Peza seeks extension of WFH arrangements for BPOs

The Philippine Economic Zone Authority (Peza) has urged a review board headed by the Department of Finance to let business process outsourcing firms (BPOs) continue working from home until September without the risk of losing their tax breaks.

Peza asked the Fiscal Incentives Review Board (FIRB) to extend an existing work-from-home policy that is supposed to end in April. Under the current setup, BPOs in economic zones can keep enjoying their tax breaks if at least 10 percent of their workers report in the office.

The proposal to extend now comes with the request to get rid of the 10-percent onsite requirement. It was submitted last Jan. 7, but Peza Director General Charito Plaza said in a statement on Thursday that it has yet to hear from the FIRB more than a month later.

“The approval of the Peza Board of our proposed temporary measure was submitted to the FIRB for further approval as required under the rules. We have yet to receive formal notice on the FIRB’s decision regarding our recommendation,” Plaza said.

Peza wants the policy extended until Sept. 12, which is also supposed to be the last day that the country will be under the state of calamity imposed by the Duterte administration.

The current work-from-home policy in BPOs was made possible under the implementing rules and regulations (IRR) of the Corporate Recovery and Tax Incentives for Enterprises Act.

The law cut the corporate income tax and rationalized the tax breaks offered by agencies like Peza. Its IRR included a rule on “temporary measures for exceptional circumstances” like a pandemic.

While Peza’s proposal also includes a request to be allowed to make its own guidelines on remote work, the agency emphasized that the policy would only be temporary. It also appealed to the FIRB not to impose any penalties.