FILE / STOCK
A proposed law which is now waiting for the president’s approval is expected to bring some stability to the country’s office market, which has been significantly hit by the pandemic and the ban on online gaming operations.
In a commentary, property management firm Colliers said that the Create More Act (Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy) will bring benefits to the industry.
“(T)he clarity provided under Create More on key issues such as VAT (value-added tax) exemption, zero-rating, and work-from-home arrangements offers investors greater regulatory stability and transparency, which are crucial in making the country a viable destination to set up business,” the firm said.
READ: Senate approves, ratifies CREATE MORE bill
Colliers added that the provision for 50-percent work-from-home arrangement under the proposed law will affect the office market, mentioning in particular the information technology and business process management (IT-BPM).
“Firms that have applied for the PEZA-BOI (Philippine Economize Zone Authority and Board of Investments) paper transfer in 2023 may now require their employees to return to office to continue enjoying their incentives,” Collier said.
“Once this provision is enacted, (registered business enterprises) that have reduced office footprint may now need to take up office space again to fulfill the onsite work requirement set by their respective (investment promotion agencies),” it added.
Annualized data from property consultant firms have put the vacancy rates in Metro Manila’s office market near 20 percent since the outbreak of the coronavirus pandemic in 2020.
This number is a far cry from the single to low double-digits recorded pre-pandemic.