Philippine-licensed online gaming operators now need to register with local taxman as a prerequisite for their license renewal
The Philippine Bureau of Internal Revenue (BIR) has required all foreign and Philippines-based online gambling operators licensed by the local regulator, PAGCOR, to register with the tax bureau amid concerns that the Philippine gambling industry has turned into a conduit for undocumented workers from China.
BIR said in a statement issued over the weekend that it has been given the green light to join an interagency task force led by the Philippine Department of Labor and Employment and the Bureau of Immigration to trace and monitor Chinese nationals working in the nation’s online gambling industry and to prevent undocumented workers from being employed in that same industry.
BIR’s statement came days ahead of a meeting of Senate Committee scheduled for later this week, during which the influx of foreign workers into the country will be discussed. According to reports, more than 90% of all foreign nationals arrested or charged in 2018 were from China and most of them worked in the nation’s gambling industry.
The provision of online gambling services to Philippine nationals outside special ecafes is illegal. However, the country issues licenses to foreign and Philippines-based companies (the so-called POGOs) that are interested to conduct offshore online gambling services.
Most of these POGOs target Chinese gambling customers, which means that a big portion of their workers need to be fluent in Mandarin. This explains the number of Chinese nationals employed in the local industry.
All POGOs Required to Register with BIR
BIR said in its recent statement that all foreign and Philippines-based gambling companies, including ones with offshore licenses, should register with the tax agency as a prerequisite for the renewal of their licenses from PAGCOR.
The country’s Department of Finance also clarified in a statement that the registration should happen “on or before the commencement of business; or before payment of any tax due; or before or upon filing of any applicable tax return, statement or declaration.”
According to data cited by local news outlets, an estimated 100,000 Chinese nationals work in the Philippines’ online gaming sector. PAGCOR revealed that it had raided more than 170 unlicensed operations between 2017 and 2018 and hundred of Chinese had been detained after being discovered to be working without the necessary permits.
PAGCOR began accepting online gaming license applications in the fall of 2016. The Philippine gambling regulator has reportedly issued more than 50 POGO licenses since then, which indicates a significant amount of interest in its online gambling licensing system.
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