POGOs not entitled to tax breaks

POGOs will not be entitled to government tax breaks.
POGOs will not be entitled to government tax breaks.

Philippine Offshore Gaming Operators (POGOs) will not qualify for any tax incentives related to the Covid-19 outbreak.

Philippines.- Philippine Offshore Gaming Operators (POGOs) will not qualify for any tax incentives despite the government classifying them as business process outsourcing (BPO) companies.

Officials from the Department of Finance, the Bureau of Internal Revenue (BIR) and PAGCOR all announced in separate messages on Tuesday that POGOs would not receive any preferential tax treatment.

Philippines Finance Minister, Carlos Dominguez III, said: “Classification [as BPOs] does not exempt [them from taxes].

“There must be [an] express provision [in the] law [that would grant] incentives.

“These service providers cannot likewise avail [themselves] of the tax privileges of PEZA (Philippine Economic Zone Authority), because they are not PEZA-registered entities.”

Earlier this week, it was announced that POGOs were allowed to partially reopen after an extended period of restrictions were put in place due to the Coronavirus pandemic.

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PAGCOR philippines POGOs South East Asia