RMC No. 78-2018 — Provides guidelines on the registration of Philippine Offshore Gaming Operators and its accredited service providers Digest | Full Text

tfr li[ctj r ]F rr\! !:Fit\i41. p11; \/h,t\f utr REPUBLIC OF THE PHILIPPINES , ]TIEPARTT"TPNT OF FINANCE J,- I oF TNTERNAL REVENUE f,punrAu ll1' RECORDS MGT. DIVISION " Septem R.EVENUE N{EMORANDUM CIRCULAR NO. 72 - 2II& SUBJECT Regrlstration Requirements of Philippine Offshore Gaming Operators and its TO Accred ited Service Providers : All Irrternal Revenue Officials, Employees and Others Concerned. Revenue Memorandurn Circular (RMC) No. 102-20 I 7 dated Decernber 27 ,201 7 was issued to clarifl, the taxability of Philippine Offshore Gaming Operations (POGO) Licensee and its registration requirement with the BureeLu. However, due to different attributes of a foreign corporation, there shall be a special implementation and ;ldrninistration with regard to the registration of POGO Licensee who is a foreign corporation. The terrn "Resident Foreign Corporation" applies to a foreign corporation engaged in trade or business in the Philippineri wlrile the term "Nonresident Foreign Corporation" applies to a foreign corporation notengaged in trade orbusiness in the Philippines [Sec. 22 (H)(I) of NIRC, as antendee{1. RMC No. 102-2017 reiterrrtes the recognition that online activity is sufficient to constitute doing business in the Philippiner;, thusr, foreign corporation engaged in POGO is considered as Resident Foreign Corporation engagr:d in t,usiness in the Philippines and not a Nonresident Foreign Corporation. This Circular is being issued to provide guidelines in the registration of business entities and persons who will engage in the business of offshore gaming operations, including their agents and service providers licensecl and authorized by Philippine Amusement and Gaming Corporation (PAGCOR), relative to Ser:tion II of Revenue Memorandum Circular No. 102-2017 dated Decernber 27,201'7 . A. Definition of Terms For purposes of this Circular, the following terrns are adapted from the Offshore Gaming Regulatory Manual of PAGCOR dated July 03,2018: l. "Offshore Gaming License" is an authority granted by PAGCOR to Philippirre Offshore Garning Operators for the establishment, rnaintenance and the conduct of offshore ganting operations in a sper:ific s,te within the jurisdiction of PAGCOR. 2. "Philippine-based ,Jperalor" refers to duly constituted business corporation organized in the Philippines who ra'ill eilher conduct offshore gaming operations themselves or engage the services of PAGC()R- accredited service providers. 3. "Foreign-based Otrreraiot''" ref-ers to duly constituted business corpolation organized in any foreign country that will engage the services of PAGCOR-accredited local gaming agent and service providers frtr its offshore gaming operations. 4. "Philippine Off-slrore Garning Operations (POGO) Licensee" means the entify that was issued by PAGCOR an O,fshorr: Gaming License.

5. "POGO Hub" is a colnplex which houses the operations, as well as other logistical, administrative and support services for offshore garning operations of PAGCOR POGO Licensees and accredited Service Providers. 6. "Local Garnirrg Agent" refers to duly constituted business enterprise organized in the Philippines or a person c,f good repute and financial standing who will representthe foreign- based operator in the Philippines. 1. "Service Provider" refers to dLrly constituted business corporation organized in the Philippines who provide cornponerlts of offshore garning operations to POGOs such as the following: a. Custorner R,:latiorts [iervice Provider - refers to entities which provide customer service to the players a.nd cater to their various needs through direct contact and interaction by tneans of remote cc,mrnun ication devices. b. Strategic Support P:ovider - refers to entities that develop or improve the business processes of'the POC}O Licensee. These entities usually operate as the back-office suppoft of the POGO L,icensr:es and do not have direct contact with players. IT Support l)rovider - refers to entities that provide technical supporl to POGO Licensees such as but rrot lirnited to diagnosing and solving software faults, IT maintenance. installing and cottfigurinl; coml:uter systems, and the placement and management of player accounts. d. Garning Soltware Platform Provider - refers to entities that provide propriety products either as ganring systems such as sportsbook for Sportsbetting or games itself sr"rch as RNG based game:; for E-czLsino. e. Live Studio anC Stre;lming Provider- refers to entities that provide real time streaming of authorized g,anring ar:tivities coming from live studios and/or licensed garning venues via the internet to the websites of the POGO Licensees. f. Special Class of BP() - refers to entities that are servicing legitirnately licensed garning operators abl'oad and do not in any way handle betting but pLrrely product nrarketing and custotrer relations and are not seruicing any of PAGCOR POGO licensees and have at least ninety (90%) percenl Filipino workforce. Registration Requirr:mentrt of POGO Licensee All Foreign-baLsed and Philippine-based Operators, including those have already been issued an Offshore Caminp; License by PAGCOR are required to register with the Bureau of Internal Revenue on or before the commenc.ement of business; or before payment of any tax due; or before or upolt filing of any applicable tax return, statement or declaration as required by the Tax Code. as amenderl, whi,:hever comes earlier. "Comntencernt:nt of business" shall be reckoned fi'om the day when the first sale transaction occurrt:d or ra'ithin thirty (30) calendar days frorn the issuance of Mayor's Permit/Professional Tax Re:ceipt (PTR) by LGU, or Certificate of Registration issued by the Securities and Exctrange Commission (SEC), whichever comes earlier. arrrtgpo,l ui: itu r qK!!AL r(trvr.i.rutr

B.1 Philippine-lBased Operator, Foreign-Based Operator and Service Provider a. Place ol'Rggistration - RDO having jurisdiction over the place where the Head Office and/or branch or POGO Hub is located. b. Documentary Requirements - For Non-Indivirlgal (l) BIR Fonn No. 1903; (2) Photocopy ol SEC Certificate of Incorporation; or Pholocopy of Certificate of Recording (in case of paftnership); or Pholocopy of License to Do Business in the Philippines (in case of foreign corporation): or In cast: of Foreign-based Operator who is not required to be registered with the SEC, in lieu of SEC License to Do Business registration: - Photocopy of consularized Cerlificate of Incorporation issued by the proper authority itr any foreign country and/or consularized Articles of Irrcorporation (1,OI) (or equivalent Fact if Establishrnent/Creation/Organization), showing thr: addrcss and that gaming is one of the purpose of business; and - Photocopy of a certification from the Philippine Securities and Exchange Commission that the Foreign Corporation is or not registered to engage in business in the Philippines; (3) Articles of lrrcorporation; or Articles of Partnerships: (4) Photocopy ol'Mayor's Business Perrnit; or Dul'y received Application for Mayor's Business Pennit, if the former is still in proc)ess with the LGU; (5) Proof of Payrnent of Registration Fee (RF); (6) BIR Fonn No. 1906; (7) Final JL clear" sample of Principal Receipts/ Invoices. Additional docurnentary requirement/s, if applicable: ( l) Coplu of Appointment letter of the Local Gaming Agent; (2) Special Powr:r of Attorney and ID - If applicant/filer is the withholding agent or local representative in the P.nilippines or Local Carning Agent i. Original copy of Special Power of Attorney (SPA) or wrinen authorization duly executed by the Resident Foreign Corporatiorr authorizing its withholding agent or local representative in the Philippines or Local Gaming Agent to process the application for registration with the BIR. - If appli;ant is the local representative of the u,ithholding agent or Local Gaming Agent of the Resident Foreign Corporation i. Original copy of a Special Power of Attornev (SPA) or consularized written authorization duly executed by the Resident Foreign Corporation :l.r..r<rril l.iF lrv I E'1il.:Al. authorizing its withholding agent or local representative in the Philippines or Local Gaming Agent to process the application for regrstration with the BIR. , 07 2018 I to o0r/

ii. Original copy of Letter of Authorization fi'om the withholding agerrt or l,ocal Carning Agent authorizing the local representative to process the application for registration with the BIR. The registration of Books of Accounts should be done within thiffy (30) days from the date of registration. Local Gamirng, Agenrt a. Place of Resistration - RDO having jurisdiction over the place where the Head Office and,/or branch. b. Docunrrintary Requirements - For trndividual : ( l) BIR Form No. 1901; (2) Any identification issued by an authorized government body (e.g. Birfh Ceftificate. passpoft, driver's Iicense, Community Tax Certificate) that shows the name, address and birthdate of the applicant; (3) Photocopy oFMayor's Business Permit; or Duh'received Application for Mayor's Business Permit, if the forrner is still in procesrs with the LGU and/or Prol'essional Tax Receipt/Occupational Tax Receipt issued by the LGU; or DTI Cr:rtificate; (4) Proof of Payment of Registration Fee (RF) (if with existing TIN or applicable after'flN issuance); (5) BIR F'orm l,lo. 1906; (6) Final & clear sample of Principal Receipts/ Invoices. Additional docunrentary requirernentls, if applicable: l)( Special Powr:r of Attorney (SPA) and ID of authorized person, in case of authorized represe:ntative who wilI transact with the Bureau; For Non-[ndivirllual (l) BIR Form Nr. 1903; (2) Photocopy otSEC Ceftificate of lncorporation; or Photocopy Cerlificate of Recording (in case of partnership): or Photccopy c,f License to Do Business in the Philippines (in case of foreign corporation): or (3) Arricles of lrrcorporation; or Arlicles of Paftnerships; (4) Photocopy ol Mayor''s Business Permit; or Dull receive d Apolication for Mavor's Business Penrrit. if the former is still in pro()esii with the LGU; (5) Proof of Payment of Registration Fee (RF); (6) BIR Form Nc. 1906; inai dz clear sample of Principal Receipts/ lnvoices li-rxEr,.r"j ,-rr- 0? 2018 RECORDS MGT

Additional docurnentary requirement/s, if applicable: (l) Board Resolution indicating the name of the authorized representative and Secretary's Certificate or Special Power of Attorney (SPA) and ID of authorized p,3rSor, in case of authorized representative who will transact with the Bureau; The registra.tion of Books of Accounts should be done within thirty (30) days from the date of registriltion. C. Transfer of Registlration In case a POGO Licensee transfers his registered address to a new location, it shall be the duty of POG(f Licenriee or its Local Gaming Agent to inform the BIR district office where the POGO Licensee is r,:gistered of such fact by filing the prescribed BIR Fonn specifying therein the complete address where the POGO Licensee intends to transfer. D. TransitoryProvisions For purposes of this Circular, all existing POGO Licensees prior to the issuance of this Circular shall be registered with the RDO having jurisdiction over the place where the Head Office and/or branch or ['OGO Hub is located with the following documentary requirenrents: (l) BIR Form Nc. 1903; (2) Copy r\rticles of Incorporation/Parlnerships or Certificate of Incorporation issued by the prope.: authority in any foreign country; (3) Proof of Payment of Registration Fee (RF); (4) BIR Form Nc. 1906; (5) Final Jt clear sample of Principal Receipts/ Invoices. Additional docurnentary requirement/s, if applicable: l)( Sper:ial Powt:r of Attorney (SPA) and ID of authorized person, in case of authorized representative who will transact with the Bureau; The registration of Books of Accounts should be done with in thifty (30) days frorn the date of registr;ltion. All intemal revenue offir:ers and employees are hereby enjoined to give this Circular a wide publicity as possible. /tr"^/$*) CAESAR R. DULAY Commissioner ol Internal Revenue H-2 019547 lmAg [r,--n n,qu Fr-vt:i\utr i?FnIhq hLvv'r;- MGT. o.iVlst' [t nt