BIR Sets Tax Remittance Deadline for POGO Firms on August 10
The Bureau of Internal Revenue (BIR) instructed Philippine Offshore Gaming Operators (POGO) to remit their monthly withholding taxes on or before August 10, 2019. The taxing authority tightened their watch over POGO service providers to ensure the full tax compliance of all foreign workers and their employers in the Philippines.
Internal Revenue Deputy Commissioner Arnel Guballa says the BIR expects more than 240 POGO firms to remit the withholding taxes of their employees before the deadline. Last July, only six out of the 248 Philippine Amusement and Gaming Corporation (PAGCOR)-licensed service providers managed to remit a total of Php. 200 Million in personal income taxes.
BIR expects the remaining 242 POGO firms will also file and remit their withholding taxes before the prescribed deadlines. Under the mandated modes of filing and payment, employers have to remit withholding taxes from their employees on the 10th day after the end of the previous month.
POGO Firms Comply with BIR’s Monthly Tax Remittance
Earlier this August, the BIR acquired Php 200 Million from foreign workers in six compliant POGO firms providing IT, live dealer, call center and back-office support services to offshore gaming firms. Guballa expects the said amount of cash to increase today and in the following months amid the intensified campaigns of the BIR against unregistered foreign workers, which mostly comprise of Chinese nationals.
However, because of the BIR’s confidentiality rules, they withheld the names of the six compliant firms who managed to start remitting their taxes to the BIR. The taxing authority expects all POGO service providers to pay on or before the prescribed deadline for each tax return.
Last month, BIR issued more notices to other POGOs for allegedly failing to withhold and remit a total of Php 3 Billion in taxes for their foreign workers. But this is a separate case since the taxing authority already issued notices to a previous batch of POGOs whose total tax deficiencies amount to a staggering Php 4.4 Billion.
“We released some more; we assigned some more letter notices. That’s about another P 3 billion, so it’s now P 7 billion-plus,” Dulay said during the signing of the Joint Memorandum Circular on foreign nationals aiming to work in the country.