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 study so it supports the introduction of taxes on lottery winnings and asking charges for entering casinos that are local.
Professionals through the research center penned within their report, Profile and Taxation of Selected Gambling and Betting strategies in the Philippines, that horse race options are not treated equally with gambling enterprises and lottery as the former are burdened with more taxes.
The NTRC further explained that Philippine horse racing clubs need to spend a number of fees, including corporate, franchise and ones that are value-added. As well as this, underneath the country’s tax code, a income tax on horse race winnings must also be paid.
Having said that, the Philippine Charity Sweepstakes Office (PCSO), which manages the local sweepstakes and lottery services, doesn’t spend any such taxes. As for the Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippines’ licensed casinos, they usually do not spend an income tax on winnings.
Those who win on horse race are to pay a documentary stamp income tax and a percentage tax on winnings. Casino players, however, pay just a withholding tax on awards more than PHP10,000. Residents who place wagers on sweepstakes or lottery are merely anticipated to pay documentary stamp tax.
The NTRC said in its report that ‘players in the identified gambling and betting activities’ are perhaps not treated fairly regarding fees. Read more