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Friday, March 29, 2024

PEZA endorses 786 firms’ registration transfer to BOI

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About 786 companies with combined investments of P98 billion sought the transfer of their registration from the Philippine Economic Zone Authority to the Board of Investments to avail of fiscal incentives while continuing the work-from-home arrangement for their employees.

The Department of Trade and Industry earlier issued Memorandum Circular No. 22-19 to implement the registration transfer of mostly information technology-business process management companies. The affected firms were given until Dec. 16 to file their request for the transfer of registration from PEZA to BOI to adopt 100-percent WFH arrangement without losing their tax incentives.

The Fiscal Incentives Review Board allowed the lateral transfer of the firms’ registration because of PEZA’s restrictions on WFH arrangement. The BOI allows 100-percent WFH and does not require enterprises to locate in an economic zone. The transferees, however, are still required to maintain an office inside a PEZA-registered building/ecozone.

PEZA said it endorsed 786 companies to the BOI as of Dec. 15, including 627 that already received their certificate of registration from the BOI.

“We have not discussed yet if we can move the deadline of application…We still need to assess the numbers, but so far, we’re working within that deadline,” said BOI managing head Ceferino Rodolfo in a briefing with reporters.
He said the BOI would closely coordinate with the IT-Business Process Association of the Philippines to expedite the application process and assessment.

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PEZA earlier closed the agency’s deadline for application on Dec. 16, 2022 to provide ample time to assess the applications.

Meanwhile, PEZA clarified the confusion over the appointment of new roles in the agency. Acting PEZA deputy director-general for administration and finance Aleem Siddiqui Guiapal said acting PEZA director-general Tereso Panga would keep his designation based on the latest DO 22-16 issued by the Department of Trade and Industry.

The latest DO assigned Aldaba as supervising undersecretary of PEZA “for purposes of policy ad program coordination.”
The BOI also issued a clarification on the proposed executive order reducing tariffs on imported electric vehicles to zero. It said the order would cover pure EVs and exclude hybrid vehicles.

Hybrid and self-charging vehicles will not support the need to develop the infrastructure for EV manufacturing in the country, Rodolfo said. The EO was among the unfulfilled measures under the Duterte administration.

More than 10 EV companies from four countries expressed keen interest to explore opportunities in the Philippines following the signing of Republic Act No. 11697 or the Electric Vehicle Industry Development Act.

More than 20 EV stakeholders, mostly Chinese firms, are already operating in the country and employ over 7,000 workers. These include importers and manufacturers of e-jeepneys, e-trikes, e-cars, e-SUVs, e-bus and e-utility vehicles.

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