The Philippine Congress is currently considering a bill that could remove the “in lieu of all taxes” incentive currently enjoyed by a number of industries and businesses, including the country’s gaming regulator, Philippine Amusement and Gaming Corporation (PAGCOR), Philstar reports.
Under Section 13 of the Presidential Decree (PD) 1869, PAGCOR is currently subject to a 30 percent corporate income tax, but only a five percent franchise tax on its gross revenue on gaming operations, in lieu of all taxes.
Under an amendment proposed by House Bill 7214, which has been submitted to Congress, this incentive enjoyed by PAGCOR may be removed, meaning that any and all revenue would be subject to tax under the Tax Code, including that of income generated from gaming operations.
The bill, however, recommends lowering the corporate income tax rate from 30 percent to 25 percent.
Rolan L Bentulan, a supervisor from KPMG, who authored the Philstar article said the bill was still far from becoming law.
“We may not know how this House bill will turn out — it can emerge to be a completely different law in the end. However, we all hope that our legislators prudently consider the pros and cons of their proposed amendments,” he said.