PEZA wants to allow 100% work-from-home for ecozone firms
The Philippine Economic Zone Authority (PEZA) has requested the expansion of the 50-percent work-from-home (WFH) limit in ecozones to as much as 100 percent, giving registered business enterprises (RBEs) more leeway to adjust their operations amid rising fuel prices without forfeiting their government incentives.
In a notice, the investment promotion agency (IPA) said it has formally communicated its request to the Fiscal Incentives Review Board (FIRB) for the implementation of a 100 percent WFH arrangement for RBEs, especially those in the information technology-business process management (IT-BPM) sector.
Pursuant to the business continuity provision of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, the FIRB may allow RBEs to exceed the 50-percent cap to mitigate the impact of national emergencies or major disasters.
PEZA said its request to go beyond the current limit is in line with President Ferdinand “Bongbong” Marcos Jr.’s directive to conserve energy and mitigate the impact of the ongoing conflict in the Middle East on ecozone locators.
Marcos earlier issued Executive Order (EO) No. 110, placing the Philippines under a state of national energy emergency due to the impending threat of tighter oil supply.
Through this order, he encouraged private sector participation in implementing energy conservation measures, such as adopting flexible work arrangements to lessen transportation demand and costs.
In CREATE MORE, RBEs may only implement WFH arrangements for up to 50 percent of their total workforce, subject to the implementing rules and regulations issued by the IPA.
Under this WFH limit, RBEs may still enjoy incentives provided by IPAs, including the income tax holiday, enhanced deductions regime, and duty exemption on importation.
Pending the FIRB’s approval of its request, PEZA said ecozone locators may still apply for a Letter of Authority (LOA) to implement up to 50 percent WFH arrangements.
“PEZA shall continue to accept and process applications for LOAs authorizing WH arrangements of up to 50 percent of the total workforce, on a case-by-case basis,” it said.
According to PEZA, the FIRB has assured the agency that it is working to ensure that responsive and coordinated measures are put in place to support RBEs during the oil crisis.