The Department of Trade and Industry (DTI) said the 100-percent work-from-home (WFH) privilege will apply to future information technology-business process management (IT-BPM) registrants to the Board of Investments (BOI) even if they locate in economic zones.
DTI Secretary Alfredo Pascual told reporters as agreed at the Fiscal Incentives Review Board (FIRB) meeting on September 14, IT-BPM firms in economic zones can adopt up to 100 percent WFH arrangement and still enjoy tax incentives.
Pascual said IT-BPM companies can become eligible for increased WFH setup by shifting their registration from the Philippine Economic Zone Authority (PEZA) to the BOI. Pascual is co-chair of FIRB and chair of both PEZA and BOI.
“The up to 100 percent WFH scheme would also be available to IT-BPM firms that will be registered for tax incentives in the future,” Pascual said.
Pascual assured the procedure for transfer of registration from PEZA to BOI will be seamless and will be carried out expeditiously.
Registered firms must signify with PEZA their intention to shift registration to the BOI. PEZA will then endorse the request to the BOI for the issuance of a Certificate of Registration, which will indicate the remaining incentives.
PEZA shall administer the incentives and continue monitoring the transferee firms’ compliance.
Pascual said the agreed arrangement on WFH was one of the options presented by the DTI to the FIRB, which is chaired by Finance Secretary Benjamin Diokno, in recognition of the IT-BPM sector’s contributions to generating jobs and foreign exchange revenues for the country.
“From the beginning, our priority has been to secure a solution for the sector’s WFH setup, which has become the new normal post-pandemic,” Pascual said.
Tereso Panga, officer-in-charge director-general of PEZA the transfer of registration is just an interim arrangement to preserve the incentives of the IT-BPM locators while availing of WFH in their designated centers.
“A more permanent solution is the proposed bill that will allow the PEZA IT locators to avail of WFH with incentives that will put them on an equal footing with the BOI registered business enterprises,” Panga said.
He noted the decision will make the Philippines competitive with India for global ICT investors.
“We are happy with this interim solution on wfh extension until Dec.31, 2022. We are working closely with FIRB as we align to our current policies and the best interest of our industries that will keep, expand and grow our IT sector in the country,” Panga said. – Irma Isip
