POGO Facts and Taxation

Philippine Offshore Gaming Operations (POGOs) Facts

* Required to secure franchise/license to operate from PAGCOR * Filipino citizens and any individual in the Philippines regardless of citizenship are not allowed to play * Chinese workers who work for POGO earn around 80k - 130kphp a month plus other benefits

POGO Taxation

* No specific provision in the tax code * BIR relased RMC 102-2017 for the taxation of POGOs * Under the RMC, a Franchise Tax of 5% (in lieu of all taxes) based on gross gaming receipts shall be imposed and collected * Income from non-gaming operations shall be subject to normal income tax, VAT and other applicable taxes * Purchases of goods and services are subject to appropriate withholding taxes

Majority of the 60 licensed POGOs failed to pay the government an estimated total of P50 billion in withholding and franchise taxes in 2019 - Atty. Sixto Dy Jr. from BIR

Given that the supposedly tax revenues from these operators are not collected, have we actually played our cards right?

#TaxBreak with #VPA