spot_img
27.7 C
Philippines
Friday, March 29, 2024

End of holiday: Du30 signs law taxing POGOs

- Advertisement -

President Rodrigo Duterte has signed into law a measure taxing Philippine offshore gaming operators (POGOs), the Palace said Thursday.

“This [Republic Act No. 11590] is part of our strict regulation of all kinds of gambling and the prohibition of illegal gambling,” presidential spokesman Roque said.

The law amends the National Internal Revenue Code to better collect taxes from POGOs and imposes more taxes aside from the franchise tax levied on their operations.

Under the new law, 60 percent of the total revenue collected from POGOs will be allocated for the implementation of the Universal Healthcare Act.

Twenty percent will be allocated to the Department of Health’s Health Facilities Enhancement Program while another 20 percent for the attainment of the Sustainable Development Goals.

- Advertisement -

Foreigners employed by offshore gaming licensees and service providers will be subjected to a 25-percent withholding tax. The new law provides a minimum final withholding tax due of P12,500 for any taxable month.

Duterte certified the measure as urgent in May, citing the need to generate revenues. The government expects over P120 billion in revenue over the next four years with the new law.

From 2016 to 2019, the revenues collected by Pagcor from POGOs reached over P18 billion.

Last year, the government collected P6.4 billion more following its campaign to run after tax-deficient Pogos.

The Department of Finance estimated the government would be able to collect up to P20 billion a year in corporate and personal income taxes from POGOs.

Meanwhile, the principal author of the newly signed law thanked Duterte, saying the measure would help stabilize the POGO industry which “was wracked by the uncertainty due to the Supreme Court temporary restraining order on their tax treatment.”

House Ways and Means Chair and Albay Rep. Joey Sarte Salceda said: “President Duterte was very clear: He will only allow gaming if they pay the right taxes. This will make sure they do.”

- Advertisement -

LATEST NEWS

Popular Articles