Philippine Tax Research Unit Supports Gambling Winnings Tax Efforts
The Philippine National Tax Research Center (NTRC), a Department of Finance-attached research unit, stated in a written report it supports the introduction of taxes on lottery winnings and charging you charges for entering casinos that are local.
Professionals through the extensive research center wrote within their report, Profile and Taxation of Selected Gambling and Betting strategies in the Philippines, that horse racing options are not addressed equally with casinos and lottery as the former are burdened with increased taxes.
The NTRC further explained that Philippine horse racing clubs have to pay a number of taxes, including corporate, franchise and ones that are value-added. A tax on horse racing winnings also needs to be paid in addition to this, under the country’s tax code.
Having said that, the Philippine Charity Sweepstakes Office (PCSO), which manages the area sweepstakes and lottery services, will not pay such fees. When it comes to Philippine Amusement and Gaming Corp. (PAGCOR) while the Philippines’ licensed casinos, they usually do not spend an income tax on winnings.
Those that winnings on horse race are to pay a documentary stamp tax and a portion tax on winnings. Casino players, nevertheless, pay only a withholding tax on awards higher than PHP10,000. Residents whom place bets on sweepstakes or lottery are just expected to pay documentary stamp tax.
The NTRC stated in its report that ‘players into the identified gambling and wagering activities’ are perhaps not addressed fairly regarding fees. (more…)