MANILA, Philippines – Information technology and business process management companies in special economic zones will be allowed to deploy equipment, which was previously prohibited from removing from company premises due to their duty-free status, to support increased part of your employees work from home. .
So said the Fiscal Incentive Review Board (FIRB), which recently released guidelines that allow IT and BPM companies in economic zones to adopt a 90 percent work-from-home arrangement through March 31, 2022 due to to the COVID-19 pandemic.
The policy was established by the agency to address labor limitations caused by the pandemic in accordance with the implementing rules and regulations of the Corporate Recovery and Tax Incentives for Companies Act, which gives investment promotion agencies the authority to implement temporary measures whenever necessary. FIRB approved to help registered business companies recover from a pandemic, national emergencies or major disasters.
Signed by the Secretary of Finance and President of the FIRB, Carlos Domínguez III, the memorandum granted firms registered in the IT-BPM sector until the end of this month to present to their respective investment promotion agencies their total number of employees and the number of employees under the WFH agreement.
They were also asked to submit a detailed list of laptops, desktops, and other equipment and assets that were removed from the economic zones or the free port.
This list should include the amount of the assets, their acquisition cost and book value, and the amount of the bond paid to cover 150 percent of the amount of taxes and duties, if imported, and value added tax. , if it is of local origin, of the equipment and assets extracted from the ecozones.
“Bonds will be posted for all equipment deployed by registered business companies in the homes of their employees, to guarantee payment of taxes and duties if said equipment is not returned to the site of the [company] after the WFH settlement, ”said the memorandum addressed to the companies.
In addition, the guidelines require that, within five days after the close of each month, registered firms submit to their investment promotion agencies a report on any additional equipment and other assets extracted from the economic zones or the free port, and the current total number of employees and number of employees under the WFH arrangement.
The companies have until the end of this month to present to their investment agencies a certification that the export requirement and the number of employees will be maintained.
“Failure to comply with the conditions may result in the suspension, withdrawal or cancellation of the tax incentives of the [companies], ”According to the memo.
According to the agency’s resolution, the WFH settlement will be allowed until January 1, 2022, after which a 75 percent cap will be imposed until March 31, 2022. If the state of calamity extends further Beyond January 1, 2023, the ceiling will remain at 90 percent until the end of March 2022.
President Duterte recently extended the state of calamity in the country until September 12, 2022.
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