MANILA, Philippines – President Rodrigo Duterte has signed into law a bill seeking to set up a tax regime for Philippine Offshore Gaming Operators (POGO), Malacañang said on Thursday.
Presidential Spokesperson Harry Roque said Duterte signed the Republic Act (RA) 11590 on Wednesday.
“Bahagi ito sa ating mahigpit na pagri-regulate ng lahat ng klase ng gambling at pagbabawal ng iligal na sugal,” he said in a Palace briefing.
RA 11590 states that foreigners working in POGOs regardless of term and class of working or employment permit or visa are required to pay a final withholding tax of 25 percent on their gross income.
The law also imposes 5 percent gaming tax on services rendered by offshore gaming licensees.
Sixty percent of the total revenue collected from the offshore gambling tax will be used for the implementation of the Universal Healthcare Law while 20 percent each will be allocated to the Health Facilities Enhancement Program, and the attainment of the country’s Sustainable Development Goals (SDG) to be determined by the National Economic and Development Authority.
The government suspended POGOs and other non-essential businesses in 2020 when it imposed COVID-19 lockdowns.
POGOs will not be allowed to reopen unless they settle their tax liabilities.
The government is expecting to collect more than P100 billion in revenues from POGOs in the next four years.
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