House approves bill taxing persons engaged in POGOs

MANILA — A measure imposing a tax on persons engaged in Philippine Offshore Gaming Operations (POGO) hurdled third and final reading approval at the House of Representatives.

During Monday’s plenary session, a total of 198 lawmakers voted to approve House Bill 5777, which seeks to amend Section 25 (Tax on Nonresident Alien Individual), Section 27 (Rates of Income Tax on Domestic Corporations) and Section 108 (Value-added Tax on Sale of Services and Use or Lease of Properties) of the National Internal Revenue Code (NIRC).

A total of 13 lawmakers voted against the bill, while two abstained from voting.

The bill seeks to imposes income tax on alien individuals employed by offshore gaming licensees an amount equivalent to 25 percent of the salaries, wages, annuities, compensation, remuneration and other emoluments.

The bill also proposes to add a new Section 125-A in the NIRC.

The new section defines offshore gaming licensee, which may be a Philippine-based operator or an offshore-based operator, to clarify its taxability.

It also imposes an excise tax equivalent to 5 percent of the gross revenue or receipts from gaming operations and other similar related activities on all offshore gaming operators.

The services rendered by accredited service providers to offshore gaming licensees in the country shall be subject to zero percent value-added tax rate.

The ancillary services offered by these service providers may include customer and technical relations and support information technology, gaming software, data provision, payment solutions, and live studio and streaming services.