BIR: 10 out of 60 POGO pay taxes

The Bureau of Internal Revenue (BIR) on Tuesday revealed that it only collects taxes from only 10 out of 60 registered Philippine Offshore Gaming Operations (POGO) operating in the country.

In the House Committee on Ways and Means hearing, the BIR said that 50 of the POGO are based in other countries though they have employees in the Philippines.

Committee chairperson Joey Salceda cited the Office of the Government Corporate Counsel’s (OGCC) report that showed BIR’s inability to tax POGO.

Lawmakers, meantime, said the government should instead consider halting POGO operations if they could not be properly taxed.

However, according to Salceda, both overseas-based and Philippine-based POGO can be taxed, as it was the goal of his House Bill 5267, which charges a five percent tax on their profit.

If approved, the government may acquire P45 billion in one year as the POGOs will also be charged with corporate income tax.

However, regulator Philippine Amusement and Gaming Corporation (PAGCOR) rejected the proposal for higher taxes.

“Due to the volatility of market there might be a risk that these operators might find jurisdiction which offers better taxes,” PAGCOR’s Jessa Fernandez said.

According to data from the PAGCOR and the Bureau of Immigration, there are 80,000 to 140,000 POGO employees in the country, which are mostly Chinese nationals.