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 development of fees on lottery winnings and charging you charges for entering casinos that are local.
Professionals from the research center published within their report, Profile and Taxation of Selected Gambling and Betting strategies in the Philippines, that horse race options aren’t addressed similarly with gambling enterprises and lottery as the former are burdened with an increase of taxes.
The NTRC further explained that Philippine horse racing clubs need to pay a number of taxes, including corporate, franchise and value-added ones. In addition to this, under the nation’s taxation code, a income tax on horse race 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. When it comes to Philippine Amusement and Gaming Corp. (PAGCOR) therefore the Philippines’ licensed casinos, they usually do not pay a tax on winnings.
Those that winnings on horse racing are to pay for a documentary stamp income tax and a share income tax on winnings. Casino players, nevertheless, pay only a withholding taxation on awards greater than PHP10,000. Residents whom place bets on sweepstakes or lottery are just likely to pay documentary stamp tax.
The NTRC stated in its report that ‘players into the identified gambling and betting activities’ are not treated fairly when it comes to taxes.