Regulators clarified that online casino service providers do not qualify for any tax incentives despite being classified by the government as business process outsourcing (BPO) companies. Citing BIR regulations, Finance Secretary Carlos Dominguez 3rd said POGO service providers cannot use their BPO status against paying taxes being imposed by the government. BIR Deputy Commissioner Arnel Guballa, meanwhile, mentioned that tax incentives are privileges given solely by Congress, and not associated with industry classification. On the other hand, Jose Tria, Pagcor assistant vice president for offshore gaming and licensing department said POGOs are treated like other gambling entities, and are subject to franchise tax, value-added tax (VAT), and corporate income tax. “What we are referring to as BPOs are the POGO service providers, not the POGO operators,” he added.

Source: Manila Times May 05, 2020 07:30 UTC