Uncertainty over corporate income tax act sees Wipro put Philippines’ expansion on hold
Wipro Philippines Inc. has put a hold on its local expansion plans as it awaits details of the likely impact of the proposed Corporate Income Tax and Incentive Rationalization Act (CITIRA). Outlining the company’s concerns, country head Aseem Roy said it wants to see policy stability in place and would not be committing to establishing any additional regional sites until the debate regarding the final form of CITIRA was over. He also said that, from the company’s perspective, the current CITIRA bill made little sense and was deterring it from making final decisions with regard to its mooted expansion, while adding that it was down to the government to ensure that any overseas firm operating in the country would not be adversely affected by changes in policy direction.
The India-based business process outsourcing firm currently has offices in Manila and Cebu and employs about 8,000 Filipinos. Last year, the firm hired some 2,000-2,500 local individuals compared to its annual average of 400- 500 people. Noting how well its local operation had performed last year, Roy confirmed the company has no plans at present to exit the country.
