therefore a description of the service offered, not a delivered result. If you would like to look at a sensible first step, dgm is happy to think it through with you. Arrange a no-obligation conversation with dgm.