The Department of Finance (DOF) said business process outsourcing (BPO) firms will retain their VAT exemptions and zero-rated status despite the implementation of the government’s Comprehensive Tax Reform Program. DOF Undersecretary Karl Kendrick Chua said the fear that the Philippine BPO industry will lose its competitiveness because of the proposed tax reform has no basis. He said there is no change in tax policy for exporters, including BPO companies. BPO firms in special economic zones will continue to enjoy VAT exemption while those outside the zone will retain their zero-rated status.
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About Derek Gallimore
Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.
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