Tax Updates October 2022 (SyCipLaw Tax Issues And Practical Solutions (T.I.P.S.) Vol. 20)

1. Are offshore-based Philippine Offshore Gaming Operations (POGO) licensees subject to Philippine taxes?

Before September 22, 2021, no. In the case of Saint Wealth Ltd. v. Bureau of Internal Revenue (G.R. Nos. 252965 & 254102, December 7, 2021), the Supreme Court ruled that before the effectivity of Republic Act No. 11590, which was passed into law on September 22, 2021, offshore-based POGO licensees were not subject to any Philippine tax.

POGO licensees are offshore gaming operators duly authorized through a gaming license issued by a POGO licensing authority (such as the Philippine Amusement and Gaming Corporation [PAGCOR] or any special economic zone authority) to conduct offshore gaming operations including the acceptance of bets from offshore customers. (Section 2F, Revenue Regulations No. 20-2021 dated November 6, 2021 Implementing Republic Act No. 11590, otherwise known as an "Act Taxing Philippine Offshore Gaming Operations").