Philippine Tax Research Device Supports Gambling Winnings Tax Efforts
The Philippine nationwide Tax Research Center (NTRC), a Department of Finance-attached research unit, said in a report that it supports the introduction of fees on lottery winnings and recharging fees for entering casinos that are local.
Professionals from the research center wrote within their report, Profile and Taxation of Selected Gambling and Betting Activities in the Philippines, that horse race options are not treated equally 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 pay a number of fees, including business, franchise and value-added ones. A tax on horse racing winnings also needs to be paid in addition to this, under the country’s tax code.
On the other hand, the Philippine Charity Sweepstakes Office (PCSO), which manages the local sweepstakes and lottery services, will not pay any such fees. As for the Philippine Amusement and Gaming Corp. (PAGCOR) plus the Philippines’ licensed casinos, they usually do not spend a tax on winnings.
Those that win on horse racing are to cover a documentary stamp income tax and a share income tax on winnings. Casino players, but, pay just a withholding tax on rewards more than PHP10,000. Residents whom spot bets on sweepstakes or lottery are just likely to pay documentary stamp tax.
The NTRC stated in its report that ‘players within the identified gambling and wagering tasks’ are perhaps not treated fairly about fees.