As some Information Technology-Business Process Management (IT-BPM) entities registered with the Philippine Economic Zone Authority (PEZA) are shifting to the Board of Investments (BOI) to retain the work-from-home arrangement beyond December 31, 2022, the BOI issued Memorandum Circular No. 2022-005, reiterating the exemption from business tax of enterprises certified by the BOI as pioneer or non-pioneer enterprises, for a period of six years or four years, respectively, from the date of registration.
To avail of the incentive, the Registered Business Enterprise (RBE) must submit an application to the BOI Legal and Compliance Service along with the required fee, if applicable. The application shall be accompanied with the following:
a. Justifications based on Article 17 of Executive Order No. 226, as amended;
b. Applicable endorsement from the Department of Science and Technology, Department of Agriculture, Department of Energy, or other appropriate government agencies; and
c. Other information or documents as may be required by the BOI.
The application or request shall be examined by the relevant BOI Service of the Industry Development Services to determine if the project or activity is pioneer or non-pioneer, subject to the BOI’s Board of Directors for approval, upon satisfaction of the aforementioned requirements.
RBEs whose registered project or activity is upgraded to pioneer status must submit the original copy of their BOI Certificate of Registration, along with their Specific Terms and Conditions, to the BOI Legal and Compliance Service for annotation of their pioneer status and payment of the applicable amendment fee.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 30 September 2022
