MANILA, Philippines – Government cash collection in the gambling sector is declining as operators close their outlets and mostly Chinese workers flee the new coronavirus in the Philippines, the country most affected by the COVID-19 pathogen in the southeast. Asia.
But the proceeds were lower than before the coronavirus pandemic, said deputy revenue commissioner Arnel Guballa.
“It remains the same, the Pogos are at their final gates because they are afraid of COVID-19,” said Guballa, who heads the BIR Pogo working group.
“Many Chinese worker visas have been cancelled and returned to China because there are many cases in COVID-19 in the Philippines,” he said.
The Philippine Amusement and Gaming Corp. (Pagcor) website, which regulates the Pogo industry, had indexed 55 registered operators until September 8, up from 60 at the beginning of the year.
Of the legal Pogos, 29 had been legal to resume operations as of September 8, according to data from Pagcor.
Previously, it was reported that a couple in Pogos had closed and left the Philippines due to tax problems.
In May, when the government began alleviating coronavirus blockades and enacted minimum fitness standards, the IBRD issued regulations requiring Pogos and its service providers to pay their taxes first before they can resume operations.
Pagcor’s knowledge shows how many Pogos are abroad.
In July, the BIR reiterated that the tax regulations it had issued in 2017 imposed a deductible tax on all Pogos, here or abroad.
Revenue Commissioner César Dulay stated at the time that “Pogo licensees or operators are not appraised and do not pay income source tax and other taxes because IBRD 102-2017 makes it clear that of those taxes, they are only topics to the deductible tax. “
“Only Pogo service providers are subject to normal taxes such as source of income tax and value added tax (VAT). However, both Pogo operators and service providers whose workers obtain a source Reimbursement income will have to withhold and pay the taxes they will have to pay, “said Dulay.
“Tax regulations stipulate that the source of reimbursement of foreigners’ income will have to be withheld at the 25% source. However, instead of paying the final source withholding, most only return the withholding tax on the reimbursement, which is based on decreasing rates based on the total amount of each employee’s source of income, “he said.
Licensees employ service providers in the Philippines whose staff deals directly with their customers, online players abroad, basically in China, where gambling is illegal.
Pagcor’s most recent knowledge showed that, as of September 8, 99 accredited local gaming agents and services had been allowed to resume operations.
Prior to the coronavirus outbreak, there were up to 218 service providers employing between 130,000 and 150,000 people, at least three-quarters of whom were foreigners, most of whom were Chinese.
The BIR alleviates some fiscal needs before Pogos simply resumes operations.
An intensified BIR crusade against tax evasors resulted in 6. 4 billion pesos in tax collection last year.
Prior to 2019, Pogo’s tax gain was only around one billion pesos a year, Dominguez said.
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