PEZA to iron out tax incentives issue with BIR, BOC
The Philippine Economic Zone Authority (PEZA) will be working on resolving any incentives issue that will be raised by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) on the implementation of a hybrid work model for its registered business enterprises (RBEs).
In a statement, PEZA Director-General Charito Plaza said that they will be writing to the BIR and BOC about the legal basis for their hybrid work ratio that they had created.
This statement was made after Department of Trade and Industry (DTI) Secretary Ramon Lopez raised the possibility of the BIR questioning the tax incentives of PEZA members who will apply for a hybrid work model.
So far, there are 400 RBEs who have applied for PEZA’s Letter of Authority (LOA) to continue implementing a 70:30 hybrid work arrangement.
The ecozone authority noted that this will only be in effect until September this year, in time for the expiration of the declaration of the state of national health emergency by President Rodrigo Duterte.
Despite the preference for hybrid work, Plaza said that there has been an increase in capacities for PEZA IT Parks/Buildings/Centers.
“This means there are new IT-BPO companies which grew during the pandemic as virtual/digitalized economy is now the world’s normal,” Plaza concluded.
