Companies in the Information Technology and Business Process Management (IT-BPM) sector wishing to avail of tax breaks despite observing a remote work arrangement have until the end of the month to submit their requirements to the Board of Investments (BOI) for a transfer of jurisdiction from economic zones.
The Fiscal Incentives Review Board explained the reason behind the extension of the December 31, 2022 deadline for IT-BPM companies.
“The inter-agency board cited the need to extend the initial December 31, 2022 deadline as only about 40% of the affected RBEs (registered business enterprises) have successfully submitted the requirements on time. Around 640 RBEs have yet to submit their requirements for the transfer,” it said.
Firms which have successfully transferred under the helm of the BOI may permanently offer 100% work from home setup for their employees, a change in protocol that started during the COVID-19 lockdowns in 2020.