News » DOF orders LGUs to stop imposing taxes on WFH BPO employees

DOF orders LGUs to stop imposing taxes on WFH BPO employees

DOF orders LGUs to stop imposing taxes on WFH BPO employees

Local government units (LGUs) can no longer collect taxes from employees who are working from home, as mandated by The Department of Finance (DOF).

Finance undersecretary Antonette Tionko said that it had come to DOF’s attention that local government units (LGUs) had been collecting local business tax from business process outsourcing (BPO) employees in work-from-home set-up.  

Tinoko said that DOF found out that some of these BPO workers are being required to secure a mayor’s permit.

The Finance official said local taxes should not be imposed on BPO employees working from home. “There are certain LGUs which have a wrong interpretation” of tax laws, she said.

As such, the DOF will come out with a local finance circular, through its Bureau of Local Government Finance (BLGF), which will clarify to LGUs the taxation of BPOs with a work-from-home set-up.

Read more here.


Start your
journey today

  • Independent
  • Free
  • Transparent

About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO)

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between Philippines outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 900+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

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.