DoF backs proposed POGO tax
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Tue, 22 Oct 2019 16:21:11 +0000
THE Department of Finance (DoF) on Tuesday expressed support for a plan to impose a franchise tax on Philippines online gaming operators (POGOs).
In a statement, Finance Secretary Carlos Dominguez 3rd said his department “supports in principle” a plan by Albay Rep. Joey Salceda to file a bill seeking to impose a 5-percent franchise tax on revenues generated by POGOs and their service providers.
Dominguez is yet to see a copy of Salceda’s proposal, which also aims to register POGOs as resident corporations as the basis for taxability.
“I haven’t seen the exact proposal, but in general, I think that’s a good idea. But they are already paying a fee…for that,” the Finance chief was quoted as saying.
He pointed out that under existing revenue rules, POGOs are already subject to a 5-percent franchise tax.
The DoF, quoting the Bureau of Internal Revenue’s Revenue Memorandum Circular 102-2017, explained that “the entire gross gaming receipts/earnings or the agreed or predetermined minimum monthly revenues/income from gaming operations under existing rules, whichever is higher, shall be subject to a franchise tax of 5 percent, in lieu of all kind of taxes, levies, fees or assessments of any kind, nature or description.”
Salceda is also proposing a gaming tax of $10,000 a month per table for a live set-up casino and a monthly $5,000 gaming tax for random number generator-based games, besides the 5-percent franchise tax.
He also plans to impose a $1,000 presumptive corporate income tax per seat for POGOs.
A Finance panel is studying Salceda’s proposal.