PHILSTAR
THE SENATE may also pass a measure to tax Filipino offshore gaming operators (POGOs) after the House of Representatives approved a third reading bill on the taxation of foreign POGO employees.
Senate President Vicente C. Sotto III told BusinessWorld on Tuesday in a Viber message that the Senate would “most likely” also pass a law to tax POGO workers.
Senate President Pro Tempore Ralph G. Recto said he had tabled a bill that would impose a 30% tax rate on the POGO industry.
“We can certainly reconcile both bills,” said Recto in a text message on Tuesday.
“The government needs all the tax / revenue it can collect from industry,” he added.
Senator Juan Edgardo M. Angara, vice chairman of the Ways and Means committee, said he “personally supports a move that will put the industry on a clearer tax footing as there is some debate about what taxes are due.”
“It is better to have a regulated and regulated gaming industry than one that exists underground,” he said in a text message.
Mr. Recto filed Senate Bill No. 1295 in January 2020, aimed at “establishing the tax system for POGOs” to be incorporated into the National Internal Revenue Code (NIRC).
As part of the pending action at committee level, Filipino and foreign POGOs are subject to an income tax rate of 30%.
The measure is also intended to levy a franchise tax of 5% of gross income from offshore gaming transactions.
Mr. Recto said in his statement that “the nature of the nature of his business creates confusion in the enforcement of our existing tax laws”.
The inclusion in the tax code “is necessary to dispel doubts and avoid confusion as to whether or not POGOs are taxable in our jurisdiction,” the note says.
The House of Representatives on Monday approved House Bill (HB) No. 5777, which changed the NIRC to taxpayers involved in POGOs.
Under the law, foreigners employed by offshore gambling operators in the Philippines are required to pay final withholding tax at 25% of their income.
They also want to impose a 5% excise tax on gross receipts or revenue from POGO gambling businesses.
The House of Representatives announced its approval of HB 5777 to the Senate on Tuesday. – Vann Marlo M. Villegas