BIR orders e-sabong operators to pay franchise tax (Sabong News)
Author
Jun Ramirez
Date
MARCH 13 2022
The Bureau of Internal Revenue (BIR) said gross earnings of online cockfighting operators are subject to five percent franchise tax.
“The tax is separate from the five percent franchise tax collected by the Philippine Amusement and Gaming Corporation (PAGCOR) from e-Sabong licensee,” said BIR Commissioner Caesar R. Dulay in Revenue Memorandum Circular 25-2022.
He added “e-sabong operators shall remit the tax directly to the BIR.”
The BIR chief issued the clarification on the taxability of the game after Atong Ang, one of the biggest names in online cockfighting disclosed to the Senate panel investigating the disappearance of cockfight players that the industry generates daily income of up to P2 billion.
Dulay also said that other players of the game like promoters, coordinators, owners of cockpit arenas and their workers are also subject to regular income tax, value-added, or percentage taxes.
Earnings of e-sabong operators not related to the license issued by PAGCOR like promotion, advertisement, sale of goods and services are also covered by regular taxation.
Concerning this requirement, Dulay asked this group of taxpayers to register with the revenue district office which has jurisdiction over their business, or residence.
