Tax incentives could be given to employers with a WFH program
Philippine Senators Sherwin Gatchalian and Francis Tolentino filed Senate Bill No. 1706 which proposes a 50% income tax deduction for employers who will implement a work-from-home program in their operations.
In a statement, Gatchalian said that this bill could encourage more businesses to adopt flexible work arrangements for their employees.
The senator noted that under Republic Act No. 11165, or the “Telecommuting Act,” an employer in the private sector may offer a telecommuting program to its employees on a voluntary basis, and upon such terms and conditions as they may mutually agree upon.
“This is the new normal and working remotely can prove to be as productive as those working in an office setting,” he stated.
Employees, for their part, could also gain a P25.00 (US$0.45) reduction from their taxable income for every hour of work rendered under a WFH arrangement.
Both senators are also proposing the allowances that cover the expenses necessary for remote working — not exceeding P2,000 (US$35.84) per month — to become non-taxable.
Related news
- Digital payments up 30.3% in 2021 · 7 Jul
- Digitalization to benefit PH’s ESG initiatives · 7 Jul
- PH firm’s Q3 outlook bearish — BSP survey · 6 Jul
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.
