Ecozone firms to get tax perks for COVID-19 costs
Ecozone locators will now be able to avail of the five per cent gross income tax incentive to include COVID-related expenses as direct costs to maintain operations during the quarantine period.
The Philippine Economic Zone Authority (PEZA) is allowing registered enterprises to consider the following as direct costs expenses incurred to maintain operations during the government-imposed lockdowns: temporary housing or accommodations to employees; shuttle services; port charges; disinfection requirements and personal protective equipment (PPE); as well as coronavirus disease (COVID) tests for employees.
“If the enumerated expense can be directly attributed in providing the PEZA-registered services, then it should be treated as direct cost, otherwise, it is non-deductible,” the Bureau of Internal Revenue (BIR) said in its letter to the PEZA dated Oct.27.
Related news
- BPO firm shuts down office as two employees test positive for COVID-19 · 25 Aug
- Thirteen government agencies and organizations now PEZA’s investment partner · 25 Aug
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
