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Information Technology IT-BPM firms have an additional month to transfer their registration from their existing Investment Promotion Agency (IPA) to the Board of Investments (BoI).
The Fiscal Incentives Review Board (FIRB) has issued Resolution #033-22 extending the deadline to December 31, 2022 for IT-BPM companies to obtain their registration from the IPA, which administers the Economic Zone or Free Zone , to be transferred to the BoI where your project resides, by January 31, 2023.
“There is an urgent need to extend the December 31 deadline to give full effect to the intent behind the provisions to allow affected existing Registered Business Entities (RBEs) in the IT BPM sector to flexibly adopt long-term labor regulations with no adverse impact on their fiscal incentives,” FIRB said in the Dec. 23 resolution.
In September, the FIRB approved the transfer of IT-BPM firms to the BoI, which would allow them to adopt up to a 100 percent work from home (WFH) regime with no loss of tax incentives.
The FIRB said only 40% of affected RBEs have submitted their transfer requests, while 640 RBEs have not yet made any submissions.
“The FIRB continues to support the RBEs in the IT-BPM sector by recognizing their need to adopt the WFH and any proposed alternative work arrangements as their business model, which is not against the law,” it added.
The FIRB said RBEs that have already registered with the BoI can now take up to 100% WFH order without losing their incentives.
RBEs registering with the BoI by January 31 are required to submit no deposit for all equipment and other assets brought from the Economic Zone or Freeport Zone until March 31 or until they receive the tax exemption on all their equipment are other assets from the finance department.
Most RBEs in the IT BPM sector are currently registered with the Philippine Economic Zone Authority (PEZA). As of December 15, there were 786 projects approved by PEZA to the BoI. – LMJC Jocson