The Philippine House Committee on Ways and Means today approved a proposed 5% franchise tax on Philippine Offshore Gambling Operators (POGOs) and a 25% tax on the salaries of foreign POGO workers as part of an ongoing crackdown on tax-dodging foreign online gambling operators licensed in and operating from the Philippines.
The measure’s author, Albay Representative Joey Salceda, says that it could raise PHP45 billion (approx. $887.7 million) in taxes for the nation’s coffers each year. The Philippines’ gambling regulator currently collects a 2% tax from locally licensed operators. POGOs thus contribute around PHP8 billion in annual taxes.
Foreign POGO staffers will thus have to obtain a Tax Identification Number before being allowed to work in the Philippines’ online gambling industry.
The bill reads that PAGCOR can only issue licenses to POGOs that have registered with BIR. Of the proposed 5% franchise tax, Rep. Salceda told reporters that it was a “very proportional and reasonable” rate, given the fact that the probability of winning at a casino is 18%, which means that POGOs’ gross winnings stand at an average 82%
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