PSO Makati Accounting Firm

Accounting Treatment for Online Gaming & Casino Operators: Why Their Accounting Isn’t Like Everyone Else’s

If you’re in the online gaming or casino space, especially those regulated by PAGCOR, you’d know by now that accounting here isn’t exactly business-as-usual.

On the surface, it might look like any other SEC-registered company. But once you get into the actual compliance work, you’d realize, “Ay, iba pala ‘to.”

Here are a few key reasons why:

Franchise Tax, Not Income Tax
Most regular corporations pay 25% corporate income tax. But for licensed online gaming operators, it’s usually a 5% franchise tax on gross gaming revenue — regardless of expenses. So from the start, the way revenue is computed and presented in the books is different.

You’re Not Just Reporting to SEC and BIR
In this space, regulatory coordination doesn’t stop with government agencies. Operators also comply with PAGCOR requirements, which means your financial reports sometimes need to speak their language — including formats, schedules, and even operational assumptions.

System-Generated Transactions are the Backbone
You’re not just reconciling sales and expenses. You’re looking at wallet balances, game logs, transaction IDs, even player turnover. And yes, the books have to make sense with those system records. Kaya hindi puwedeng basta encode lang, kailangan may understanding din sa daloy ng platform.

Capital Structure May Be Heavily Scrutinized
Especially for companies under the PIGO model or with foreign ownership, regulators may look closer into how capital is structured and deployed. There’s more to it than just putting up paid-up capital.

This kind of accounting work really goes beyond just ticking the boxes. You need both compliance experience and a working understanding of how these platforms actually operate. If you’re in the industry, or assisting one, it helps to know the moving parts, especially before audit and financial statement season comes around.

If you want to learn more or get clarity on how this applies to your setup, feel free to contact us anytime.

BUSINESS REGISTRATION AND INCORPORATION SERVICES

Thinking of registering a business in the Philippines? We help you get it done the right way. Contact us.

Starting a company in the Philippines can feel overwhelming, especially if you are a foreign national or managing a regional startup. Business registration is not just about filling out forms — it involves navigating SEC, BIR, city hall, and more. One missing document or one wrong step can lead to weeks of delay.

We work with multinational founders, startup teams, and remote companies who want to register their business fast, clean, and with zero guesswork.

Our team handles end-to-end business registration so you can focus on building your team, growing your market, or talking to investors. Whether you are opening a domestic corporation or setting up a foreign branch, we’ve got your back.

Need help after the registration? We also provide accounting, bookkeeping, and monthly tax compliance for startups who want peace of mind from day one.

Send us a message if you want to get started or learn more. No pressure, just good advice.

Settling an Estate? You May Need a CPA Statement.

When filing an Estate Tax Return, the BIR requires a CPA-certified Statement of Assets and Liabilities if the estate meets certain conditions or thresholds set by the tax authorities.

This often applies when the estate includes multiple properties, significant cash or investments, or other high-value assets.

✅ What is a CPA Statement for Estate Tax?
It’s an official report prepared by a licensed CPA that details the assets and liabilities of the deceased. It provides transparency and ensures the proper computation of estate tax obligations.

📌 When is it required?
A CPA Statement is typically required if:
• The estate involves high-value assets
• The BIR checklist includes it during estate tax processing
• There is a need to support asset declarations for tax clearance and title transfer

⸻

PSO Accounting Group offers professional preparation of CPA Statements for estate tax filings. Our team ensures accuracy, compliance, and smooth coordination with BIR requirements.

📩 Message us today to learn more or to request assistance.
We’re here to make estate settlement more manageable for your family.

What happens during a BIR audit?

Lately, we have been receiving a number of inquiries about BIR audits, particularly regarding Letters of Authority (LOA) and the documentary requirements that come with them. For business owners, this process can be stressful, lalo na kapag hindi mo kabisado ang flow at checklist ng BIR.

Here’s a quick guide on what to expect:

Step 1: Letter of Authority (LOA)
This authorizes specific Revenue Officers to examine your books of accounts and tax compliance for a specific taxable year.

Step 2: Checklist of Requirements
Typically includes:
• Trial Balance and Abstract of Accounts
• SEC documents (AOI, By-laws, Cert. of Reg.)
• GIS
• BIR 2307s and tax credit substantiations
• Contracts, agreements, and lease documents
• Inventory lists and depreciation schedules

The BIR usually gives you 10 calendar days to submit everything from the time you receive the checklist.

Tip: Always maintain organized digital and physical copies of your tax records. Being audit-ready saves you time, money, and stress.

If you’re unsure how to respond to an LOA or prepare for a BIR audit, message us. We’ve handled multiple cases across various industries from simple documentation reviews to full-blown tax assessments.