President Rodrigo Duterte on Wednesday signed into law a measure taxing Philippine Offshore Gaming Operations or POGOs to shore up funds for healthcare during the pandemic.
Duterte signed Republic Act No. 11590 in a bid to expand regulation of gambling in the country, his spokesperson Harry Roque said.
"Bahagi ito sa ating mahigpit na pagre-regulate ng lahat ng klase ng gambling at pagbabawal ng iligal na sugal," he told Palace reporters.
The new law amends the National Internal Revenue Code to allow more tax collection from POGOs apart from the franchise fees imposed on their operations.
Taxes that will be collected from POGOs will be used to support the country's health care system--60% of which will be used to fund the implementation of the Universal Healthcare Act, while 20% will be used for the improvement of medical facilities, and the remaining 20% for the country's sustainable development goals.
According to the new law, all offshore gaming licensees--whether based in the Philippines or abroad--doing business in the country need to pay a 5% gaming tax on their monthly gross gaming revenue.
Non-gaming revenues of Philippine-based offshore gaming licensees will also be subject to a 25% income tax.
Foreigners working in POGOs are required to have a tax identification number or TIN, and need to pay a 25% withholding tax, with a minimum final levy of P12,500 for any taxable month.
POGO operations were suspended early last year as the country went into lockdown to curb the spread of COVID-19.
The operations of POGOs have divided lawmakers and the public as the industry has been linked to several illegal activities and crimes such as trafficking, and bribery for the entry of foreign workers.
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