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RMC No. 132-2024: Further clarifying the tax treatment of the Philippine Amusement and Gaming Corporation, its Licensees and Contractees

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Summary

RMC No. 132-2024 further clarifies the tax treatment of the Philippine Amusement and Gaming Corporation (PAGCOR), its Licensees and Contractees.

Key points

  1. Gaming income. Income from PAGCOR’s franchise or gaming operations, and the gaming income of its Contractees and Licensees, is subject to five percent (5%) Franchise Tax under PD No. 1869, as amended. This is in lieu of all other taxes, including Corporate Income Tax and VAT. Regulatory and license fees PAGCOR receives from Licensees count as gaming income. Agents’ commission income from mobile bingo is subject to regular Income Tax and Withholding Tax.
  2. Non-gaming income. Income from other related services or non-gaming operations is subject to Corporate Income Tax under Section 14(5) of PD No. 1869 and to VAT under the Tax Code.
  3. Licensees in Ecozones or Freeports. Gaming income is not subject to SCIT, ITH or Corporate Income Tax but remains subject to the 5% Franchise Tax in lieu of other taxes. Non-gaming income covered by the registered activity with the Investment Promotion Agency is exempt from Corporate Income Tax and VAT under the 5% SCIT, or exempt from Corporate Income Tax but subject to VAT under the ITH. Non-gaming income not covered by the registered activity is subject to regular Corporate Income Tax, VAT and other applicable taxes.
  4. Remitting Franchise Tax. Licensees and Contractees remit the 5% Franchise Tax directly to the RDO where registered, using BIR Form No. 2553 with ATC OT 010. License fees are distinct from the Franchise Tax.
  5. Qualifying fee. PAGCOR collects a qualifying fee from players under EO No. 48, series of 1993, RR No. 06-1993 and RMO No. 14-1993. It issues a weekly check to the Bureau of Treasury, credited to the BIR, not later than Tuesday following each week, and files an annual report with the BIR within thirty (30) days after the close of the taxable year.

Who is affected

  • PAGCOR
  • PAGCOR Licensees and Contractees
  • Licensees located in Ecozones or Freeports

Deadlines and effectivity

  • Weekly qualifying fee check not later than Tuesday following each week
  • Annual report within thirty (30) days after close of taxable year
  • Applies prospectively

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.

Copies of BIR issuances are hosted here for reference. For the official version, check bir.gov.ph. Summaries by Tax Resources PH are not a substitute for the full text or professional advice.