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Philippines: Same tax treatment for all online gambling
MANILA, Philippines — The tax treatment for online gambling, whether done onshore or offshore, is the same after the Philippine Amusement and Gaming Corp. (PAGCOR) gave casino operators the green light to accept bets online, according to the Department of Finance.
DOF Secretary Carlos Dominguez issued the clarification after Bloomberg reported that the applications of City of Dreams Manila, Okada Manila, Resorts World Manila and Solaire Resort and Casino to take online bets have been approved by PAGCOR.
“The tax treatment is the same for online gambling, whether onshore or offshore, for as long as the operator is a licensee of PAGCOR,” Dominguez said.
Casino operators have been experiencing significant losses due to the imposition of lockdowns to curb the spread of the virus.
Casinos were allowed to resume operation at 30 percent capacity in August as the economy partially reopened in June when the National Capital Region (NCR) shifted to general community quarantine.
The earnings of PAGCOR plunged by 97 percent to P132.67 million from January to September compared to P4.97 billion in the same period last year as its income from gaming operations suffered following the temporary suspension of casino operations due to the global health crisis.
Its income from gaming operations likewise plunged by almost 60 percent to P22.33 billion from P55.77 billion in 2019.
Despite the decline, PAGCOR’s profit saw a recovery coming from a net loss of P1.6 billion in the first half.
According to PAGCOR, income from licensed casinos during the nine-month period amounted to P8.44 billion, 60 percent lower than the P21.11 billion last year. Income collected from offshore gaming operators likewise declined by 6.14 percent to P3.76 billion.
PAGCOR said it remitted P11.72 billion of its revenues to the government in the form of gaming taxes and contributions.
In particular, P1.12 billion was paid as franchise tax. A total of P45 million also went to the Dangerous Drugs Board.
Some P10.56 billion also went to the National Treasury as dividends, pursuant to the Government Owned and Controlled Corporations Dividend Law. The law provides that state corporations are mandated to remit 50 percent of their gross income to the national government.
PAGCOR’s total expenses reached P15.91 billion, 35 percent lower than last year’s P24.38 billion.
About P9.93 billion of the amount came in the form of operating expenses, while spending for corporate social responsibility projects reached P5.45 billion.
Source: https://www.philstar.com/business/2020/11/05/2054583/same-tax-treatment-all-online-gambling