(FIRB Resolution No. 033-2022, dated December 23, 2022)
This Tax Alert is issued to inform all concerned taxpayers on the extension of the deadline for the transfer of registration of Registered Business Enterprises (RBEs) under the Information Technology-Business Process Management (IT-BPM) sector to the Board of Investments (BOI).
Pursuant to FIRB Resolution No. 026-2022, RBEs in the IT-BPM sector may be allowed to transfer their registration from an Investment Promotion Agency (IPA) administering an ecozone or freeport zone (e.g. PEZA) to the BOI and adopt up to 100% WFH arrangement without adversely affecting its fiscal incentives. Such RBEs originally have until December 16, 2022 to submit their applications to PEZA.
To give full effect to the intent behind the provisions of FIRB Resolution No. 026-2022, the effectivity of the provisions allowing RBEs in the IT-BPM sector to transfer their registration to the BOI is extended until January 31, 2023.
Affected RBEs which are already registered with the BOI may already adopt 100% work from home (WFH) arrangement without loss of incentives upon completion of their registration with the BOI and shall not be required to post bond. IT-BPM RBEs that will opt to register with the BOI from January 1 to 31, 2023 shall also not be required to post a bond for assets brought outside the economic or freeport zone until they secure the Tax Exemption Indorsement for all their equipment and other assets from the Department of Finance (DOF) Revenue Office or until March 31, 2023, whichever is earlier.
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