Pagcor could lose tax benefits

pagcor owes millions to philippines

Pagcor could lose taxing benefits. Credits: Getty Images.

Pagcor could be one of Philippine’s governmental entities that would lose tax benefits.

Philippines.- The Philippine Amusement and Gaming Corporation (Pagcor) could lose taxing exceptions as the government is evaluating to remove the “in lieu of all taxes”, a benefit enjoyed by several governmental organisations in the Philippines. The national Congress is currently debating the measure, and it could be approved in the following weeks.

“We may not know how this House bill will turn out — it can emerge to be a completely different law in the end. However, we all hope that our legislators prudently consider the pros and cons of their proposed amendments,” Rolan L Bentulan, a supervisor from KPMG said to GGRAsia.

Under current Philippine taxing law, Pagcor is “subject to a 30 percent corporate income tax, but only a five percent franchise tax on its gross revenue on gaming operations, in lieu of all taxes.” That “in lieu of all taxes” section could be removed from current laws, taking away Pagcor’s benefits on financial regulations.

The Philippine Congress could approve the amendment proposed by House Bill 7214, which states that all companies must be regulated by the Tax Code but it also would lower the corporate income tax rate from 30 per cent to 25 per cent. However, Rolan L Bentulan said the amendment is still far from being approved.

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