Tax Alert No. 52 [Fiscal Incentives Review Board (FIRB) Resolution No. 026-22 dated 14 September 2022]

Extending the 30:70 WFH arrangement and the transfer of registration of existing RBEs in the IT-BPM to BOI

The effectivity of Fiscal Incentives Review Board (FIRB) Resolution No. 017-22, allowing registered business enterprises (RBEs) in the Information Technology-Business Process Management (IT-BPM) sector a 30:70 work from home arrangement (WFH), has been extended from 13 September 2022 until 31 December 2022 subject to compliance with the prescribed conditions. 

The Resolution also allowed the transfer of the affected RBEs in the IT-BPM sector to the Board of Investments (BOI) from the Investment Promotion Agency (IPA) administering an economic zone or freeport zone where their project is located until 31 December 2022, and the adoption of up to 100% WFH arrangement. 

The following guidelines shall govern the transfer of registration: 

1. RBEs in the IT-BPM sector shall signify to the concerned IPA of their intention to transfer to BOI; 
2. Concerned IPA shall prepare an endorsement to BOI containing the following basic information:

   • Registration Details (Certificate of Registration, Date of Registration, and Registered Activity with corresponding PSIC Code), 

   • Remaining Tax Incentives, and 

   • Status of compliance with registration terms and conditions; 

3. BOI shall issue the BOI Certificate of Registration (CR) indicating the remaining tax incentives of the project; Provided that the current Cost Benefit Analysis for new projects shall no longer be applied to the transferee RBEs; and
4. Concerned IPA shall monitor compliance of transferee RBEs and submit a report to the BOI in relation to the BOI CRs issued. 

Additional procedures and mechanisms may be subsequently provided, as necessary. 

The existing registered project of the transferee RBEs shall not be entitled to additional incentives after the lapse of the periods of the remaining tax incentives. However, RBEs may be eligible to apply if the activity is listed in the Strategic Investment Priority Plan and there is a new investment or qualified expansion. 

You may access the full version of this issuance through the FIRB website.