The Philippine Offshore Gaming Operators (POGOs) will now be subjected to a five per cent tax on their gross gaming revenue following the release of Republic Act 11590 by the Bureau of Internal Revenue (BIR).
Under the new act, POGOs that are operating in the country will be penalized should they fail to register, pay or leave underpaid taxes.
Aside from new tax rules, foreign workers at offshore gaming operators will also be asked to pay a 25% withholding tax on gross income. Employees without a tax identification number will have to pay a P20,000 (US$397) fine.
In a statement, the BIR said that they can request for the revocation of the licenses of POGO entities or temporarily ban them in the country should they violate these conditions.
The Department of Finance (DOF) is expecting the taxes of the POGO sector to reach P76.2 billion (US$1.5 billion) from 2022 to 2023
About 60% of this amount will be used to fund the Universal Health Care Act, while 20% will be allotted to improve public healthcare, and another 20% will be utilized for sustainable development programs.