BUSINESS PROCESS OUTSOURCING firms can proceed work-from-home (WFH) preparations and obtain fiscal incentives if their registration is transferred to the Board of Investments (BoI), Finance Secretary Benjamin E. Diokno stated on Thursday.
“The FIRB (Fiscal Incentives Evaluate Board) met (on Wednesday) and we determined there shall be a easy switch of benefits from the PEZA (Philippine Financial Zone Authority) to BoI, and in order that drawback is solved,” he stated throughout a Senate Finance Committee listening to on Thursday.
“[They have] tax incentives [and] they’ll choose to do earn a living from home,” he added.
There are about 2,000 Data Expertise and Enterprise Processing Administration (IT-BPM) firms registered with PEZA which will switch to BoI.
Finance Undersecretary and FIRB Technical Committee Chairperson Antonette C. Tionko stated the FIRB had agreed that IT-BPM enterprises can proceed their 30% WFH association till end-December, as a result of the state of calamity has been prolonged.
President Ferdinand R. Marcos, Jr. prolonged the nationwide state of calamity to Dec. 31 from Sept. 13, 2022.
“Through the interim between now and December, the BPO corporations which are registered with PEZA shall be allowed to switch their registration to BoI. Even when they switch to BoI, they are going to be having fun with the identical incentives they’ve been having fun with beneath the CREATE (Company Restoration and Tax Incentives for Enterprises) Act,” she stated.
Below Republic Act No. 11534 or CREATE, registered enterprise enterprises, together with IT-BPM firms, should conduct their companies inside financial zones (ecozones) with a purpose to avail themselves of fiscal incentives.
“The incentives proper now beneath CREATE between BoI and PEZA are already mainly the identical,” Ms. Tionko stated, noting that new corporations can merely choose to register with BoI to keep away from jurisdictional necessities with PEZA.
She additionally stated there isn’t any want for IT-BPM firms to depart the PEZA financial zones.
On Sept. 9, the FIRB indefinitely prolonged the WFH association for IT-BPM enterprises in PEZA financial zones.
FIRB Decision No. 017-22, which expired on Sept. 12, allowed IT-BPM firms to have WFH preparations for 30% of their workforce, whereas nonetheless having fun with fiscal incentives assured by the CREATE Act.
The FIRB Decision is certain to CREATE’s implementing guidelines, which require the extension of the state of calamity or a declaration by the president of an distinctive circumstance. — D.G.C. Robles