The Philippines Senate Proposes Tax Law Changes

Senate Bill No. 2232, an Act Taxing Philippine Offshore Gaming Operations, which would allow the government to collect taxes more efficiently from POGOs has been introduced to the country’s senate.

Senator Pia Cayetano held a sponsorship speech for the Bill and said that these changes would generate additional revenue that can exceed the 7.18 billion collected by the Bureau of Internal Revenue from POGOs last year.

“But considering the proliferation of Pogos in the country in recent years, the potential of this industry as a source of revenue for the government could have been much bigger. It will not only plug the loopholes in our country’s tax code that led to issues of confusion surrounding the operation of Pogos, but it will also prevent similar issues in the future, which could gravely undermine our government’s power to impose and collect the right taxes. By addressing these gaps in our tax system, we can maximize the Pogo industry’s potential as a revenue source. This gaming tax will be in lieu of all taxes,” said Senator Pia Cayetano.

Gaming Tax

Under the bill, all offshore gaming licensees, whether they are of Philippine or foreign origin are considered doing business in the Philippines, must pay 5 percent gaming tax on the gross gaming revenue or receipts derived from their gaming operations.

Alien companies employed by offshore gaming licensees and service providers will be subject to the 25% withholding tax, considering they are not in business within The Philippines borders.

set the yearly gaming revenue all-time record.

In February, the Philippines lawmakers ed the bill to tax online gambling firms, craving down on erring firms with tighter implementation of tax rules. Also, thousands of Chinese persons were banned which led some gambling firms to close their operation in the country.

Source:

“Philippines present new gaming tax system”, sigma.com, May 28, 2021.