The Philippine Economic Zone Authority (PEZA) seeks to restore all incentives it grants to locators and be on equal footing with the Board of Investments (BOI) on work-from-home privileges.
PEZA deputy director-general Vivian Santos said PEZA is anticipating a favorable opinion from the Department of Justice (DOJ) resolving the conflicting provisions on various issuances, such as value-added tax (VAT) zero rating as well as WFH setup for PEZA registered business enterprises (RBEs).
But Santos said eventually a bill amending the PEZA law as well as a revisit of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) would remove all the inconsistencies created by revenue memorandum circulars issued by the Bureau of Internal Revenue.
This way, she said, PEZA will restore all incentives for its locators aligned with the provisions of CREATE.
PEZA is also pushing for the issuance by the Department of Trade and Industry and the Fiscal Incentives Review Board granting PEZA RBEs the same WFH privileges, now enjoyed by BOI RBEs up to 100 percent.
Santos said PEZA made a presentation to Congress to both committees on economic affairs and on trade and industry whose members expressed support to PEZA.
She said Rep. Joey Salceda, chair of the House ways and means committee, last Monday conducted a hearing on the bill filed by Rep. Gloria Macapagal-Arroyo for the continued entitlement of VAT exemption on importation of PEZA RBEs and zero VAT on local purchases.
The exemption were removed by the BIR.
“The bill will restore everything,” said Santos. – Irma Isip
