RMC No. 45-2023: Publishes the full text of Fiscal Incentives Review Board Advisory No. 004-2023 clarifying the issues covering the transfer of registration with the Board of Investments (BOI) of Registered Business Enterprises (RBEs) in the Information Technology — Business Process Management (IT-BPM) Sector

Key points

1. BOI registration. New or expansion projects registered from September 15, 2022 onwards must register with the BOI to use 100% WFH. IT-BPM RBEs that used WFH in 2023 but did not register with the BOI by January 31, 2023 face a penalty on Regular Corporate Income Tax, computed on 100% of the RCIT for the months of non-compliance. This is without prejudice to suspension or withdrawal of incentives or cancellation of registration.
2. Dual registration. BOI registration is added on top of the existing IPA registration. BOI registration is the basis for fiscal incentives, and the original IPA registration is the basis for non-fiscal incentives. The IPA field in the tax return uses the syntax Concerned IPA-BOI, for example PEZA-BOI. CAI, CETI and VAT zero-rating certificates are still processed with the original IPA.
3. Tax Exemption Indorsement (TEI). The TEI, issued by the DOF Revenue Office, is proof of VAT and/or customs duty exemption on imported goods. A blanket TEI is required per project for existing imported goods as of January 31, 2023, and a TEI per shipment per project for assets imported from February 1, 2023. It is not required for imported laptops already assessed and taxed by the BOC, or for locally purchased goods.
4. Moving assets. During the bond-free period, asset movement needs a provisional goods declaration and a notarized undertaking that the TEI will be secured. Once the TEI is secured, no bond is imposed. Locally purchased VAT zero-rated goods move freely with the VAT zero-rating certificate and supporting documents. Assets with zero book value are valued at 10% of original book value.
5. Other clarifications. There is no limit on the WFH period once a project is registered with the BOI. The LGU share does not change if the registered address stays the same, and WFH employees are not assessed by the LGU under DOF Local Finance Circular No. 001-2022. The BOI-COR cannot be amended after January 31, 2023 to add new projects or expansions.

Who is affected

• IT-BPM Registered Business Enterprises
• IT-BPM RBEs registered with PEZA or other IPAs

Deadlines and effectivity

• BOI registration by January 31, 2023
• New projects from September 15, 2022 register with BOI for 100% WFH
• TEI required for assets imported as of February 1, 2023
• TEI application recommended at least ten (10) days before arrival of goods