Remote work possible for BPOs that surrender perks - BusinessWorld Online

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THERE IS NOTHING to prevent the Information Technology and Business Process Management (IT-BPM) industry from continuing with remote work arrangements, but must give up their tax incentives, the Department of Finance said.

IT-BPM companies, also known as business process outsourcing organizations, “are allowed to adopt work-from-home arrangements,” Finance Secretary Carlos G. Dominguez III said in a statement on Tuesday. “No one is prohibiting them or impinging on their management prerogative to continue implementing their WFH setups. However, they must give up the tax incentives they currently enjoy because the law is clear on this.

Under the Corporate Recovery and Tax Incentives for Enterprises Law, companies registered with investment promotion agencies are eligible for perks like an option to pay a 5% special corporate income tax in lieu of other taxes, an income tax holiday, and enhanced deductions. Mr. Dominguez noted that extending the WFH concession would be unfair to companies outside ecozones that pay regular taxes. “Other companies such as micro, small and medium enterprises pay the regular corporate income tax rate of 20%, while big corporations pay 25%.”

The Philippine Economic Zone Authority, one of the IPAs, had sought to extend the relaxed enforcement of on-site work rules to September.As of Sunday, 65 million of the target population of 90 million is fully vaccinated, Health Secretary Francisco T. Duque III said, for a vaccination rate of 72%.

 

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