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 so it supports the introduction of taxes on lottery winnings and billing charges for entering casinos that are local.
Experts through the extensive research center composed within their report, Profile and Taxation of Selected Gambling and Betting Activities in the Philippines, that horse race options are not addressed similarly with casinos and lottery as the former are strained with an increase of taxes.
The NTRC further explained that Philippine horse race clubs have to spend lots of fees, including business, franchise and value-added ones. Along with this, underneath the country’s income tax code, a income tax on horse racing winnings also needs to be paid.
The Philippine Charity Sweepstakes Office (PCSO), which manages the local sweepstakes and lottery services, does not pay any such taxes on the other hand. As for the Philippine Amusement and Gaming Corp. (PAGCOR) plus the Philippines’ licensed casinos, they don’t spend a tax on winnings.
Those that winnings on horse race are to pay a documentary stamp income tax and a share taxation on winnings. Casino players, nonetheless, only pay a withholding income tax on prizes greater than PHP10,000. Residents whom place wagers on sweepstakes or lottery are merely likely to pay documentary stamp tax.
The NTRC stated in its report that ‘players into the identified gambling and gambling activities’ are perhaps not treated fairly about taxes. (mais…)