Requested from PCSO by R. Ayungon at 07:55 PM on
Mar 14, 2023.
Purpose: Filing of taxes to BIR (due Apr 15)
Date of Coverage: 01/01/2022 - 12/31/2022
Tracking no: #PCSO-093706210033
Ayungon 07:55 PM, Mar 14, 2023
I know Lotto Agents are not required to have BIR permit nor Mayor's Permit. But, does PCSO require them to register to RDO (place of residency) in order to file 1701 annually? The taxes are automatically debited by PCSO from the agents' sales, that's why no need to file tax from the agent's end. This is the 2307 given by PCSO to Lotto Agents annually in order to create 1701.
Going back to my question, do the Lotto Agents require to register to RDO in order to get 2303 even though their taxes are paid by the PCSO?
Thank you very much!
Jimenez 08:13 AM, Mar 15, 2023
March 15, 2023
Thank you for your request dated Mar 14, 2023 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch, for Lotto Agent has to register to RDO if s/he 1 or more Lotto outlets in different cities?.
We received your request on Mar 14, 2023 and will respond on or before Apr 04, 2023 07:55:06 PM, in accordance with the Executive Order's implementing rules and regulations.
Should you have any questions regarding your request, kindly contact me using the reply function on the eFOI portal at https://www.foi.gov.ph/requests/aglzfmVmb2ktcGhyHgsSB0NvbnRlbnQiEVBDU08tMDkzNzA2MjEwMDMzDA, for request with ticket number #PCSO-093706210033.
Ruchiella T. Jimenez
Decision Maker 04:47 PM, Mar 20, 2023
March 20, 2023
Dear Rove Ayungon,
Thank you for your request dated Mar 14, 2023 07:55:06 PM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.
You asked for Lotto Agent has to register to RDO if s/he 1 or more Lotto outlets in different cities?.
Response to Request
Your FOI request is approved. Below is our response to your inquiry.
Citing the provision of the National lnternal Revenue Code which states that "A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines", the lotto agent, being a citizen of the Philippines and doing business, is taxed for the commission income he earns.
Generally, an individual who conducts business must take the following steps
1. Secure a DTI (Department of Trade and lndustry) registration for the intended trade name (one DTI registration only, even if business is intended to be placed in different cities, provicJecj ttrat suclr is aireaciy clisciosecj in tire initial DTi registratiorr, otherwise, amendment shall be made);
2. Secure a Mayor's/Business Permit (the authority to conduct business in a certain location) every year; and
3. Register with the BIR to secure a Certificate of Registration (regardless whether one has already a TIN or not) for every business conducted; to pay for the annual registration of P500, for every business, as well.
ln the case of lotto agents, they are exempted from Steps 1 and 2. They have to undergo BIR registration for every outlet registered in their name, and as such, will have to pay the corresponding annual registration.
What does a BIR Certificate of Registration contain? lt contains the main tax types of the registering taxpayer. By tax type, this means all the taxes the taxpayer must file and pay with the BiR, foremost are the Registration Fee and lncome Tax. This does not exempt anyone. Hence, the lotto agents are required to register with the BIR-RDO having jurisdiction of the lotto outle/s.
The PCSO is a withholding tax agent; however, the amount being withheld by PCSO does not correspond to the full taxes due that may be attributed to the agent's income tax. As registered with the BlR, the lotto agent must comply with all that is indicated in the Certificate of Registration.
We hope that this clarifies matters regarding the required registration of the Lotto agents with the BlR.
Your right to request a review by writing to ogm.pcso.gov.ph.
If you are unhappy with this response to your FOI request, you may ask us to carry out an internal review of the response by writing to ogm.pcso.gov.ph. Your review request should explain why you are dissatisfied with this response, and should be made within 15 calendar days from the date when you received this letter. We will complete the review and tell you the result within 30 calendar days from the date when we receive your review request.
If you are not satisfied with the result of the review, you then have the right to appeal to the Office of the President under Administrative Order No. 22 (s. 2011).
PCSO Decision Maker
FOI Receiving Officer
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