Offshore online casinos need BIR registration
The Bureau of Internal Revenue (BIR) said that offshore gaming licensees operating in the Philippines but based abroad are required to register with the local tax agency and pay their dues.
Based on Revenue Memorandum Circular 78-2018 issued last September 6, the BIR stated that all Philippine Offshore Gaming Operators (POGO) licensed the Philippine Amusement and Gaming Corp. (Pagcor) are covered by the local taxes.
BIR said that the term "resident foreign corporation” under RMC No. 102-2017 that governs the taxation on online casinos also covers POGOs that are based outside the Philippines.
The bureau said that POGOs based in abroad cannot be considered as “nonresident foreign corporation” as it only applies to an overseas company not engaged in trade or business in the Philippines.
“RMC No. 102-2017 reiterates the recognition that online activity is sufficient to constitute doing business in the Philippines, thus, foreign corporation engaged in POGO is considered as Resident Foreign Corporation engaged in business in the Philippines and not a Nonresident Foreign Corporation,” the circular read.
The latest BIR circular also covers POGO agents as well as service providers licensed and authorized by Pagcor.
“For purposes of this Circular, all existing POGO Licensees prior to the issuance of this Circular shall be registered with the RDO [revenue district office] having jurisdiction over the place where the Head Office and/or branch or POGO Hub is located,” the BIR said. The circular was signed by BIR Commissioner Caesar R. Dulay.
“All foreign-based and Philippine-based operators, including those have already been issued an Offshore Gaming License by Pagcor are required to register with the Bureau of Internal Revenue,” the agency said.
POGOs can file their registration “on or before the commencement of business; or before payment of any tax due; or before or upon filing of any applicable tax return, statement or declaration as required by the Tax Code, as amended, whichever comes earlier,” the circular read.
Earlier, Jose S. Tria Jr. Pagcor’s POGO vice president said that they expect revenues from offshore casinos to double this year following the implementation of a new computer system allowing the government to monitor online betting outfits in real time.