FIRB Extends Deadline for Transfer of Registered IT-BPM Enterprises to BOI until 31 January 2023

On 23 December 2022, the Fiscal Incentives Review Board (“FIRB”) under Resolution No. 033-22 extended the effectivity of FIRB Resolution No. 026-22, allowing existing Registered Business Enterprises (“RBEs”) in the Information Technology-Business Process Management (“IT-BPM”) sector to transfer their registration to the Board of Investments (“BOI”) until 31 January 2023. The transfer of registration from the Investment Promotion Agency administering an economic zone or freeport zone where their project is located to the BOI will allow these RBEs to adopt up to 100% work-from-home (“WFH”) arrangement without loss of incentives. 

The original deadline pursuant to FIRB Resolution No. 026-22 was last 31 December 2022. However, only about 40% of the affected RBEs were able to submit their requirements for transfer of registration, and some 640 RBEs have not yet submitted theirs. The FIRB, in recognition of the need of the RBEs to adopt the WFH and any proposed alternative work arrangement as their business model, and to give full effect to the intent behind the provisions of FIRB Resolution No. 026-22, extended its effectivity until 31 January 2023. In this regard, Department of Trade and Industry (“DTI”) Memorandum Circular (“MC”) No. 22-19, Philippine Economic Zone Authority MC Nos. 67 and 70, and other appurtenant issuances shall remain in force, as may be applicable. 

RBEs registered with the BOI may already adopt up to 100% WFH arrangement without loss of incentives upon completion of their registration and shall not be required to post bond pursuant to DTI MC 22-19. RBEs in the IT-BPM sector that will opt to register with the BOI from January 1 to 31, 2023, will not be required to post a bond for all equipment and other assets that will be 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 Revenue Office or 31 March 2023, whichever is earlier.