FIRB Allows Work From Home Arrangement For IT-BPM Sector Until September 2022

Presidential Proclamation No. 1218, series of 2021 extended the existing State of Calamity due to the COVID-19 virus throughout the Philippines for one (1) year from 13 September 2021 to 12 September 2022, unless earlier lifted or extended. Pursuant thereto, the Fiscal Incentives Review Board (“FIRB”) issued FIRB Resolution No. 017-22, which provides for the implementation of work-from-home (“WFH”) arrangements from 01 April 2022 until 12 September 2022 for Registered Business Enterprises (“RBEs”) of the Information Technology-Business Process Management (“IT-BPM”) sector as a temporary measure under Rule 23 of the CREATE Act’s Implementing Rules and Regulations. Such arrangement will not adversely affect the fiscal incentives of the RBEs of the IT-BPM sector under the CREATE Act during the aforementioned period.

The number of employees under a WFH arrangement shall not exceed 30% of the RBE’s total workforce. On the other hand, the remaining 70% shall render work or service within the geographical boundaries of the ecozone or freeport zone being administered by the Investment Promotion Agency (IPA) with which the project is registered. RBEs in the IT-BPM sector under a WFH arrangement exceeding the 30% threshold cannot avail of fiscal and non-fiscal incentives for the said month/s of non-compliance. 

The total workforce pertains to all the employees that are directly or indirectly engaged in the registered project or activity of the RBE. However, this does not include third-party contractors offering janitorial or security services and other similar services. Meanwhile, the RBEs of the IT-BPM sector shall refer to those providing services in line with the Strategic Investment Priority Plan.