Summary
RMC No. 33-2013 clarifies the income tax and franchise tax due from the Philippine Amusement and Gaming Corporation (PAGCOR), its contractees and its licensees.
Key points
- PAGCOR income subject to income tax. Income from operating and licensing casinos, gaming clubs, gaming pools and related operations is subject to corporate income tax under the NIRC. This includes casino, dollar pit, regular bingo and mobile bingo operations.
- Agents’ commissions. Agents of mobile bingo operated by PAGCOR earn commission income that is subject to regular income tax and to withholding tax under existing regulations.
- Other related operations and other income. Income from other related operations is also covered, such as licensed private casinos, bingo variations, internet casino and sports betting, private poker, junket operations and SM demo units. PAGCOR’s other income not connected with these operations is likewise subject to corporate income tax.
- Contractees and licensees. Entities authorized and licensed by PAGCOR to run gambling casinos, gaming clubs and gaming pools are subject to income tax under the NIRC.
- Franchise tax. Under Section 13(2)(a) of Presidential Decree No. 1869, PAGCOR pays a franchise tax of 5% of the gross revenue or earnings from its operations and licensing of casinos, gaming clubs, gaming pools and related operations.
Who is affected
- PAGCOR
- PAGCOR contractees and licensees
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.