A tax that was put into effect last year but delayed by a restraining order finally was implemented last week, causing more headaches for the Philippine Offshore Gaming Operators (POGOs). The brainchild of President Rodrigo Duterte, the plan imposes a 5 percent tax on gross gaming revenues for all POGOs, and introduces a 25 percent withholding fee from all of POGO employees who make more than $11,900 a year. To ensure that salaries are reported correctly, the government is immediately withholding $250 from all workers.
“All offshore gaming licensees and service providers shall submit to the Bureau of Internal Revenue the original copy of notarized contract of employment clearly stating therein the annual salary and other benefits and entitlements of the concerned alien,” the law says.
The 5 percent tax replaces any other levies and fees previously paid by POGOs. POGO service providers do not have to pay that tax, but are subject to other levies and fees.
A presidential spokesman says 60 percent of the revenue produced by the tax will be used for the Universal Health Care Act, 20 percent will go to the enhancement of health facilities and a final 20 percent for sustainable development goals set by the National Economic and Development Authority.
