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The work-from-home arrangement for the information technology and business process management enterprises has been extended until further notice
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The extension will be until the Fiscal Incentives Review Board decides on the Philippine Economic Zone Authority’s request to extend the WFH setup
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PEZA’s request is included in the agenda for the next FIRB meeting set on September 15, 2022
The work-from-home (WFH) arrangement for the information technology and business process management (IT-BPM) enterprises has been extended until further notice, according to the Department of Finance (DOF).
Finance Secretary and Fiscal Incentives Review Board (FIRB) chairperson Benjamin Diokno found it necessary to retain the 70% on-site and 30% WFH arrangement, pursuant to Fiscal Incentives Review Board (FIRB) Resolution No. 017-22, until the FIRB conclusively decides on Philippine Economic Zone Authority’s (PEZA) request to extend the WFH setup.
The FIRB on June 21 issued Resolution No. 017-22, which temporarily allowed registered IT-BPM firms to implement a 70% on-site and 30% WFH arrangement from April 1 until September 12, without adversely affecting their fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
“Considering the September 12, 2022 expiration of the resolution, it is just fair that we extend the WFH arrangement for IT-BPM companies until we finalize a resolution addressing the issue,” said Diokno. DOF said Diokno has issued a memorandum provisionally extending the current setup.
According to Finance undersecretary Antonette Tionko, the WFH extension request of PEZA is already included in the agenda for the next FIRB meeting set on September 15, 2022.
“Given the long-standing issue on the WFH extension for the IT-BPM sector, we hope the decision of the Board will finally bring clarity to the matter,” said Tionko, who also serves as the chairperson of the FIRB Technical Committee.
“We listen to our stakeholders and see the WFH arrangement to be the new business model of most of the registered business enterprises. Hence, the discussion on this matter in the next FIRB meeting requires a more permanent measure from the inter-agency body,” she added.
Under Section 309 of the National Internal Revenue Code of 1997, as amended by CREATE Act, registered business enterprises and/or registered activities must be conducted within the geographical boundaries of the ecozone or freeport where they are located to be entitled to fiscal incentives.
PEZA and the IT & Business Process Association of the Philippines have earlier requested FIRB to allow the implementation of a hybrid work scheme due to concerns of investors and workers amidst the ongoing pandemic until December 2022.
PEZA, meanwhile, has issued Letters of Authority to registered IT-BPM companies and registered business enterprises who want to implement a hybrid work arrangement, or a 30% WFH arrangement, until September 2022.
PEZA said the 30% WFH arrangement is a permissible activity under PEZA, CREATE and Telecommuting laws.
