The Department of Finance (DOF) said the return of information technology-business process management (IT-BPM) employees to on-site work would benefit local micro, small, and medium enterprises (MSMEs).
In a statement on Wednesday, March 9, Finance Secretary Carlos G. Dominguez III defended the Fiscal Incentives Review Board’s (FIRB) decision not to extend the work-from-home (WFH) arrangements for IT-BPM enterprises.
FIRB Resolution No. 19-21 that allows WFH arrangement not exceeding 90 percent of the total workforce of registered IIT-BPM enterprises is set to end on March 31, 2022.
Dominguez said denying the extension request is in sync with the government’s strategy to safely reopen the economy and stimulate business revival in the country.
“The employees’ return to the office would provide more opportunities and pave the way for the recovery of local micro, small, and medium enterprises (MSMEs) that depend on IT-BPM employees for their livelihood,” Dominguez said.
He also pointed out that WFH arrangement is only a time-bound temporary measure adopted during the surge of the Covid-19 pandemic.
“Given the increasing vaccination rate of Filipinos nationwide, we can now undertake safe measures for physical reporting of employees, including those working in the IT-BPM firms operating within ecozones and freeports,” said Dominguez, who is also FIRB chair.
The decision of the Cabinet-level interagency board to stand by the FIRB Resolution No. 19-21 denies the request of certain groups to implement extensions to the adoption of the WFH arrangement for the IT-BPM sector until after March 2022.
Meanwhile, the FIRB also disapproved the request for the lifting of the moratorium on ecozone development in Metro Manila.
The Board stood firm on the Duterte administration’s thrust to increase investments outside Metro Manila, and emphasized that Administrative Order (AO) No. 18 still complements the government’s strategies and policies on rural development.
To recall, the Philippine Economic Zone Authority, an investment promotion agency where several IT-BPM firms are locating to enjoy fiscal incentives, has been pushing to extend the WFH arrangements for companies located in economic zones until Sept. 12, 2022.
Enterprises located in economic zones that fail to comply with the FIRB's rules cannot enjoy fiscal incentives such as income tax holidays and five percent tax on gross income earned.