The Manila Times

DoF reaffirms support for POGO taxation bill

MAYVELIN U. CARABALLO

THE Department of Finance has reaffirmed its support for the proposed legislation requiring the taxation of Philippine offshore gaming operators (POGO).

Over the weekend, Finance Secretary Carlos Dominguez 3rd told reporters, “We are generally supportive of the POGO taxation bill as it will once and for all settle the tax treatment of POGOs and their employees, and address tax leakages within the industry.”

The Senate passed Senate Bill 2232 on its third and final reading last month. According to the bill, all offshore gaming licensees, whether Philippine or foreignbased, will be deemed doing business in the Philippines and will be required to pay a 5-percent gaming tax on their gross gaming revenue or receipts.

A 25-percent withholding tax will be imposed on foreigners employed by offshore gambling licensees and service providers.

For any taxable month, the measure mandates a minimum final withholding tax of P12,500. POGO receipts are expected to reach P28.7 billion in 2021 and P3 billion the following year if the bill is signed into law.

Albay Second District Rep. Jose Maria “Joey” Salceda announced earlier that the House of Representatives will adopt the Senate version of the bill.

“The House leadership, at my recommendation, will adopt the POGO tax regime approved by the Senate. That version contains only minor reworkings of the House version, and there is no difference between their tax rates and tax bases, and those of the House version,” he explained.

“We were the first draft, and they made very few modifications. So, recognizing the respect that the Senate extended to the House version, we will adopt their changes, which in my view are acceptable,” the congressman added.

The Philippine Amusement and Gaming Corp. (Pagcor) has said 33 POGO and 200 service providers have already stopped their operations in the country as the coronavirus disease 2019 (Covid-19) pandemic related restrictions continue to hit the gaming industry.

With this, Pagcor Chairman and Chief Executive Officer Andrea Domingo said the income of POGO segment will not even reach half of the P8 to P9 billion a year it earned in the pre-pandemic years.

Business Times

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2021-07-25T07:00:00.0000000Z

2021-07-25T07:00:00.0000000Z

https://digitaledition.manilatimes.net/article/281857236564460

The Manila Times