POGO tax scheme soon out
The full force of the country’s tax laws should soon hit the so-called Philippine Offshore Gaming Operators (POGO) and their full cooperation is expected, the Bureau of Internal Revenue (BIR) said.
BIR Commissioner Caesar Dulay said the initiative is ongoing and will help ensure full POGO compliance with the country’s tax laws.
“The only requirement is to comply with the law (and) to pay the correct tax,” Dulay said.
Also, the BIR chief said the BIR will not think twice about shutting down POGO operations should they remain non-compliant.
“If they don’t pay and we see that they have not registered with the BIR, we’ll close them,” Dulay said.
“Some have been licensed by PAGCOR (Philippine Amusement and Gaming Corp.), but others remain unlicensed. So, we sent out letters after checking our integrated tax system data. If they are not paying the correct tax, we write them a letter,” he said.
Under the implemented tax guidelines, foreign workers employed in POGO and its service providers are required to enroll and have their own personal tax identification number when applying for documents such as the special working permit and the alien employment permit/provisional work permit.
Also, regulation requires POGO workers to secure a “no derogatory record/ information” from the National Intelligence and Coordinating Agency and the National Bureau of Investigation.
BIR Deputy Commissioner Arnel Guballa dismissed concerns raised by the Chinese Embassy on online casinos that cater to players in China, which is illegal under their jurisdiction.
“It’s from PAGCOR, let them address the issue to the Chinese Embassy. In the Philippines, income from whatever source, legal or illegal, is taxable,” Guballa said.
The government has been relentless in the pursuit to tax and regulate the POGO industry given substantial revenues lost to non-compliant firms.
Regulation requires POGO workers to secure a “no derogatory record/ information” from the National Intelligence and Coordinating Agency and the National Bureau of Investigation.