The Fiscal Incentives Review Board chaired by Finance Secretary Benjamin Diokno is extending the deadline for the transfer of registered information technology and business process management firms to the Board of Investments until Jan. 31, 2023 from Dec. 31, 2022.
The inter-agency board cited in FIRB Resolution No. 033-22 the need to extend the initial Dec. 31, 2022 deadline, as only about 40 percent of the affected IT-BPM firms had successfully submitted the requirements on time. Around 640 RBEs have yet to submit their requirements for the transfer.
Diokno reaffirmed the FIRB’s continued support for IT-BPM enterprises by recognizing the need to adopt flexible work arrangements without adverse effects on the tax incentives they receive.
“We fully support our stakeholders in the IT-BPM sector and grant their request for more time to complete their transfer to the BOI,” Diokno said in a statement Thursday.
“The FIRB is committed to providing any form of assistance to effectively and expeditiously carry out the transfer of the concerned IT-BPM enterprises,” he said.
The FIRB on Sept. 14, 2022 resolved the long-standing work-from-home issue of the IT-BPM sector by accepting the WFH arrangement as the new business model of most registered business enterprises.
Its resolution allows registered business enterprises that already completed their registration transfer with the BOI to adopt 100-percent WFH arrangement without losing incentives or violating Section 309 of the National Internal Revenue Code of 1997, as amended by the Corporate Recovery and Tax Incentives for Enterprises Act.