POGOs generated US$160.78m in taxes in 2022

Taxes from Philippine offshore gaming operators (POGOs) doubled.

The Philippines.- The Bureau of Internal Revenue (BIR) has reported that Philippine offshore gaming operators (POGOs) generated PHP8.8bn (US$160.78m) in tax revenues in 2022, mainly due to enhanced tax compliance measures. Although an increase from the previous year’s PHP3.91bn, the take was still well below the projected PHP32bn envisioned by the POGO Law enacted during the Duterte administration in 2021.

Withholding taxes accounted for nearly 50 per cent of the total taxes collected at PHP4.35bn (US$79.48m). POGO employees are mandated to file a 25 per cent withholding tax on their gross salary.

Additionally, POGOs contributed PHP3.65bn (US$66.69m) through gaming tax payments, which require them to pay 5 per cent of their gross income. The state-run Philippine Amusement and Gaming Corp. (PAGCOR) also imposes regulatory fees of up to 2 per cent on their licensees.

Finance secretary Benjamin Diokno has previously supported a move to ban POGOs, despite potential implications for government revenue. Diokno highlighted concerns regarding reputational risks and social costs associated with the presence of POGOs but said “We can get revenues from lots of other sources.”

See also: Filipino senators urge president to ban online gambling