Dev’t of BPO office spaces seen to continue

MANILA, Philippines - Development of office spaces for business process outsourcing (BPO) firms in Metro Manila are likely to continue despite rules released by the Philippine Economic Zone Authority (PEZA) which removes incentives for developers of information technology (IT) facilities in the National Capital Region and Cebu City, property consultancy firm Colliers International said.

Colliers International associate director Julius Guevara said in an interview that development of office spaces for BPOs in Metro Manila are likely to continue despite PEZA’s amended rules on incentives for developers of IT facilities and parks in the area, given sustained demand from outsourcing and off-shore industry on the back of favorable economic conditions here.

“The benefits overcome PEZA incentives,” he said.

In September, the PEZA released Resolution No. 12-329 which stated that IT facility projects in the first four PEZA-registered IT parks in Metro Manila such as Eastwood City Cyberpark in Quezon City, Northgate Cyber Zone in Muntinlupa City, Robinson’s Cyberpark along EDSA (Epifanio delos Santos Ave.) and E-Square IT Park in Taguig City, as well as the Cebu I.T. Park would no longer be entitled to incentives.

Developers of IT facilities in Metro Manila and Cebu were previously given an incentive of paying only five percent tax on gross income in lieu of national taxes.

Developers or operators of new IT parks and centers to be located outside Metro Manila and Cebu, meanwhile, would continue to enjoy the special five percent tax on gross income incentive.

The PEZA’s move was intended to encourage developers to put up IT facilities in areas outside of Metro Manila and Cebu and provide employment opportunities there.