Casinos in Entertainment City of Pasay given chance to obtain cheaper license fees, as Pagcor allows discounts for the moment.
In 2013, the Philippine Bureau of Internal Revenue (BIR) decided to charge gambling casino a revised income tax rate which stands at 30%.
Well-known corporations entered an agreement with Pagcor to see their licenses reduced 10 percentage points of gross gaming revenues from the 1st of April.
Travellers International Hotel Group Inc., Bloomberry Resorts and Hotels Inc., MCE Leisure (Philippines) Corporation, and Tiger Resorts Leisure and Entertainment Inc. are the companies involved in the deal.
The statement made by the companies to the stock exchange said “a mutually beneficial and practical solution to address the additional exposure to corporate income tax.”
Many of Pagcor’s operations were subject to tax. Income from casino and dollar-pit operations, traditional bingo and some mobile casino games were all taxed.
Agreement between Philippine government and Pagcor good for development
Head of Melco Crown Philippines, Clarence Chung, expressed his delight how the partnership between the Philippine government and Pagcor realized their plans.
“We welcome this initiative and express our sincerest gratitude to the Government of the Republic of the Philippines and PAGCOR for their continuous support in helping us realize our gaming, leisure and entertainment complex in Manila.”
The statement also gave indications that the new system will benefit the government and Pagcor, as they seek to maintain the conditions of the Philippine gambling laws.
“Such solution not only preserves for the Philippine Government (i.e., PAGCOR and BIR) the financial benefits that it already derives from the Provisional Licenses but also validates PAGCOR’s commitment to uphold and abide by the terms of the Provisional License.”