Pagcor income...

from non-high roller tables, slot machines and electronic gaming machines.

The Supreme Court did not exempt private casino operators from the 30-percent income tax on gaming income, but ruled that Pagcor’s income derived from gaming are exempted from cor- porate income tax.

Meanwhile, the country’s gaming regulator and operator’s other income increased by 36 percent to P2.05 billion from P1.51 billion in the previous year.

Maricar L. Bautista, Pagcor assistant vice- president for corporate communications, earlier explained the high court’s decision only affirmed their position that the imposition of 30 percent corporate income tax on gaming revenues is illegal.

The court’s decision stemmed from BIR memorandum circular 33- 2013, clarifying that the income of Pagcor as well as its contractees and licensees are subject to income and franchise taxes.

The BIR stated that the Pagcor is no longer exempted from corporate income tax as the state- owned firm has been effectively omitted from the list of exempted government- owned or controlled corporations (GOCCs).

But Pagcor questioned the BIR’s order, saying the firm should be exempted from income taxes as it already remits 50 percent of its gross income to the Bureau of Treasury and pays 5 percent in franchise tax.

Meanwhile, Bautista clarified that the recent court decision only pertains to the concerns of Pagcor, and not of the licensees. (CSL)