No more tax holiday for Metro Manila IT-BPM firms by 2020

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IT-BPM companies located in Metro Manila will no longer enjoy income tax holidays (ITH) by 2020, according to Trade and Industry Undersecretary Ceferino S. Rodolfo. The provision is included in the proposed 2017-2019 Investment Priorities Plan (IPP). However, for IT-BPM firms that will locate outside of Metro Manila they will continue to enjoy ITH to encourage dispersal of investments and create employment opportunities in the provinces. The IPP is a list of government preferred economic activities that are entitled to a package of tax and fiscal incentives. The IT-BPM sector has its own blueprint, which has targeted to increase the ratio of BPOs within and outside of Metro Manila to 50:50 from the existing 70:30. The industry, however, may be forced to scrap the target as the Board of Investment wants more workers outside of Metro Manila.