Friday, October 30, 2020
 
Home Business Top Business P6.42B collected from POGOs in 2019

P6.42B collected from POGOs in 2019

 

Tax collections from online gaming operators and their service providers rose to P6.42 billion last year, the Department of Finance (DoF) reported on Sunday.

In a statement, the Finance department said the amount was 169.74-percent higher than the collection of P2.38 billion from the Philippine offshore gaming operators (POGO) industry in the previous year.

Broken down, the Bureau of Internal Revenue (BIR) collected P5.13 billion in withholding taxes, P644.07 million in income taxes, P91.13 million in value-added taxes and percentage taxes, P81.11 million in documentary stamp taxes, and P469.13 million in other taxes from POGOs, it added.

 


“This increased tax take was the result of a sustained campaign spearheaded by Finance Secretary Carlos Dominguez 3rd to crack down on errant POGOs and their service providers that have eschewed tax payments, including the income taxes that the government should be collecting from foreign nationals working for these firms,” the DoF underscored.

It also said the bureau issued a total of 170 notices last year to collect P27.35 billion in tax liabilities from errant POGOs.

The BIR has a collection target of P2 billion a month from withholding taxes of POGO workers. With this amount, taxes to be collected from the industry would hit P24 billion a year — a revenue source that was non-existent four or five years ago, before President Rodrigo Duterte handed over control of POGO companies to the Philippine Amusement and Gaming Corp.

To date, the tax agency has shuttered the operations of at least four companies operating as POGO service providers, but have either failed to register their operations as such, allowing them to evade paying the correct taxes to the government, or are registered but not paying the correct amount of taxes.

Dominguez also assured there will be no letup in the ongoing crackdown as the BIR further steps up its campaign against errant POGOs in 2020.

“Basically, we’re going hard against people who are evading taxes,” he added.

To further firm up the government’s campaign against delinquent POGOs, the Finance chief said he is supporting in principle a plan by Albay Rep. Joey Salceda to impose additional taxes on the online gaming industry.

These taxes include a 5-percent franchise tax, and a 15-percent tax on the salary of any individual who is a permanent resident of a foreign country and employed by a licensed offshore gaming enterprise.

On Dominguez’s instructions, the BIR is also working with the Department of Labor and Employment in developing an interagency database of foreigners working in the country to effectively monitor them and ensure that they pay the correct amount of taxes to the government.

MAYVELIN U. CARABALLO

 

Group lauds DTI’s new policy on cement labeling

LOKAL Muna-Consumer Protection Watch (LMCPW) on Friday lauded the Department of Trade and Industry (DTI) for issuing a new policy on the labeling of...

BSP projects Oct inflation rate at 2.3%

THE country’s headline inflation could have hit 2.3 percent this month, according to the Bangko Sentral ng Pilipinas (BSP). In a statement on Friday, central...

Armed Forces to transport over 4,000 national ID registration kits to target areas

THE Armed Forces of the Philippines (AFP) will assist in transporting more than 4,000 National ID registration kits to 655 cities and municipalities in...

‘Rolly’ intensifies, to make landfall in Aurora-Quezon on Sunday–Pagasa

TYPHOON "Rolly" maintained its strength as it heads to the Aurora-Quezon area where it is expected to make landfall either on Sunday evening or...

P77.98B released for Covid response under Bayanihan 2

THE government has released a total of P77.98 billion to various agencies and departments for their coronavirus disease 2019 (Covid-19) pandemic response programs under...

Weather

Today's Front Page

TRY OUR DIGITAL EDITION
FREE FOR 30 DAYS

ALREADY A SUBSCRIBER?