55 IT-BPM companies sign up for a full telework agreement with BOI

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The Board of Investments (BOI) is currently processing 55 projects in the information technology and business process management (IT-BPM) sector that have registered with the BOI to adopt up to 100% working from home (WFH).

“As of November 17, 2022, the Philippine Economic Zone Authority (Peza) has approved for BOI registration 163 projects in the IT-BPM sector with a total investment of 13.9 billion pesos,” said the Department of Trade and Industry (DTI). said in a press release issued on Monday.

However, the DTI, as the parent agency of the BOI, revealed that out of the 163 projects, the BOI is currently processing only 55 projects, which it says have already paid the administrative costs.

The DTI said Registered Business Enterprises (RBEs) that can exercise the option to register with the BOI are: RBEs that have remaining tax incentives under Section 311 of the Business Reorganization Act and tax incentives for businesses (CREATE); and RBEs with incentives approved no later than September 14 under the CREATE Act with the relevant Investment Promotion Agency (IPA), especially those currently registered with Peza, who intend to register with the BOI.

In accordance with DTI Circular No. 22-19, supported by the Fiscal Incentives Review Board (FIRB), published on October 18, RBEs have until December 31, 2022 to exercise the option to register with the BOI. .

However, those who have not exercised the option will no longer be permitted to register and will be covered by Section 309 of CREATE.

Section 309 of Republic Act No. 11534 or the CREATE Act states: “A registered project or activity qualified under an investment promotion agency administering an economic zone or freeport shall be exclusively conducted or operated within the geographical boundaries of the zone or free port administered by the Investment Promotion Agency with which the project or activity is registered.

IT and Business Process Association of the Philippines (IBPAP) President Jack Madrid said last June that continued study and possible modification of Section 309 of CREATE may better respond to implementation. long-term work from home (WFH) or hybrid work.

Section 309 applies to RBEs registered with Peza. Meanwhile, the BOI is the only IPA not affected by bounding constraints or area limits.

Within 30 days of the issue of the BOI Registration Certificate, the DTI called RBE concerned sends the API concerned: the list of equipment and/or other assets taken out of the economic zones or Freeport, including the number laptops, desktops or other assets; the acquisition cost, book value and year of acquisition of equipment and other assets; and the total number of employees and the number of employees under the telework agreement.

While some RBEs have taken advantage of Peza’s paper transfer record to BOI, the Peza noted in October that it would retain tracking and reporting of subject locator performance and for other compliance requirements.

“As these covered RBEs will not cancel their registration with Peza, the agency will remain whole with its investment facilitation and revenue generation functions,” Peza said in a statement released last month.

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