RR No. 30-2020: Prescribes the rules and regulations to implement Section 11(f) and (g) of RA No. 11494 (Bayanihan to Recover as One Act) on the taxes derived from gaming and non-gaming operations as other sources of funding to address the COVID-I9 pandemic

Key points

1. Taxes imposed. A five percent (5%) Franchise Tax applies on gross bets or turnovers, or the agreed pre-determined minimum monthly revenues from gaming operations, whichever is higher. Income Tax, Value-Added Tax and other applicable taxes apply to income from non-gaming operations.
2. Who is covered. Offshore gaming licensees, including gaming operators, gaming agents, service providers and gaming support providers.
3. Computation. Taxes are computed on the peso equivalent of the foreign currency used, based on the prevailing official exchange rate at the time of payment.
4. Information sharing. PAGCOR and any third-party intermediary or audit platform it chooses give the BIR data on gross bets or turnovers, the Minimum Guarantee Fee or minimum regulatory fees paid per month, and other relevant data. The BIR may also get data from other licensing authorities and third parties.
5. Penalties and closure. Non-payment, underpayment, or payment not computed at the prevailing official exchange rate is a fraudulent act, subject to incremental penalties under Sections 248(B), 249(B), 253 and 255 of the NIRC. The BIR implements closure orders against those that fail to pay or commit fraudulent acts, and closure of an operator, licensee or agent includes all its accredited service providers.
6. After the emergency. After two years or upon determination that the COVID-19 threat is contained or abated, whichever comes first, the franchise taxes and non-gaming income taxes continue to be collected and accrue to the General Fund.

Who is affected

• Offshore gaming licensees, gaming operators, gaming agents, service providers and gaming support providers
• PAGCOR

Deadlines and effectivity

• After two years or upon containment of COVID-19, whichever comes first, collections accrue to the General Fund