BIR clarifies franchise tax on gaming separate to fees owed to PAGCOR

franchise tax, Philippines, PAGCOR

The Philippines Bureau of Internal Revenue (BIR) has clarified that it expects all Philippine Amusement and Gaming Corp (PAGCOR) licensed gaming operators, including casinos and e-Sabong operators to pay a five percent franchise tax on income from gaming operations. 

BIR Commissioner Caesar R. Dulay also clarified that this franchise tax is separate from the license fees paid to PAGCOR – as the latter fees do not include taxes paid to the national government under Presidential Decree No. 1869. 

“The regulatory fees paid by contractees to PAGCOR is different and distinct from the five percent franchise tax payable to the BIR,” Dulay said, citing Revenue Memorandum Circular No.32-2022, according to a report from Manila Bulletin. 

The franchise tax however doesn’t apply to income from related services or non-gaming operations – which are subject to regular corporate income tax, value-added tax and other applicable taxes, he added. 

Dulay said that PAGCOR licensees will be expected to remit the taxes directly to the revenue district office where they are registered.