BPOs to be allowed full work-from-home schemes under House tax bill

ABS-CBN News

MANILA - Business process outsourcing (BPO) firms will be allowed to fully implement remote work schemes while still retaining tax incentives under a House bill eyed to be passed next week. House Ways and Means Chair Joey Sarte Salceda said the House will send the Senate its approved version of the amendments to the CREATE (Corporate Recovery and Tax Incentives for Enterprises) Law, which lowers taxes and rationalizes fiscal incentives for corporations. Salceda said the bill, also known as the CREATE MORE Act, is targeted to be passed by the end of November, to “make the tax incentives system more responsive to the global market and more globally competitive.” The BPO industry has been lobbying to be allowed to keep remote schemes that they implemented during the COVID-19 pandemic. <figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=2710596" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>They cited continued productivity even when their workers were not reporting to the office physically. Many BPOs also worried that younger workers, who prefer remote work, may opt for other careers. <ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/28/22/as-govt-nixes-wfh-bpos-say-hybrid-work-is-the-future">A fight for the fate of work: As gov&#x27;t nixes WFH, BPOs say hybrid is the future</a></li>	<li><a href="https://news.abs-cbn.com/business/08/03/22/7-out-of-10-bpos-eyeing-hybrid-work-model-ibpap">7 out of 10 BPOs eyeing hybrid work despite govt return-to-office order: IBPAP</a></li></ul>The government however stood pat on its return-to-office order saying the law requires office-based work for BPOs for these firms to retain their tax perks.Salceda however said under their proposed amendments, the IT-BPO sector will also be allowed to fully undertake work-from-home schemes. “This will allow one of the country’s most durable sectors to remain globally competitive. The world has moved towards hybrid, and it does not make sense to limit ourselves in this area,” Salceda said.Aside from allowing remote work for BPOs, the bill also seeks to address “VAT rate and refund issues, especially for exporters.”A further reduction of corporate income taxes is also being eyed. Salceda also said they want to ‘wind down’ the power of the Fiscal Incentives Review Board to grant and approve fiscal incentives.

The BPO industry has been lobbying to be allowed to keep remote schemes that they implemented during the COVID-19 pandemic. 

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BPOs to be allowed full work-from-home schemes under House tax bill

BPOs to be allowed full work-from-home schemes under House tax bill

ABS-CBN News

Published Nov 07, 2023 04:10 PM PHT

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BPO

IT-BPM

call centers

business process outsourcing

remote work

work-from-home

fiscal incentives

tax perks

Joey Salceda

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