Gov’t to monitor proper tax payment of POGO workers

MANILA, Philippines — The Department of Finance (DOF) and Bureau of Internal Revenue (BIR) have sought the cooperation of other government agencies to ensure that foreign nationals working in Philippine offshore gaming operators (POGOs) are properly monitored and are paying their taxes.

During a meeting last Feb. 19, Finance Secretary Carlos Dominguez asked the Department of Foreign Affairs (DFA), Department of Justice (DOJ), Bureau of Immigration (BI), Department of Labor and Employment (DOLE), Philippine Amusement and Gaming Corp. (PAGCOR), Department of Trade and Industry (DTI), and the Securities and Exchange Commission (SEC) to help in consolidating the list of foreign nationals working for POGO operators and service providers.

Dominguez said a list of foreign national employees should be consolidated and reconciled to help the BIR collect the proper income taxes from these individuals.

“If we get all that (information), then it is possible that we can begin to collect taxes, enforcing the law on these foreign workers who are operating here,” Dominguez said.

He said it is also imperative for the government to find out who and where all these alien workers are, given their presence’s implications on national security.

During the meeting, Justice Secretary Menardo Guevarra said less than 95,000 foreign nationals were issued by the BI with special work permits (SWPs) as POGO employees as of June last year.

However, PAGCOR chairperson Andrea Domingo said this figure may not be accurate as some workers with SWPs may have already secured provisional working permits, but still remained on the BI’s list.

Meanwhile, she said those with provisional working permits may have already been issued AEPs by DOLE.

“The numbers may overlap,” Domingo said.

In the meantime, she committed to provide complete information on POGO service providers in the country, and require them to provide a list of their foreign workers and their respective salaries.

For his part, SEC deputy commissioner Javey Paul Francisco said the agency could provide a list of corporations registered as POGO agents, while Trade Secretary Ramon Lopez said the DTI could submit the list of foreign nationals working in special economic zones.

Labor Secretary Silvestre Bello III said he would immediately convene the interagency task force which monitors the number of foreign nationals working in the offshore gaming industry to consolidate and reconcile the lists to be provided by these agencies.

Dominguez said he expects to receive the complete and consolidated list of foreign POGO workers when the DOF meets members of the task force 30 days after their discussion.

Meanwhile, BIR deputy commissioner Arnel Guballa said the agency has listed 54 POGO licensees in the country, of which 10 are local firms and 44 are offshore operators.

However, he said only seven of the local operators and only eight of the offshore licensees are registered with the BIR.

Under BIR Revenue Memorandum Circular (RMC) No. 78-2018, all foreign and Philippine-based gaming operators, including those with offshore licenses, are now required to register with the BIR as a prerequisite in the renewal of their Philippine Amusements and Gaming Corp. (PAGCOR) licenses.