Philippine Tax Research Unit Supports Gambling Winnings Tax Efforts
The Philippine National Tax analysis Center (NTRC), a Department of Finance-attached research unit, said in a report that it supports the development of fees on lottery winnings and billing fees for entering casinos that are local.
Specialists from the research center published within their report, Profile and Taxation of Selected Gambling and Betting Activities in the Philippines, that horse race options are not treated equally with gambling enterprises and lottery as the former are strained with increased taxes.
The NTRC further explained that Philippine horse racing clubs have to pay a number of fees, including business, franchise and value-added people. As well as this, under the country’s taxation rule, a tax on horse race winnings must also be paid.
Having said that, the Philippine Charity Sweepstakes Office (PCSO), which manages the area sweepstakes and lottery services, does not spend such taxes. As for the Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippines’ licensed casinos, they do not pay an income tax on winnings.
Those who win on horse racing are to cover a documentary stamp income tax and a portion income tax on winnings. Casino players, nevertheless, only pay a withholding taxation on prizes higher than PHP10,000. Residents whom place wagers on sweepstakes or lottery are merely anticipated to pay documentary stamp tax.
The NTRC said in its report that ‘players into the identified gambling and wagering activities’ are not treated fairly when it comes to taxes. Continue Reading