THE Bureau of Internal Revenue (BIR) is fast-tracking the processing of taxpayer identification numbers (TIN) for foreign nationals working in the country, including those working in the Philippine Offshore Gaming Operators (Pogo) sector, in line with the government’s initiative to collect the proper taxes, according to the Department of Finance (DOF).
In an interview with reporters, Finance Undersecretary Antonette C. Tionko said the BIR’s processing of the TIN for foreign nationals working in the country is going “pretty fast,” with the bureau now receiving bulk applications.
She explained that the BIR has already processed around 10,000 TINs for foreign nationals working in the Pogo sector in Parañaque City alone.
“The BIR actually sent letter notices already to Pogos. They [Pogo companies] are in the process of getting their TINs, like they [the BIR] issued them around 10,000 TINs. Once they have TINs, then the employer can already withhold [taxes]…. They are still reconciling the numbers but so far 10,000 TINs [were issued], I think that’s just only in Parañaque City,” she added.
According to Finance Secretary Carlos G. Dominguez III, the tax collections from the foreign nationals working in the country will ramp up further once they are all issued TINs.
“We will start collecting [this] July, but then we will not collect everything from everybody, it will ramp up…,” Dominguez said.
Earlier in the month, the BIR said it is confident of collecting the estimated P2-billion monthly taxes from foreign nationals employed in the country, specifically from the Pogo sector, starting this month as data matching between the interagency task force is ongoing.
At the sidelines of the signing of the joint memorandum vircular (JMC) on rules and procedures governing foreign nationals intending to work in the Philippines at the Department of Labor and Employment headquarters in Manila, Deputy Commissioner Arnel SD. Guballa said the processing of the TIN for employed foreign nationals in the country is ongoing to enable the government to collect the proper taxes.
“The processing of those without TIN is ongoing. They’re going to their respective district offices; although voluminous, we are really moving forward as agreed upon [in the] interagency [task force],” Guballa said.
The DOF earlier reported that an estimated P2 billion in taxes can be collected from foreign nationals working in the Pogo sector.
BIR Commissioner Caesar R. Dulay also pointed out that a number of foreign nationals are now volunteering to apply for their TIN, as a result of the interagency task force efforts to monitor the foreign nationals working in the Philippines.
Guballa noted that the P2-billion estimate in tax collections projected from both registered and nonregistered foreign nationals working in Pogos.
The BIR also reported that some P3 billion in taxes from employed foreign nationals in the Pogo sector can be collected, as it issues more letter notices to employers to pay the correct taxes due the government.
Dulay earlier said that the BIR sent out 29 letter notices to several Pogo service providers, telling them to remit P4.44 billion in taxes due from them as withholding agents.
Guballa also pointed out that, per Dominguez’s instructions, tax collections for the current year of 2019 from employed foreign nationals working in the country will be addressed first before authorities run after the unregistered foreign nationals.
Image credits: Department of Finance