PEZA endorses registration of P98 billion worth of projects

MANILA, Philippines — Over 700 information technology- business process management (IT-BPM) projects have been endorsed for registration by the Philippine Economic Zone Authority (PEZA) to the Board of Investments (BOI), in line with the policy of allowing IT-BPM firms to adopt a 100 percent work from home (WFH) set up.

Latest figures from the BOI showed that 786 projects worth P98 billion have been endorsed for transfer of registration by the PEZA to the BOI.

In September, the Fiscal Incentives Review Board (FIRB) issued Resolution 026-22 that allows registered business enterprises (RBEs) under the IT-BPM sector to adopt up to 100 percent WFH arrangement by transferring their registration to the BOI from PEZA.

Among the RBEs that can exercise the option to register with the BOI are those that have remaining tax incentives under Section 311 of  the National Internal Revenue Code of 1997 and RBEs with approved incentives on or before Sept. 14, under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) with the concerned investment promotion agency (IPA).

“They shall have until Dec 31, 2022 to exercise the option to register with the BOI. Those who did not exercise the option shall no longer be allowed to register and shall be covered by Sec. 309 of CREATE,” the BOI said.

Recently, the PEZA vowed to endorse all IT-BPM applications with complete requirements for transfer to the BOI until the end of the year.

In an interview with reporters, PEZA deputy director general for operations Vivian Santos said the agency has set an internal deadline of Dec. 16 to receive applications from IT-BPM registered business enterprises (RBEs) for the transfer of their registration to the BOI.

“We are committed that all applications be received on that day (Dec. 16). We will ensure that with complete requirements, we can endorse them to the BOI on or before December 31, “ she said.

In October, PEZA officer-in-charge and deputy director general for Policy and Planning Tereso Panga assured the IT-BPM sector of the agency’s full support and assistance in the transfer of registration to allow the implementation of 100 percent WFH arrangements.

“With government’s role as enablers of business and facilitators of value creation, PEZA will continue to enhance its ease and cost of doing business. We in PEZA always strive to provide the best business ecosystem in the ecozones so we can continue to attract more investments and sustain the growth of this winner sector,” Panga said earlier.

The statement comes as the Department of Trade and Industry (DTI), as supported by the FIRB, released memorandum circular (MC) 22-19, which contains the guidelines on the transfer of registration of IT-BPO companies to the BOI to allow 100 percent WFH.

– Catherine Talavera

To supplement DTI MC 22-19, which details the procedures on the registration of PEZA-registered IT-BPO companies with the BOI, the PEZA has issued memorandum circular 2022- 067 to guide its locator companies on the said transfer.

“The guidelines provide, among others, that the eligible IT locators will have until Dec. 31 to avail of the paper transfer of registration,” the PEZA said.

Under this arrangement, the BOI will issue a certificate of registration to the transferee RBEs for their conduct of 100 percent WFH while the PEZA will continue to administer to them the fiscal and non-fiscal incentives for the sunset period.

PEZA said it would retain the monitoring and reporting of the subject locators’ performance and for other compliance requirements.

The PEZA, however, indicated additional reminders for its IT-BPO companies availing of the transfer such as maintaining an office inside PEZA-registered IT centers/buildings.

“This is necessary in order for PEZA to retain its authority/jurisdiction over the transferee RBEs, which are required under the rules to operate inside the economic zone,” Panga said.

The PEZA said failure to comply with this mandatory requirement would result in the cancellation of its registration with PEZA as an IT enterprise and subsequently, its registration with BOI.