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 report that it supports the introduction of taxes on lottery winnings and billing fees for entering local gambling enterprises.
Experts from the extensive research center wrote within their report, Profile and Taxation of Selected Gambling and Betting strategies in the Philippines, that horse racing options aren’t treated equally with casinos and lottery as the former are burdened with more taxes.
The NTRC further explained that Philippine horse racing clubs need certainly to pay a number of taxes, including business, franchise and value-added people. A tax on horse racing winnings also needs to be paid in addition to this, under the country’s tax code.
The Philippine Charity Sweepstakes Office (PCSO), which manages the local sweepstakes and lottery services, does not pay any such taxes on the other hand. When it comes to Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippines’ licensed casinos, they don’t pay a tax on winnings.
Those that win on horse racing are to pay a documentary stamp income tax and a share income tax on winnings. Casino players, nevertheless, pay just a withholding taxation on prizes more than PHP10,000. Residents whom place bets on sweepstakes or lottery are only likely to pay documentary stamp tax.
The NTRC stated in its report that ‘players into the identified gambling and betting activities’ are perhaps not addressed fairly in terms of fees. (more…)