WFH in IT-BPOs may continue without tax perks – DOF
The Department of Finance (DOF) Secretary Carlos Dominguez III said that the continuation of work-from-home (WFH) arrangements would be up to the employers, but they would need to surrender their tax incentives.
Dominguez, who also chairs the Fiscal Incentives Review Board (FIRB), stated that IPA-registered BPO players who will allow employees to prolong working from home “must give up the tax incentives they currently enjoy because the law is clear on this.”
Pointing out Section 309 of the Tax Code, the DOF official noted that incentives given to Business Process Outsourcing firms registered in any Investment Promotion Agency (IPA) are tied to their physical offices.
Dominguez added that allowing BPO companies to continue working remotely would be “unfair to other companies outside ecozones that are paying regular taxes.”
Moreover, resuming “regular” operations would not only help the economy recover but also boost the MSMEs that support the IT-BPM industry.
Starting April 1, outsourcing agencies are required to report back to their offices, with 70% of the total workforce on-site, while the remaining 30% can work remotely anywhere.
