BIR slaps franchise tax to e-sabong, casino operators (Sabong News)
Author
Jun Ramirez
Date
MARCH 31 2022
The Bureau of Internal Revenue (BIR) has slapped casino and e-sabong (online cockfighting) operators as well as other licensees of the Philippine Amusement and Gaming Corporation (PAGCOR) with five percent franchise tax on their income from operations.
BIR Commissioner Caesar R. Dulay stressed that the tax is separate from license fees gaming house owners paid to PAGCOR.
“The regulatory fees paid by contractees to PAGCOR is different and distinct from the five percent franchise tax payable to the BIR,” Dulay said, citing Revenue Memorandum Circular No.32-2022.
Dulay explained that the license fees paid to PAGCOR do not include the franchise tax to be paid to the national government under Presidential Decree No. 1869 which consolidated the powers of the government-owned gaming entity.
He asked PAGCOR licensees to remit directly the tax to the revenue district office where they are registered.
He added that income of licensees from related services, or non-gaming operations, like restaurant are subject to regular corporate income tax, value-added tax and other applicable taxes prescribed by the Tax Code.
PAGCOR itself remits to the BIR five percent franchise tax of it’s income derived from operations in lieu of other taxes. Income from other related services like sale of goods are also subject to taxation.
