The Fiscal Incentives Review Board chaired by Finance Secretary Benjamin Diokno said Thursday it is still studying the extension of the work-from-home arrangement for the information technology and business process management sector proposed by the Philippine Economic Zone Authority.
A position paper submitted to Diokno by the FIRB Secretariat said PEZA’s decision to extend the work-from-home setup of the IT-BPM enterprises until March 2023 lacked legal basis.
“To date, the current and effective resolution issued by the FIRB states that the WFH arrangement for the IT-BPM companies within the ecozones is only until Sept. 12, 2022,” Finance Assistant Secretary and FIRB Secretariat head Juvy Danofrata said.
Danofrata said neither the Corporate Recovery and Tax Incentives for Enterprises Act nor the previous FIRB resolution give any investment promotion agency, including PEZA, the power to unilaterally allow the adoption of WFH arrangements.
She said any move to extend the WFH arrangement beyond Sept. 12 would need the approval of the Cabinet-level interagency body through a resolution.
Danofrata the resolution should be anchored on the extension of the state of calamity or a declaration of the President of an exceptional circumstance, with Rule 23 of the CREATE Act IRR prevailing as the legal basis.
Danofrata said the FIRB Secretariat was coordinating with the Board of Investments in studying the options to allow the WFH arrangements for PEZA’s locators in the IT-BPM sector.
She said the FIRB would deliberate on the matter on its next meeting in mid-September.
Diokno, in a previous meeting, cited the importance of ensuring compliance among the FIRB stakeholders, including the IT-BPM locators, with the provisions under the CREATE Act to achieve an effective tax incentives regime in the country.
“It is crucial that the locators in economic zones comply with the ongoing terms and conditions of their registration in order to continue receiving tax incentives as IPA-accredited businesses,” Diokno said.