THE Department of Finance (DOF) said on Thursday the issuance of tax identification numbers (TINs) for foreign nationals working in the Philippines will still continue, as this is in line with the provisions of the country’s tax code.
In a text message to reporters, Finance Secretary Carlos G. Dominguez III said:
“We will not suspend the issuance of TINs to foreign workers. As for the BIR [Bureau of Internal Revenue], we are simply implementing the Tax Code, and requiring those earning Philippine sourced income to pay income tax.”
Asked about the Chinese embassy statement on the Philippines’s role in the spread of online gambling in China, the Finance chief pointed out that the Duterte administration will study the statement first before it decides on what to do.
“I haven’t seen this statement you mentioned. We will let you know once we studied the statement,” Dominguez added.
The DOF reported on Thursday that the Bureau of Internal Revenue (BIR) has collected an initial P186 million in withholding taxes from Philippine Offshore Gaming Operators (Pogo) and is getting another P170 million this month in tax payments from these businesses employing foreign nationals.
Citing BIR data, Finance Assistant Secretary Dakila Napao said that of the 48 notices sent out by the bureau directing the Pogo to pay the withholding taxes of their foreign workers, 22 have either replied or protested the tax assessments.
“The BIR, though, has already collected P186 million from the notices sent out and is set to collect another P170 million moving forward. This started last month and will be collected on August 10,” Napao said.
In a separate report to the President and the Cabinet, BIR Commissioner Caesar R. Dulay said that for the initial year of operations of Pogo service providers in 2017, the BIR collected only P175 million in taxes.
Pogo service providers remitted over P579 million in taxes in 2018 and voluntarily paid P789 million in the first half of 2019.
As part of the steps to ensure that Pogo pay the right amount of taxes to the government, a Joint Memorandum Circular (JMC) was issued requiring all foreign nationals and their employers or withholding agents to secure a TIN from the BIR as part of the documentary requirements in securing employment permits and visas.