BIR joins DOLE, BI in task force on Pogo

By Rea Cu, Buniess Mirror, Feb 18, 2019

THE Bureau of Internal Revenue (BIR) has signified its intention to join the interagency task force led by the Department of Labor and Employment (DOLE) and the Bureau of Immigration (BI), which aims to check and monitor the number of Chinese nationals working in the online gaming industry.

In a report to Finance Secretary Carlos G. Dominguez III, BIR Deputy Commissioner Arnel SD. Guballa said the bureau has also asked for the cooperation of the Philippine Amusement and Gaming Corp. (Pagcor) in requiring foreign and Philippine offshore gaming operators (Pogo) to register with the BIR before their licenses to operate can be renewed by the state-run firm.

“We want to trace these Chinese nationals employed by these gaming operators. They allowed us to join the task force because we are asking data from Immigration and DOLE on the list of these foreign nationals,” Guballa said during a recent Department of Finance Executive Committee meeting.

He reported that with the issuance by the BIR of Revenue Memorandum Circular (RMC) 78-2018 last year, all foreign and Philippine-based gaming operators, including those with offshore licenses, are now required to register with the tax agency as a prerequisite for renewal of their Pagcor licenses. According to the BIR, the registration of offshore gaming operators with the bureau shall be done with the agency’s regional district office having jurisdiction over the place where the head office and/or branch of the Pogo hub is located.

“All foreign-based and Philippine-based operators, including those that have already been issued an offshore gaming license by Pagcor, are required to register with the BIR 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,” RMC 78-2018 said.

In December 2018, the DOLE said it was set to start in January 2019 its census for foreign workers employed by Pogos.

The DOLE’s Bureau of Local Employment Director Dominique R. Tutay pointed out that they will also be joined by the DOLE’s regional offices, Pagcor and the BI for the said initiative.

Aside from determining the number of foreign workers in the Pogo, the mapping also aims to weed out those illegally working in the country.

Foreigners without the necessary Alien Employment Permit or Special Work Permit (SWP) will face possible deportation from BI.

In September 2018, Pagcor reported it was cracking down on online gaming firms operating without a license in the country and those found to be violating the agency’s Offshore Gaming Regulatory Manual.

Pagcor Chairman and CEO Andrea D. Domingo said in a statement that the agency is cooperating with law-enforcement offices to identify illegal online gaming operators, and that investigations and raids are regularly undertaken by the agency in line with this.

It was also reported that revenues from Pogo in 2017 reached P3.9 billion; license fees charged to each Pogo operator amount to $200,000; while the application and processing fees cost $15,000. On top of the fees, Pagcor requires operators to put up a $250,000 cash fund just in case they can’t pay bets that win.