The Philippine Economic Zone Authority (PEZA) has given information technology-business process management (IT-BPM) registered business enterprises (RBEs) until December 16 to submit their application for paper transfer of registration to the Board of Investments (BOI).
But PEZA deputy director general Vivian Santos in a press briefing expressed fear new and expanding RBEs in IT-BPM may in the future opt to register permanently to the BOI once the existing sunset provision for enjoying existing incentives prior to the effectivity of the Corporate Recovery and Tax Incentives for Enterprises ends in 2031. CREATE equalizes the incentives given to BOI and PEZA, the latter having more superior tax breaks at present.
“Once they graduate from PEZA under the sunset provision, the paper transfer could be for good because we will no longer be able to grant incentives,” Santos said.
Santos said PEA as of December 12 received 351 out of 1,088 applications for transfer.
Santos said the BOI will not give extension to the deadline for the endorsement of transferees set Dec. 31, 2022 under a memorandum circular issued by the Department of Trade and Industry.
“The effectivity of the paper transfer which will allow IT-BPM companies implement 100-percent work -from-home is January 1,” Santos said.
She assured those which moved their registration will continue to receive all incentives fiscal and non fiscal facilitated by PEZA.
“BOI said there is no double dipping. The incentives PEZA will administer to them the same incentives they have been enjoying before,” Santos said. – Irma Isip
