Duterte signs law taxing POGOs
The Philippine Offshore Gaming Operations (POGO) are now required to pay revenue taxes and regulatory fees after President Rodrigo Duterte signed the Republic Act (RA) 11590 or an Act Taxing Philippine Offshore Gaming Operations.
RA 11590 is part of the priority legislative agenda that strictly regulates gambling in the country to generate additional revenue for the government post-pandemic.
Under the new law, POGOs will have to pay a five per cent gaming tax to the Bureau of Internal Revenue (BIR), while the Philippine Amusement and Gaming Corporation (PAGCOR) can also impose a regulatory fee that is two per cent of the gross gaming revenue.
In addition, PAGCOR-licensed, Philippine-based gaming firms must pay a 25% income tax for non-gaming revenues, and foreign employees are required to pay their income taxes.
The new law is forecasted to generate P15.73 billion (approximately US$310 million) in its first full year and P144.54 billion (approximately US$2.9 billion) over the next five years.
