BuffhessMirnor
October 23, 2Ol9
Proposed 5ohfranc ise tax
on Pogos gets DOF support
HE proposed imposition of an
additional S-percent franchise tax
.l- on revenues generated by Philippine
Qffshore Gaming Operators (Pogos) has
ghined support from the Department of
Finance (DOF).
nF-
1I
The proposal was earlier submifled
b!' Rep. Jose Ma. Clemente S. Salceda,
chairman of the House Ways and Means
Committee.
Accordingto Finance SecretaryCarlos
G. Dominguez III, the DOF backed the
propp!41 e;rzen if there's an exisliqg rev-
enue rule that already.iubject Pogbsto a
5?'€ident franchise t aiongross recdptd.,
"Yes, I have not seen the exact pro-
posal but, in general, yes I think ihat
is a good idea," Dominguez was quoted
in a statement as saying. "But they are
already paying a fee; a fee for that."
Revenue Memorandum Circular
102-2017 by the Bureau of Internal
Revenue (BIR) subjects "the entire
4 pAy-a6l
'Wednesday,
agreed or pre-determined minimum
monthly revenues from gaming opera-
t ions under existing rules, whicheveris
higher, ...to a franchise ta>< of5 percent
in lieu of all kind of taxes, levies, fees
or assessments of any kind, naiure or
description."
Butaside from the franchise tax, Sal-
ceda said he is also proposing a gaming
tax of $10,000 a month per table for a
live setup casino and a $5,000 a month
gaming tax for random number genera-
tor-based garnes.
The proposal also aims to register
Pogos as resident corporarions as basis
for taxability.
He also wants government to impose
at least $1,000 presumptive corporate
income taxper seat for Pogos.
The BIRhas reportedithas so far.col-
lected P1.63 billion in withholding taxes
E
from Pogos and their service providers
covering the period January to August.
These online gaming firms paid P175
million in withholding taxes in 2017 and
P579 million in 2018.
BIR Deputy Commissioner Arnel SD.
Guballa said the agency has so far listed
218 Pogos and their service provi{ers
with a total of108,914 foreign workers.
The BIR earlierorderedthe temporary
closure of the operations of the Great
Empire Gaming and Amusement Corp.
(Gegac) on September 25 f9r its failure
to pay the correct amount oftaxes.
G egac initially paid P250 millionand
issuedan ndertal<ing to settle remain
u
ingtaxarrears of P1.050billion in three
separate monthlypayments covered by
postdated checks. After that, the BIR
allowed Gegac to resume operations
last September 27. !ov: Moya