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Business

IBPAP welcomes transfer of IT firms registration to BOI

Catherine Talavera - The Philippine Star

MANILA, Philippines — The Information Technology and Business Process Association of the Philippines (IBPAP) welcomed the Fiscal Incentives Review Board (FIRB)’s move to facilitate the smooth paper transfer of the registration of information technology firms from the Philippine Economic Zone Authority (PEZA) to the Board of Investments (BOI).

“After two years of making a case for what the benefits of work from home (WFH) / hybrid work are, it is great news that the FIRB will be facilitating a smooth paper transfer of the registration of IT-BPM enterprises from PEZA to the BOI,” IBPAP president and CEO Jack Madrid said in a statement yesterday.

Madrid explained that this would not involve physically relocating their operations or giving up the incentives that they enjoy.

“This is a wonderful outcome to IBPAP’s staunch advocacy for WFH / hybrid work, and we are extremely thankful to our partners in the government for listening to the sector and its employees in adapting to flexible work arrangements in the future of work,” Madrid said.

He stressed that WFH/hybrid work is a game-changer for the Philippines and the sustainability of the IT-BPM industry, saying it would be a contributing factor to the ability of the industry to create 1.1 million new direct jobs for Filipinos, generate billions more in revenue, and significantly increase its countryside footprint by 2028.

“We are also grateful to have had the constant assistance and guidance of PEZA and BOI throughout everything that has happened. We will continue to work with them and our other stakeholders to iron out the details and process of this paper transfer,” Madrid said.

Last week, the FIRB allowed IT-BPM firms to adopt a 100-percent WFH arrangement by shifting their registration to the BOI from PEZA.

In its board meeting on Sept.14, the FIRB resolved to allow firms in economic zones to adopt up to 100-percent WFH and still enjoy tax incentives if they shift their registration from PEZA to BOI.

Trade Secretary Alfredo Pascual, who also chairs both the PEZA and the BOI, said that up to 100-percent WFH scheme would also be available to IT-BPM firms that would register for tax incentives with the BOI in the future.

The agreed arrangement was one of the options it presented to the FIRB, which is chaired by Finance Secretary Benjamin Diokno.

“From the beginning, our priority has been to secure a solution for the sector’s WFH setup, which has become the new normal post-pandemic,” Pascual said as he acknowledged the contributions of the IT-BPM sector in generating jobs and foreign exchange revenues for the country.

IBPAP

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