PEZA Supports BoI 163 IT BPM Companies

MORE THAN 100 information technology and business process management (IT-BPM) projects worth nearly 14 billion pesos have been approved by the Philippine Economic Zone Authority (PEZA) for Board of Investment (BoI) registration.

BoI said in a statement that it is processing 55 of the 163 projects for which an administration fee has been paid. The total cost of all projects amounted to 13.9 billion pesos.

This is in line with the transfer of IT BPM companies to the BoI from PEZA under the Fiscal Incentive Review Board (FIRB) resolution, which allowed them to maintain their benefits as well as implement work-from-home arrangements.

Due to the Covid-19 pandemic, IT BPM firms have been allowed to implement work-from-home or hybrid work arrangements, despite the Corporate Recovery and Enterprise Tax Relief (Creation) Act, which requires only companies to benefit from the benefits. operating within the economic zone.

In October, the Department of Trade and Industry issued Circular Memorandum 22-19, which clarified the FIRB resolution. Registered Business Enterprises (RBEs) must transfer their registrations to the BoI by the end of the year, he said.

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Those who “do not exercise the option” will no longer be allowed to register and are subject to section 309 “Creations,” the Commerce Department said in a statement.

Fiscal and non-tax incentives enjoyed by RBEs upon their initial registration or under the Internal Revenue Code or other laws “will not be affected, provided that registration with the relevant IPA (Investment Promotion Agency) is supported by the covered RBE.”

“After the remaining tax credit period has expired, an existing RBE-covered registered project is not eligible for additional exemptions, unless the activity qualifies as a new investment or qualified expansion under the Priority Investment Strategic Plan (SIPP), subject to a separate registration application,” – added to the Department of Commerce.