QuestionsQuestions (PRESIDENTIAL DECREE NO. 956)
Presidential Decree No. 956 (July 9, 1976) created the National Gaming Commission to supervise and control all forms of authorized gaming and to impose taxes on gaming operations and players.
It is composed of a Chairman and two (2) members, appointed by the President, who serve at the pleasure of the President.
They must serve on a full-time basis and may not hold any other public or private office, nor may they be pecuniarily interested in any business or organization conducting gaming covered by the Decree.
Examples include: granting permits to qualified gaming operators; revoking permits; supervising and regulating all gaming authorized by law; authorizing gaming equipment/paraphernalia; prohibiting improper devices/drugs/stimulants to affect results; suspending or revoking licenses for cause; issuing implementing rules and regulations.
Its jurisdiction covers all forms of authorized gaming, except that sweepstakes races and lotteries remain under the Philippine Charity Sweepstakes Office, and boxing, wrestling, and professional basketball remain under the Games and Amusement Board.
An initial permit fee of P1,000,000; an annual permit fee of not less than P50,000 nor more than P200,000 as determined by the NGC; and a weekly fixed tax based on each type of game per table and each slot machine/similar devices.
For each type of game per table: not less than P2,000 nor more than P5,000; and for each slot machine or similar device: not less than P300 nor more than P500, as determined by the Commission.
A tax equivalent to 5% of the value of chips sold by the casino operator to the player. This tax is in lieu of income tax for which the player may be liable on winnings.
No bets are allowed except through chips purchased from the Cashier’s box inside the casino; chips cannot be purchased on the gaming table, and chips cannot be borrowed from another player inside the casino.
Casino employees: P75 annually for each casino manager and pit boss; P50 annually for each dealer and other similar gaming employee. Players: P500 annually for every person who enters and takes part in casino gambling games.
A player's license shall not be issued to a person whose annual net taxable income, as shown by the latest income tax returns, is less than P50,000.
Yes. PD 956 provides that a tourist from abroad may enter and play without complying with the income requirements other than presenting a valid passport.
Weekly fixed tax returns and chip taxes: on or before the first business day of the following week (with the casino as withholding agent for chip taxes). Annual fees under Sections 5(a), 7 and 8: on or before January 31.
The amount of the tax is increased by 25% (part of the tax) plus interest of 14% per annum from the original due date. Additionally, willful failure to file or willfully false/fraudulent return may lead to a surcharge of 50% of the tax or deficiency tax, collected in the same manner as the tax unless already paid before discovery.
Taxes under Section 5 go to the Metropolitan Manila Authority. Taxes and fees under Sections 6, 7, and 8 go to the National Government.
Importation is not allowed except when made by the grantee for its exclusive use in the casino and duly authorized by the Commission. The imported paraphernalia/devices are subject to 100% ad valorem tariff duty and 70% compensating tax (despite contrary provisions of existing laws).
The grantee must keep books of accounts and accounting records for daily transactions, issue invoices/receipts for every sale of chips, have them duly registered with the BIR (per Sections 334–337 of the National Internal Revenue Code), and keep them open for inspection by the NGC and the BIR.
Upon conviction: a fine of not less than P2,000 nor more than P5,000 and imprisonment of not less than one year nor more than three years. The penalty is imposed on responsible officers if the offender is a juridical person.
After paying the fine and serving the court-imposed sentence, the alien suffers additional penalty of deportation without the need for further proceedings to be instituted by the Commission on Deportation and Immigration.
Pending issuance of implementing letters of instructions for smooth turnover of functions, the concerned board/commission/agencies (Games and Amusements Board, Philippine Racing Commission, and agencies regulating cockfighting) continue to perform their respective functions.