MONDAY I JANUARY ,2020
POGO tax collections reach P6,42B in 2O19
By MARY GRACE PADIN
Tax collections from Philippine
ffshore gaming operators (POCO)
nd their service providers rose to
'6.42 billion last year amid the gov-
rnment's strengthened crackdown
gainst delinquent companies,
ccording to the Department of
inance (DOF).
According to the latest data from
re DOF, the government saw a P4.04
illiory or 169-percent, iump in tax
rllections from the POGO industry
r 2019 from P2.38 billion in 2018.
Tltie DOF said the higher tax take
'as d result of the government's
lmpaign against offshore gaming
perators'and service providers
.. t;.
which have evaded paying taxes,
including income taxes that should
be imposed-on foreign nationalq
working in these firms.
Broken down, the Bureau of In-
ternal Revenue (BIR) said P5.13 bil-
lion of the total tax collectio4s came
from withholding taxes, P644.07
million from income taxes, while
the remaining P91.13 million came
from value added tax and percent-
age tax collections.
Collections from documentary
stamp taxes reached P81.11 mil-
lion, while other taxes amounted
to P469.13 million.
The BIR said it also issued 170
notices to erring oflshore gaming
operators and service providers
last year, corresponding to a total of
P27.35 billion in unpaid tax liabili-
ties from gaming operators.
In an interview with reporters,
BIR deputy commissioner Arnel
Guballa said more offshore gaming
firms Have expressed their commit-
ment tg comply wjth tax laws in the
face oflLhe government's continued
efforts against delinquent offshore
gaming operators.
However, Cuballa said there is
a challenge in capturing all foreign
POGO employees into the tax net as
they only work in the country for a
short time before going back to their
home countries.
"We heard from sources that their
employees cdme and go,"
o Pdqe '@/
the BIR official said.
Guballa also said that the in-
creased crackdown against offshore
gaming operators did not discour-
age some players from conducting
business in the Philippines.
. "Others say they want to regis-
tet they want to secure a licence,"
he said.
There are currently 60 offshore
gaming operators that are licensed by
PAGCOR. Howeve4 PAGCOR earlier
imposed a moratorium on new licens-
es until such time that issues plaguing
the industry are addressed.
The BIR is also monitoring
218 offshore.gaming operator ser-
vice providers in the country,
are estimated to employ about
108,914 foreign workers.
Last year, the BIR, through its
Task Force POGO, temporarily
shuttered the operations oflfour
offshore gaming service providers.
The DOF estimates thatthe govem-
ment would be able to generate about
Pz billion in additional revenues a
month from the withholding tax of
foreign workers in the POGO sector. ,
Finance Secretary Carlos Domin-t
guez has expressed support for a
proposal ofAlbay Rep. Joey Salceda
to impose additional taxes on the
offshore gaming industry.