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ONLINE GAMES The Philippine government wants to better collect taxes from POGOs. Photo by Jeff Digma / Rappler
MANILA, Philippines – Philippine offshore gaming operators (POGO) will have to pay the correct taxes before they are allowed to resume operations during the quarantine period, the Department of Finance (DOF) said Saturday, May 9.
The DOF said in a statement that this is part of the “strict” set of rules of the Internal Revenue Office (BIR) on reopening POGOs and their service providers.
“The Internal Revenue Office (BIR) ensures that Philippine offshore gaming operators (POGO) and their respective service providers are properly registered and pay the correct amount of income taxes and franchise fees to the government before to be allowed to resume operations during the quarantine period, “the DOF said.
A requirement is that POGO licensees and operators must show proof that they have settled all of their 2019 tax obligations, including franchise taxes.
The BIR also said that the POGOs must have already paid their tax withholdings from January to April 2020, as well as the first quarter payments of the 2020 franchise tax.
The same is required for POGO service providers, including that they should have already paid 25% of the final withholding tax owed by their foreign employees.
“Tax compliant POGO service providers would not receive tax exemptions from the BIR if their POGO operators or licensees do not comply with the new office requirements,” the DOF said.
The DOF also said that POGOs and their service providers must observe government-established health and safety protocols to prevent the spread of the coronavirus.
According to the Guidelines and requirements issued by the BIR POGO Working Group led by the Deputy Commissioner of Revenue Arnel Guballa, “failure to comply with any of the (requirements) will result in the denial of the issuance of a BIR Authorization for the resumption of operations”.
POGOs and their service providers must also “strictly adhere to government safety and health protocols, such as limited shift operations, transportation services for employees, regular controls of body temperature and disinfection in the workplace, social distancing and wearing masks, among other measures to prevent transmission of the new coronavirus, “said DOF.
The BIR guidelines were issued on May 6.
The PAGCOR Accredited Service Provider Association (ASPAP), a POGO service provider organization, said in a statement Saturday that the government has its “unequivocal commitment to settle the appropriate tax obligations.”
“However, like any legitimate business venture, our association hopes that the agencies involved can implement clearer tax guidelines and regulations that the industry will reference in its financial forecasts and plans.” ASPAP said.
The reopening of POGOs amid the pandemic sparked public uproar, counting lawmakers among its critics. Senate investigations earlier this year exposed the POGO’s links to crime.
According to the current laws, there is no prohibition against the POGO, only the statutes that prohibit the games of chance of the so-called poor such as jueteng, jai alai, heads and tails (heads or tails), and the like.
Senator Joel Villanueva also previously warned that POGOs have “enormous potential to spread the word [coronavirus] disease because there are several workers who work in a closed area and reside in high-rise condos. ” – Rappler.com
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