Converge’s earns tax perks due to ‘missionary project’
Telecommunication service provider Converge ICT Solutions Inc. is granted multiple tax incentives due to rolling out high-speed broadband connections in 1,200 undeveloped and underdeveloped areas nationwide until 2026.
According to the Fiscal Incentives Review Board (FIRB), the “missionary nature” of this project allows the company to receive four years of income tax holiday followed by five years of enhanced deductions or special corporate income tax as laid out in the CREATE Law.
Additionally, Converge is set to have 11 years of duty-free importation of capital equipment, raw materials, spare parts, or accessories starting from its November 2021 registration date.
Converge’s nationwide fiber broadband roll-out is classified as a strategic service in the telecommunications sector in the 2020 Investments Priorities Plan.
The firm is planning to roll out our Fiber-to-the-Home infrastructure — including the terrestrial backbone, distribution networks, ports, and routers – in various sites across the country.
The FIRB recognized that the project connects marginalized areas of the Philippines and uses innovative technology in its fiber network. The multi-year project is also expected to generate direct and indirect jobs in the country.
Converge CEO and Founder Dennis Uy said, “We’re glad that the government appreciates the cutting-edge technology we will be using to bring [the] broadband connection to underdeveloped areas.”
