Pera rin ‘yan! House ready to adopt Senate version of bill taxing POGOs

By Billy Begas

House Committee on Ways and Means chairperson and Albay Rep. Joey Salceda was elated with the passage of the proposed tax for Philippine Offshore Gaming Operators (POGO).

Salceda said he is waiting for the copy of the Senate version and willing to adopt it “as long as the reporting standards and the measures against abuse are adequate and robust.”

“The sooner we can pass a fiscal regime for this industry, the better. While the tax laws are unclear, there is plenty of room for abuse and discretion. We need to make things clear soon,” Salceda said.

Malacañang certified the measure as urgent.

Under the version of the House POGOs will be subjected to a 5% tax on gross gaming receipts. Their service providers will be subjected to regular taxes. Non-resident employees of both will be subject to a withholding tax of 25% of gross income, with a presumed income of P600,000.

Alien employees will be taxed regardless of residency or working visa status. POGOs are also considered “doing business in the Philippines,” which Salceda says will allow all Philippine laws to be applicable to them.

“We can regulate them as tightly as we are allowed by our laws to, because the initial confusion about whether POGOs can be taxed is promptly ended. The Office of the Solicitor General opined then that they are offshore business and hence cannot be taxed. That was because the law was ambiguous. I made sure to spell it out in the law that for all legal and tax intents and purposes, they are doing business here. It precludes any of the legal acrobatics,” Salceda explained.

The Philippine Amusement and Gaming Corporation (PAGCOR) and special economic zones are also authorized to charge 2% of gross gaming receipts as regulatory fee.

Salceda said the government may generate P121.9 billion revenue from the measure over the next four years.

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Source: Latest Politics News Today (Politics.com.ph)