The Philippines gaming regulator is looking to set a tax rate of 42.5 percent on all online gaming revenue earned by land-based operators under what will be known as the “PIGO” (Philippines Inland Gaming Operator) license scheme, according to a source close to the matter.
On top of this, operators will pay a 5 percent gaming systems fee to the regulator, meaning that they themselves will keep only around 28 percent of revenue gained from their online gambling operations.
The source stressed that this may not be the final computations, but will be “very close” to what the regulator will end up charging land-based operators.
If true, that would spell one of the highest online gambling tax rates in Asia.
Currently, Philippines Offshore Gaming Operators (POGO) are required to pay a franchise tax of 5 percent on turnover, in lieu of all kinds of tax – an amount that they’ve had trouble collecting from operators as it is.
Earlier this year, the Philippines senate floated a measure that proposes a 30 percent income tax rate on POGO gross income.
At the time, Senate President Pro Tempore Ralph G. Recto said the tax measures would address confusion on whether POGOs should be taxed. However, this conversation has not resurfaced since.
Philippine Amusement and Gaming Corp (PAGCOR) proposal to allow land-based casinos to accept bets online has been seen as a way to mitigate losses and refill state coffers as a result of the economic impact of Covid-19.
