Many POGOs were “not likely” to continue business without COVID-19 vaccine, according to BIR officials.
Bureau of Internal Revenue (BIR) officials disclosed that a lot of Philippine Offshore Gaming Operators (POGOs) were “not likely” to continue its business unless a COVID-19 vaccine became available and the tax rates were reduced.
This, as these officials said that only about 15 POGOs were still operating from the previous total of 63 because of low revenues.
In addition, the workforce was also cut by about 70% in order to comply with the government’s pandemic protocol.
In a report on Manila Bulletin, BIR sources said that a lot of Chinese workers were not allowed to return to the Philippines after celebrating their new year in China last February because of the health crisis.
The growth of the industry was reduced by the recent BIR regulations revising the tax rates, which described by POGO lawyers as “unreasonable”.
Revenue Regulations 30-2020 required online POGOs to remit to the Bureau of Internal Revenue 5% of the gross bets as franchise tax, or the minimum guarantee fee, whichever was higher.
READ ALSO: BIR Releases Strict Tax Guidelines For Philippine Offshore Gaming Operations
The regulations also prescribed the remittance of 2% of the gross winnings to the Philippine Amusement and Gaming Corporation (PAGCOR) as license fee.
In addition, they’re also mandated to withhold and remit to the Bureau of Internal Revenue 15% of the salaries of their foreign workers as an income tax.
POGOs were also subject to pay income tax and value-added tax (VAT) on non-gaming activities such as sale of goods and services.
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