The Bureau of Internal Revenue (BIR) has turned down the proposal of the Philippine Offshore Gaming Operators (POGOs) seeking to lower the income tax payment of their more than 138,000 alien employes.
Instead, Revenue Deputy Commissioner for Operations Arnel Guballa threatened to padlock POGO operations that do not pay correct taxes as ordered by Finance Secretary Carlos Dominguez.
He said POGOs’ proposal is not feasible because the Tax Code requires foreign nationals working here to remit 25 percent of their gross income as the final withholding tax.
Online gambling operators have suggested to subject the compensation received by their workers at par with the schedule for salaried individual taxpayers prescribed by the Tax Reform for Acceleration and Inclusion (TRAIN) Law.
The law exempts the first P250,000 income from taxation.
Guballa said the online gaming workers are not entitled to any tax incentives, noting that they entered the country disguised as tourists.
He said lowering the 25 percent on the gross income of these foreign workers will drastically reduce the P2 billion monthly goal from the source.
Recently, the BIR closed one of the biggest POGOs with branches in Metro Manila and Subic in Zambales for non-registration and payment of income tax of their employes.
But the Great Empire Gaming and Amusement Corporation was allowed to resume operations five days later after the operator agreed to pay P1.3 billion in back taxes, making an initial payment of P250 million. (Jun Ramirez)
