Special InTAX: October 2022 Issue 1 | Volume 1

Fiscal Incentives Review Board

The Fiscal Incentives Review Board (FIRB) issued FIRB Resolution No. 026-2022, 14 September 2022, which further extends the effectivity of FIRB Resolution No. 17-2022 allowing Registered Business Enterprises (RBEs) in the Information Technology—Business Process Management (IT-BPM) sector to adopt work-from-home (WFH) arrangement not exceeding thirty percent (30%) of their total workforce without adversely affecting their income tax incentives under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act from 13 September 2022 to 31 December 2022, provided that the RBEs implementing WFH arrangements shall comply with all the conditions prescribed in FIRB Resolution Nos. 19-21 and 17-22 and relevant issuances.

In addition, RBEs in the IT-BPM sector may be allowed to transfer their registration to the Board of Investments (BOI) from the Investment Promotion Agency (IPA) administering the economic or freeport zone where their project is located until 31 December 2022 and adopt 100% WFH arrangement, provided that the monitoring of the transferee RBEs' compliance and the availment of their remaining incentives shall remain with the concerned IPA administering such economic or freeport zone where they are located. The transfer of registration shall be governed by the guidelines outlined in the resolution.

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

The BOI and concerned IPA in coordination with the FIRB Secretariat shall provide any additional procedures and mechanisms to effectively and expeditiously carry out the said transfer of registration of RBEs in the IT-BPM sector.

Attached is the full texts of the issuance.