Oliver 11 0 0 4 min to read

Up until the year’s end, PEZA-registered IT-BPM companies may switch to BOI.

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Information technology and business process management (IT-BPM) registered in economic zones may transfer their registration to the Board of Investments (BOI) until December 31 of this year to take advantage of the 100% work-from-home (WFH) arrangement, according to the Philippine Economic Zone Authority (PEZA).

The Registered Business Enterprises (RBEs) will be guided by Memorandum Circular 2022-067, according to a statement released by PEZA on Thursday, as they shift from PEZA to BOI.

This is consistent with the Fiscal Incentive Review Board’s (FIRB) September decision to provide complete WFH arrangements for IT-BPM enterprises in PEZA zones provided they transfer their registration to the BOI.

According to the agreement, “BOI will grant a certificate of registration to the transferee RBEs for their conduct of 100 percent WFH, and PEZA will continue to administer the fiscal and non-fiscal incentives to them for the sunset period,” the investment promotion organization said.

Since the transferee RBEs’ registration with the PEZA would not be canceled, the PEZA said that it would continue to have jurisdiction over them.

This indicates that PEZA will continue to track and report on the locators’ performance.

The agency will keep assisting RBEs with investment and revenue-generating activities.

When using the transfer of registration, IT-BPM companies must continue operating inside buildings and IT centers that are registered with PEZA in order for PEZA to retain its control over the RBEs.

Tereso Panga, deputy director general of PEZA and the responsible officer, stated that this is merely a temporary measure for the IT-BPM enterprises to maintain their export enterprise status while utilizing the 100% WFH arrangement with full incentives.

“We hope that a new law or policy will be implemented in the near future to institutionalize hybrid workplace for ecozone IT locators to take advantage of increased WFH threshold with incentives and for the transferee RBEs to retain their PEZA status so they can benefit from the agency’s one-stop service and the favorable business environment at the IT centers,” Panga said.

In order to maintain the competitiveness of our IT sector, we anticipate that PEZA will maintain its mandate to encourage and facilitate investments as well as maintain the unique customs territory status vested in the ecozones.

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