PH urged to amend BPO tax policies
Global research firm Everest Group is encouraging the Philippines to “reimagine” its policies and tax breaks so they would not get left behind in the global Business Process Outsourcing (BPO) market.
In an interview with Inquirer, Everest Group Vice President Prashray Kala said that the government has to prioritize “what needs to be done to enable remote working.”
He added that aside from amending several policies, the country has to work on gaining better internet connectivity to support hybrid work in numerous BPO companies.
In the Philippines, most BPO offices are located in economic zones so their tax breaks are tied to physical space. This means that to maintain their income tax holidays, companies have to get their people back in the office starting April.
Kala added that the Philippines could risk losing businesses if it will not change its incentive policies and provide the right infrastructure for remote working.