THE Chief Executive signed recently a law imposing an additional tax on Philippine Offshore Gaming Operators (POGOs), Presidential spokesperson Harry Roque announced Thursday.
In a virtual press briefing, Roque explained that Republic Act 11590 was signed by President Rodrigo Duterte to regulate all forms of gambling excluding those deemed illegal in nature.
“Ang paglagda ng batas ay bahagi ng pagsisikap ng gobyerno na i-regulate lahat ng uri ng ligal na pagsusugal at ipagbawal ang illegal gambling operations sa bansa,” Roque said.
Under the law, a 5 percent gaming tax on services rendered by licensed POGOs will be imposed.
This, on top of the 2 percent maximum regulatory fees which may be added by the Philippine Amusement and Gaming Corporation (PAGCOR) or any special economic, tourism, or freeport authority.
“All foreign employees of offshore gaming licensees and their service providers, regardless of nature of employment, shall have a tax identification number (TIN),” it added.
POGOs—as enshrined in the law—may either have their primary and other government licenses revoked, perpetually or temporarily be barred from engaging foreign nationals in their operations, or shall be fined P20,000 for every foreigner who will fail to acquire TIN.
Foreigners employed under offshore gaming licensees and service providers shall moreover pay 25 percent withholding tax and minimum final withholding tax of ₱12,500.
Of the total tax collected from the offshore gaming operators, 60 percent will be allocated for the implementation of Republic Act 11223 otherwise known as the Universal Health Care Act.
On the other hand, 20 percent of the total accumulated revenue will be utilized for the Health Facilities Enhancement Program (HFEP), while the remaining 20 percent will be allotted for the attainment of Sustainable Development Goals (SDG).
In May, Duterte has first signed the bill as urgent and now enacted it into a law as part of the nation’s efforts to ramp up revenues and revive its economy from the woes brought by the COVID-19 pandemic.
The law will take effect on October 7, 2021—exactly 15 days after its publication in the Official Gazette or in any newspaper of general circulation.
Within 90 days after the effectivity, the Secretary of Finance will promulgate the implementing rules and regulations (IRR) upon the Bureau of Internal Revenue’s recommendation.
Senator Pia Cayetano, chairperson of the Senate Committee on Ways and Means, has earlier underscored that the government could yield up to P28.7 billion in revenues in 2021, should the law be approved.
Last August, PAGCOR Chairperson Andrea Domingo however said that many of the players have moved to other neighboring countries this year, which cut down the number of POGOs to half and decreased the revenues.
The official shared that only P1.6 billion were collected from POGOs in the first half of 2021.