Philippine Tax Research Unit Supports Gambling Winnings Tax Efforts
The Philippine nationwide Tax analysis Center (NTRC), a Department of Finance-attached research unit, stated in a study it supports the introduction of fees on lottery winnings and recharging fees for entering local gambling enterprises.
Specialists through the research center penned inside their report, Profile and Taxation of Selected Gambling and Betting Activities in the Philippines, that horse racing options are not addressed equally with casinos and lottery as the former are strained with more taxes.
The NTRC further explained that Philippine horse racing clubs have to spend lots of fees, including business, franchise and value-added ones. As well as this, beneath the nation’s taxation rule, a taxation on horse racing winnings must also be compensated.
The Philippine Charity Sweepstakes Office (PCSO), which manages the local sweepstakes and lottery services, does not pay any such taxes on the other hand. As for the Philippine Amusement and Gaming Corp. (PAGCOR) plus the Philippines’ licensed casinos, they do not spend a tax on winnings.
People who winnings on horse race are to pay for a documentary stamp tax and a portion tax on winnings. Casino players, however, pay only a withholding tax on awards higher than PHP10,000. Residents whom place bets on sweepstakes or lottery are only likely to pay documentary stamp tax.
The NTRC stated in its report that ‘players in the identified gambling and betting activities’ are maybe not treated fairly with regards to taxes.