Philippine Tax Research Unit Supports Gambling Winnings Tax Efforts
The Philippine nationwide Tax Research Center (NTRC), a Department of Finance-attached research unit, said in a report it supports the introduction of fees on lottery winnings and charging costs for entering neighborhood gambling enterprises.
Experts through the research center penned inside their report, Profile and Taxation of Selected Gambling and Betting Activities in the Philippines, that horse race options are not treated similarly with casinos and lottery as the former are strained with an increase of taxes.
The NTRC further explained that Philippine horse race clubs have to spend lots of taxes, including corporate, franchise and value-added people. Along with this, under the nation’s tax rule, a taxation on horse racing winnings also needs to be compensated.
On the other hand, the Philippine Charity Sweepstakes Office (PCSO), which manages the local sweepstakes and lottery services, doesn’t pay such fees. As for the Philippine Amusement and Gaming Corp. (PAGCOR) therefore the Philippines’ licensed casinos, they do not pay an income tax on winnings.
Those that win on horse race are to pay for a documentary stamp income tax and a share income tax on winnings. Casino players, nonetheless, only pay a withholding tax on prizes higher than PHP10,000. Residents whom destination bets on sweepstakes or lottery are merely likely to pay documentary stamp tax.
The NTRC stated in its report that ‘players within the identified gambling and betting tasks’ are maybe not addressed fairly in terms of taxes.read more