Tax Notes: Firb extends work-from-home arrangements until Dec. 31, 2022

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Last Sept. 15, 2022, the Fiscal Incentives Review Board (Firb) granted the extension of the 70-30 work-from-home arrangement, wherein 70 percent of the total workforce are required to report within the premises of the Philippine Economic Zone Authority (Peza)-registered Information Technology (IT)-Business Process Management (BPM) entities while 30 percent of the total workforce are allowed to work from home until Dec. 31, 2022.

Originally, the Firb issued Resolution 017-22, which allowed registered business enterprises of the IT-BPM sector to continue implementing work-from-home arrangements without adversely affecting their fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises Act from April 1, 2022 until Sept. 12, 2022.

The extension of the work-from-home arrangement was based on the extension of the country’s pandemic-prompted state of calamity from Sept. 12, 2022 to Dec. 31, 2022.

Prior to the announcement of the extension, Peza issued Peza Memorandum Circular 2022-061 on Sept. 9, 2022, temporarily maintaining the status quo of the 70-30 work-from-home arrangement while waiting for the Firb’s decision on the Peza’s request to extend the remote work arrangement.

With the extension of the work-from-home arrangement, Peza-registered IT-BPM entities which are processing their registration with the Board of Investments are allowed to enjoy their tax incentives while ensuring a smooth transition from remote to onsite work.

Please be guided accordingly.

Source:

P&A Grant Thornton

Certified Public Accountants