Business Process Outsourcing (BPO) provider Concentrix is ready to lose its tax incentives from the Philippine government as they allow 60% of their employees to continue working from home.
Concentrix Regional General Counsel in the Asia and Pacific Michael Montero said that they kept a hybrid work setup for their 100,000 workforce due to “practical reasons.”
Montero explained that most of their clients believe that a hybrid setup is “more insulated from the risks” in case of another COVID-19 outbreak.
Additionally, when the company surveyed 10,000 of its workers last March, 80% of respondents said that a return-to-office order would affect their decision to stay in the industry.
“We tied those two [conclusions] together. The clients are the ones who prefer it. The employees also want it,” Montero stated. “By and large, we need to retain the status quo.”
But keeping a hybrid work setup would mean letting go of tax breaks, including a five per cent gross income earned tax, and instead, paying a 25% corporate income tax.
The Fiscal Incentives Review Board (FIRB), which oversees the grant of tax breaks to qualified businesses, required all IT-BPO companies to go back to their offices on April 1.