Taxation of PH Based Offshore Gaming Licensee and their Accredited Service Providers (RR No. 20-2021)
Q1: What are OGL and Accredited Service Providers? Are they considered POGO?
Answer: Both are considered as POGO, however, OGL refers to an Offshore Gaming Operator, regardless of where it is organized, duly licensed, and authorized through a gaming license issued by a POGO Licensing Authority to conduct offshore gaming operations, including the acceptance of bets from offshore customers. On the other hand, Accredited Service Providers refer to any natural person, or juridical person, which provides ancillary services to an OGL or any other offshore gaming operator with a license acquired from other jurisdictions.
Q2: What is the difference in Income between Gaming and Non-gaming operations?
Answer: Income from Gaming Operations refers to income or earnings realized or derived from operating online games of chance or sporting event via the internet using a network and software or program while Non-gaming Operations refer to any other income or earnings realized or derived: within the Philippines (for Foreign-based OGLs), and within and without the Philippines (for Philippine-based OGLs), that are not classified as income from gaming operations.
Q3: Are OGL and Accredited service providers required to withhold and remit withholding taxes?
Answer: OGL and Accredited Service providers are still required to withhold and remit withholding taxes (RMC No. 102-17)
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