Industry

Influx of Chinese Online Casino Workers Overwhelm Philippine Tax Office

The Philippines is complaining about an invasion of Chinese workers who flooding the country to take advantage of job offers. Philippine offshore gaming operators (POGOs) are bringing Chinese workers in by the boatload in order to properly service the Chinese online gaming market. According to records, there are 56 licensed POGOs operating in the country and they employ up to 250,000 Chinese nationals. This does not include the estimated 30 unlicensed operators who are also bringing in Chinese workers.

This has caused problems for the Bureau of Internal Revenue (BIR). Workers need a tax identification number (TIN) to work in the Philippines and the BIR is being overwhelmed by the demand. This is why the country’s Department of Finance (DOF) is asking POGOs to withhold taxes from their employees, despite not having and TINs issued to them yet.

Gambling in all forms is banned in Mainland China but that is not stopping offshore operators in the Philippines from setting up shop, bringing in Chinese employees and then targeting the Chinese online gambling market. 

According to an interview with Finance Undersecretary Antonette C. Tionko, the BIR has only issued issued 10,000 TINs. This was to POGO workers that were formerly not registered in the cities of Pasay, Parañaque, and Metro Manila. This was a tough task for the agency as they were not able to cope with the number of workers and they are now swamped with work as they have to accommodate the remaining 130,000 unregistered POGO workers who still have no TINs.

The main obstacle to quick issuance of TINs by the bureau is because they needed to confirm that the workers’ personal information on registration forms was correct. Additionally, the fact that some Chinese names were similar or sounded alike was becoming a barrier to quick registration.

Income Tax Payments

However, despite the delays, the BIR assured that all unregistered POGO worker would be able to get their TIN as soon as possible. BIR officials note that POGOs already withhold the 25 percent income tax from their employees. They are in need of the TINs so that the BIR can properly record their taxes. 

As soon as POGO workers receive their TINs, their employers are legally required to remit their taxes to the Philippine government. If they do not, the BIR warns that the companies might be slapped with a 50 percent penalty for committing a criminal offense. The BIR expects to collect two billion pesos in taxes every month from POGOs.

David Walker

David is our resident 'down under' contributor, letting us know what is going on in the southern hemisphere, he is also keen blackjack player

Share
Published by
David Walker

Recent Posts

LV Sands, Concerned About Online Competition Amid Plan to Build $6bn Casino

Summary: Las Vegas Sands chairman and CEO Rob Goldstein is concerned about the impact of…

4 weeks ago

Biloxi Casino Plans Advance as MGC Considers Two Venues

Summary: Tullis Gardens Hotel and the Tivoli development are in the works. The casinos would…

1 month ago

Rio Hotel & Casino Finishes Phase One of Massive Property Renovation Project

Summary: Rio Hotel & Casino has completed phase one of its multi-year property-wide renovation project.…

2 months ago

Industry Heavyweight Execs Talk Tech Future at TribalNet Conference & Tradeshow

Summary: Monday’s TribalNet Conference & Tradeshow brought together gaming industry executives who discussed the future…

2 months ago

Nevada Regulators Propose Solution for Armed Casino Security Shortage

Summary: The Nevada Gaming Control Board addressed the shortage of armed casino security following the…

2 months ago

Venetian Waiting for Final Approval for $550m Dividend Distribution

Summary: The Venetian in Las Vegas is getting ready for a massive dividend distribution. The…

4 months ago