After reading, Gaming Tax On Services Rendered By Offshore Gaming Licensee, read also Taxing Foreign Individuals Employed by an Offshore Gaming Licensee and Service Providers
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The entire gross gaming revenue or the agreed predetermined minimum monthly revenue shall be subject to gaming tax equivalent to five percent (5%)
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The gaming tax shall be directly remitted to the Bureau of Internal Revenue not later than the 20th following the end of each month
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The Philippine Amusement and Gaming Corporation may impose regulatory fees on offshore gaming licensees
Republic Act No. 11590 or An Act Taxing Philippine Offshore Gaming Operations provides for the tax rate of gaming revenue or receipts with respect to gaming income.
What is the tax rate of gaming revenue or receipts with respect to gaming income?
The law says:
The entire gross gaming revenue or receipts or the agreed predetermined minimum monthly revenue or receipts from gaming, whichever is higher, shall be levied, assessed, and collected a gaming tax equivalent to five percent (5%), in lieu of all other direct and indirect internal revenue taxes and local taxes, with respect to gaming income. The gaming tax shall be directly remitted to the Bureau of Internal Revenue not later than the 201th day following the end of each month.
In addition, the Philippine Amusement and Gaming Corporation or any special economic zone authority or tourism zone authority or freeport authority may impose regulatory fees on offshore gaming licensees which shall not cumulatively exceed two percent (2%) of the gross gaming and similar related activities of all offshore gaming licensees or a predetermined minimum guaranteed fee whichever is higher. Note that gaming revenue or receipts shall mean gross wagers less payouts.
How may the gross gaming revenues or receipts of offshore gaming licensees be determined?
The law says:
The Philippine Amusement and Gaming Corporation (PAGCOR) or any special economic zone authority or tourism zone authority or freeport authority shall engage the services of a third-party audit platform that would determine the gross gaming revenues or receipts of offshore gaming licensees. To ensure that the proper taxes and regulatory fees are levied, periodic reports about the results of the operation showing, among others, the gross gaming revenue or receipts of each offshore gaming licensee shall be submitted to the Bureau of Internal Revenue by PAGCOR or any special economic zone authority or tourism zone authority or freeport authority or tourism as certified by their third-party auditor.
The third-party auditor shall be independent, reputable, internationally-know, and duly accredited as such by an accrediting or similar agency recognized by industry experts.
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