PEZA wants WFH for IT–BPO extended

MANILA, Philippines — The Philippine Economic Zone Authority (PEZA) wants registered information technology - business process outsourcing (IT-BPO) firms to continue to implement the work-from-home (WFH) scheme while enjoying incentives until September.

The investment promotion agency (IPA) said its board is seeking the approval of the Fiscal Incentives Review Board (FIRB) to allow IT-BPO firms to continue their WFH arrangement without the required 10 percent on-site capacity and without diminution of fiscal incentives until Sept.12.

The PEZA cited Rule 23 of the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Enterprises Act which allows IPAs to implement temporary measures to support the recovery of registered business enterprises (RBEs) from exceptional circumstances, upon approval of the FIRB.

Exceptional circumstances include a pandemic, epidemic, war, armed conflict, state of national health emergency, outbreak of diseases, international or regional financial crisis, major disaster such as volcanic eruption, earthquake and super typhoon.

The FIRB is chaired by Finance Secretary Carlos Dominguez and co-chaired by Trade Secretary Ramon Lopez.

Under FIRB Resolution 19-2021 issued last year, IT-BPO firms are allowed to continue WFH arrangements without affecting their fiscal incentives until March 31 this year.

PEZA said it is also proposing other temporary measures such as allowing the movement of IT equipment and assets as long as the same is covered by surety bond and appropriate PEZA permits.

It said there would be no limit on the number of IT equipment, provided RBEs comply with the surety bond and permits.

In addition, PEZA wants to be authorized to craft its own guidelines for the WFH arrangement, given that it is the biggest IPA in terms of number of enterprises and the multiple IT centers/buildings under its jurisdiction, which do not apply to other IPAs and/or economic zone authorities.

“The proposal of PEZA is merely temporary in consideration of the ongoing pandemic,” PEZA director general Charito Plaza said.

PEZA is also calling for the non-imposition of the penalties under FIRB Resolution 19-21 given its possible implications.