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 study it supports the introduction of fees on lottery winnings and billing fees for entering neighborhood gambling enterprises.
Professionals through the extensive research center wrote within their report, Profile and Taxation of Selected Gambling and Betting Activities in the Philippines, that horse racing options are not treated equally with gambling enterprises and lottery as the former are strained with increased taxes.
The NTRC further explained that Philippine horse race clubs have to pay lots of taxes, including corporate, franchise and ones that are value-added. Along with this, under the country’s taxation rule, a income tax 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. When it comes to Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippines’ licensed casinos, they don’t spend an income tax on winnings.
People who win on horse race are to pay a documentary stamp income tax and a portion taxation on winnings. Casino players, but, pay just a withholding tax on prizes more than PHP10,000. Residents who spot wagers on sweepstakes or lottery are merely anticipated to pay documentary stamp tax.
The NTRC stated in its report that ‘players in the identified gambling and wagering activities’ are maybe not treated fairly when it comes to taxes. […]