Philippino operators required to register for tax

    Online betting firmsAs the Bureau of Internal Revenue in the Philippines (BIR) has announced through the Manila Bulletin, all the local and foreign offshore gaming operators should first register with the department before commencing their business. Furthermore, the BIR has requested that the Philippine Amusement and Gambling Corporation (PAGCOR) should abstain from providing the operators with licenses without having clearance from them.

    The Revenue Deputy Commissioner for Operations at BIR, Arnel Guballa, has stated that both local and foreign operators from now on are obliged to register under the Revenue Memorandum Circular (RMC) 78-2018, which is a new rule of the PAGCOR adjustment and renewal procedure. The Manila Bulletin quotes Guballa saying that: “Online activity is sufficient to constitute doing business in the Philippines. Thus, a foreign corporation engaged in Philippine offshore gaming operations is considered a resident foreign corporation engaged in business in the Philippines, not a non-resident foreign corporation.”.

    Gaming operators are obliged to register with the BIR office being in charge of the area in which their headquarters are located.

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