BIR inspections ‘spooking’ members — IBPAP
The inspections conducted by the Bureau of Internal Revenue (BIR) to confirm the compliance of outsourcing firms with the government’s return-to-office mandate could possibly “spook” members and create confusion within the industry, said IT and Business Process Association of the Philippines (IBPAP).
IBPAP President and CEO Jack Madrid said that they are concerned about the ongoing confusion that the inspections will bring to member companies and employees.
By law, outsourcing companies registered under investment promotion agencies (IPAs) have to conduct all its work within economic zones to avail tax benefits.
FIRB Chairman and Finance Secretary Carlos Dominguez III reiterated that ecozone locators may choose to operate on an expanded WFH basis, but must surrender their fiscal incentives.
Madrid said hybrid work arrangements in the IT-BPM industry are “more than capable” of delivering services to its customers.
“So, I see no better proof of why this hybrid/WFH model works and not to mention also that the IT-BPM industry is one of the large generators of work for Filipinos,” he added.
The BIR recently announced the creation of a task force to inspect economic zone locators for compliance with the eligibility requirements for tax incentives — including on-site work — laid down by Republic Act No. 11534, or the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.
