Abo and Penaranda Law firm

THE THREE (3) TYPES OF OFFSHORE GAMING LICENSES?

Like any other person or entity doing business in the Philippines, Philippine Offshore Gaming Operators (POGOs) are subjected to Philippine taxes.
offshore gaming

What are the three (3) types of Offshore Gaming licenses?

A. E-casino – refers to an OGL for the operation of Live Casino Games or Random Number Generator (RNG) based games.

B. Sportsbetting – refers to an OGL for the acceptance and/or facilitation of wagers in the operation of predicting the outcome and results of a sporting event.

C. Sportsbetting on Regulated Wagering Events

WHAT ARE THE TAXES THAT Philippine Offshore Gaming Operator (POGO) ARE SUBJECTED TO?

Like any other person or entity doing business in the Philippines, POGOs are subjected to Philippine taxes. Pursuant Bureau of Internal Revenue (BIR) Revenue Memorandum Circular No. 102-2017 POGOs are subjected to the following taxes:

1. INCOME TAX

  • Income from Gaming Operations, which refer to income or earning realized or derived from operating of gambling casinos, gambling clubs and other similar recreation and amusement places and gambling pools.
  • Income from Other Related Services, which refers to income or earning realized or derived not from gaming operations but from such other necessary and related services, shows and entertainment.

2. VALUE-ADDED TAX

Income from Other Related Services from non-gaming operations shall be subject to normal income tax, value- added tax, and other applicable taxes, as may be deemed appropriate.

3. FRANCHISE TAX

  • The entire gross gaming receipts/earnings or the agreed or pre-determined minimum monthly revenues/income from Gaming Operations under existing rules, whichever is higher, shall be subject to a franchise tax of five percent (5%), in lieu of all kinds taxes, levies, fees or assessments of any kind, nature or description, This income is therefore exempt from any kind of tax, income or otherwise, as well as fees, charges or levies of whatever nature, whether national or local. • A Licensee deriving income from both gaming operations and from other related services shall be subjected to 5% franchise tax on its gaming revenues and normal income tax, value-added tax and other applicable taxes on its non-gaming revenues.
  • An Other Entity, specifically including the gaming agent, Service Provider and Gaming Support Provider who is also a POGO Licensee shall be taxed 5% Franchise tax on its gaming activities and subject to normal tax rate and other appropriate taxes on its non-gaming operations.

4. WITHHOLDING TAXES

  • Income payments made by POGO Licensees or any other business entity licensed or authorized by PAGCOR for all their purchases of goods and services shall be subject to withholding taxes as may be appropriate and applicable.
  • Compensation, fees, and commissions or any other form of remuneration as a result of services rendered to POGO Licensees or any other business entity licensed by PAGCOR shall be subject to applicable withholding taxes under existing revenue laws and regulations.

Written by: Atty. Jon Dominic Peñaranda

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