New BPO firms will no longer enjoy special tax rate

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New companies that will invest in business process outsourcing (BPO) this year will no longer enjoy the previous special tax rate. This development was announced by the Bureau of Internal Revenue (BIR) following the implementation of the new tax reform law that was passed December last year. Meanwhile, in a tax advisory dated 31 January, BIR Commissioner Caesar Dulay announced that the workers employed by regional operating headquarters and regional headquarters (ROHQs and RHQs) are now also subject to regular income tax rates. However, those ROHQs and RHQs that have already been established before 2018 can still retain the preferential tax rate (PTR).

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