15 Ene Philippine Tax Research Unit Supports Gambling Winnings Tax Efforts
The Philippine National Tax Research Center (NTRC), a Department of Finance-attached research unit, stated in a study that it supports the development of taxes on lottery winnings and billing costs for entering casinos that are local.
Specialists through the research center published in their report, Profile and Taxation of Selected Gambling and Betting Activities in the Philippines, that horse racing options aren't treated similarly with casinos and lottery as the former are burdened with more taxes.
The NTRC further explained that Philippine horse race clubs need certainly to spend lots of taxes, including business, franchise and ones that are value-added. A tax on horse racing winnings also needs to be paid in addition to this, under the country's tax code.
Having said that, the Philippine Charity Sweepstakes Office (PCSO), which manages the neighborhood sweepstakes and lottery services, does not pay any such fees. When it comes to Philippine Amusement and Gaming Corp. (PAGCOR) plus the Philippines' licensed casinos, they usually do not pay a tax on winnings.
Those that win on horse racing are to pay for a documentary stamp tax and a percentage income tax on winnings. Casino players, however, only pay a withholding income tax on prizes more than PHP10,000. Residents whom place wagers on sweepstakes or lottery are only anticipated to pay documentary stamp tax.
The NTRC said in its report that 'players into the identified gambling and wagering activities' are maybe not treated fairly in terms of taxes.