President Duterte has certified as urgent Senate Bill 2232, entitled “An Act Taxing Philippine Offshore Gaming Operations, in a move that was quickly lauded by Albay Rep. Joey Salceda, chairman of the House ways and means committee.
“Today, Presidential Spokesperson Harry Roque confirmed that the President indeed certified the bill as urgent. This means that the Senate can approve it on 2nd and 3rd reading on the same day,” Salceda said in a statement.
The Senate bill is the counterpart of Salceda’s House Bill 5777 which the House of Representatives approved in February.
In the House version, POGOs will be subject to a five percent tax on gross gaming receipts. Their service providers will be subject to regular taxes. Non-resident employees of both will be subject to a withholding tax of 25 percent of gross income, with a presumed income of P600,000.
The Senate version adopted these rates in its Committee Report.
Salceda’s proposed language, which the Senate adopted, also establishes a system of exchange of information betweenthe Department of Labor and Employment, the Bureau of Immigration, and the Bureau of Internal Revenue to ensure compliance with all laws, incluing taxes.
The Philippine Amusement and Gaming Corporation and special economic zones are also authorized to charge two percent of gross gaming receipts as regulatory fee.
Salceda said the government may generate P121.9 billion revenue from the measure over the next four years.