Existing laws prevent the government from collecting franchise taxes from POGOs

Lawyers of iGaming companies hope to negotiate with the BIR to resolve the issue

Due to the dispute between POGOs and the Philippines (Bureau of Internal Revenue) BIR on offshore gaming franchise tax issues, more than 200 Philippine POGOs are still in the state of being resumed. POGO’s legal team said the resumption of POGO operations will be postponed.

The deputy Commissioner of BIR Operations Group, Arnel SD. Guballa said at the "Laging Handa" public hearing that lawyers of iGaming companies hope to negotiate with the BIR again to resolve the issue.

 

Arnel SD. Guballa said that BIR will issue a new statement because they noticed that there is no clear "Tax Law" in the Philippines to specify the position of iGaming industry.

 

The main argument from POGOs is that they are an offshore company and therefore should not bear the taxes levied by the Philippine government.

However, Arnel SD. Guballa said that BIR will issue a new statement because they noticed that there is no clear "Tax Law" in the Philippines to specify the position of iGaming industry.

He emphasised that the business should be taxed when it receives income and profits in the country. The excise tax of POGOs is not income taxes, but based on the company’s net assets or capital.

Arnel SD. Guballa also said that the rest of the issues for resuming iGaming companies have been resolved, such as income payment and final withholding tax.

The regulator of Philippines has already required all POGOs to obtain tax clearance from BIR before allowing BGO to restart.

If you want to re-live the SiGMA Digital experience go to our Youtube channels – SiGMA – World’s iGaming Festival and AIBC Summit!

 

 

 

Related Posts