IT-BPM firms to move out of ecozones
Several Information Technology And Business Process Management (IT-BPM) companies are withdrawing their Philippine Economic Zone Authority (PEZA) membership to keep their work-from-home (WFH) setup.
This decision came after the government required the companies registered under investment promotion agencies (IPAs) — like PEZA — to go back to their offices starting April to keep their incentives.
In an interview with CNN Philippines’ The Exchange, Department of Finance (DOF) Assistant Secretary Paola Alvarez said that they have been suggesting this option to several organizations.
She stated, “What we’ve been telling them is the same incentives if you fall under the BOI-covered incentives under the different tiers then maybe just register with the BOI because that business model works for you.”
While others stated that they are willing to follow the government’s back-to-office order, some had already “deregistered from PEZA” — and other IPAs— to register as normal corporations.
“This is balancing [your] expenses. If you don’t want to move to PEZA because of rent, other expenses then you can opt for the regular corporate income tax,” Alvarez added.
From 2016 to 2019, IT-BPM firms have enjoyed an average of ₱26.30 billion (US$510 million) in total tax incentives because most of them have registered under IPAs in the Philippines.
