BPO companies urged to register with BOI for telework agreement

The Department of Trade and Industry on Tuesday encouraged IT process management companies to register with the Board of Investments to exempt them from the geographic limitation that is intrinsic to operating in economic zones.

Commerce Secretary Ramon Lopez said the government was open to expanding the offsite arrangement or work-from-home ratio, if not for the Business Recovery Act and tax incentives for Companies, which restricts all operations of companies registered with the Philippine Economic Zone. Authority within economic zones.

“It is provided in the law that the activities must be carried out within the zones. So that’s our limit. So the next step, there should be a review of the PEZA law or the alternative for other businesses, especially those that are planning to expand, is to register with the BOI,” Lopez said.

He said companies registered with the BOI could still benefit from the same set of incentives, “and yet there will be no limitations as to their location from which they need or want to operate”.

Lopez said that with the BOI, there were no location restrictions and companies could adopt TV and hybrid work schedules as they wished.

He encouraged businesses to bring their concerns about flexible working arrangements to the next administration at the next Congress.

PEZA’s two legal advisors and the Bureau of Internal Revenue are working on acceptable working conditions that will retain the incentives given to PEZA-registered businesses. They’re looking at a 70% on-premises, 30% WFH setup.

“We really want to support the BPO industry. This is why we have extended the WFH from December 2021 to October 2022,” Lopez said.

PEZA continues to promote the hybrid workplace initiative to help IT and BPM companies optimize their operations in the Philippines.

The data showed that among the 1,733 locators inside the economic zones, 423 companies requested the institutionalization of the hybrid work program.

PEZA argued that the 30% WFH is permitted activity under the PEZA, CREATE, and telecommuting laws.


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