MANILA - The Fiscal Incentives Review Board (FIRB) has extended the deadline for the transfer of the Information Technology and Business Process Management (IT-BPM) sector to the Board of Investments (BOI) until Jan. 31, 2023, the Department of Finance said Thursday.
The IT-BPM sector, which includes Business Process Outsourcing (BPO), was given the chance to transfer from the Philippine Economic Zone Authority (PEZA) to BOI in order to pursue remote work arrangements while maintaining their tax incentives.
Ecozone locators in late 2022 were ordered to return to site for their business activities as mandated by law or lose their incentives. But some BPO firms opted to support work-from-home and hybrid work arrangements.
The initial deadline was set on Dec. 31, 2022. However, only about 40 percent of affected firms have submitted the requirements on time, the DOF said, adding that 640 more are expected to submit their documents for the transfer.
Finance Secretary and FIRB Chairman Benjamin Diokno said the move reaffirms the government's commitment to supporting the industry by recognizing the need to adapt flexible work arrangements without adverse effects on their tax incentives.
“We fully support our stakeholders in the IT-BPM sector and grant their request for more time to complete their transfer to the BOI,” Diokno said.
“The FIRB is committed to providing any form of assistance to effectively and expeditiously carry out the transfer of the concerned IT-BPM enterprises,” he added.
The DOF said the FIRB in September accepted the WFH arrangement as the new business model for registered business enterprises.
Those who have completed their transfer to the BPI will be allowed to adopt 100 percent WFH arrangements without losing incentives, the DOF said.