The IT and Business Process Association of the Philippines (IBPAP) partly attributed the lower turnout of IT business process management (ITBPMs) or business process outsourcing (BPO) firms that transferred their registration to the Board of Investments (BOI) to the possibility that they will still be allowed to partially operate remotely even if they remain under the Philippine Economic Zone Authority (PEZA).
ITBPAP President Jack Madrid said in response to queries as to the low number of transferees from PEZA to BOI to ensure continued 100 percent work from home operations and enjoy full tax incentives
The reported low number of applicant enterprises seeking the paper transfer may also be due to the expectation of many RBEs on the possible continuing validity of the 30 percent work-from-home (WFH) arrangement enabled by the letters of authority (LOAs) issued by PEZA, said Madrid.
“We were aware of registered business enterprises (RBEs) who would rather not undertake the paper transfer of their registration to BOI and stay solely with PEZA as their investment promotion agency (IPA),” said Madrid.
The matter is currently being clarified by PEZA through a legal opinion sought from the Department of Justice (DOJ).
Based on the PEZA report, it has endorsed a total of 786 ITBPMs to the BOI.
In fact, Madrid said that IBPAP has not received requests from members for extension of the application deadline for registration transfer.
"We have so far not received requests from members asking to extend the 16 December 2022 deadline and we understand that PEZA has already accepted a few applications filed after the said deadline. However, PEZA may not continue to do so in consideration of the long process of reviewing and endorsing submissions in time for the December 2022 deadline of BOI," he said.
The association also expressed appreciation to the initiative of Congressman Joey Salceda asking the Fiscal Incentives Review Board (FIRB) to grant a one-month extension.
No matter how things turn out, Madrid said they will continue to work with government partners towards a resolution that will be for the benefit of the RBEs.
"We truly appreciate how PEZA and BOI have been helping the industry throughout this whole undertaking," he concluded.
it of the RBEs. "We truly appreciate how PEZA and BOI have been helping the industry throughout this whole undertaking," he concluded.