Summary
RMC No. 102-2022 publishes Fiscal Incentives Review Board (FIRB) Resolution No. 017-22, which authorizes a 70:30 Work-From-Home (WFH) arrangement for Registered Business Enterprises (RBEs) in the IT-BPM sector.
Key points
- The 30% limit. Employees under WFH may not exceed thirty percent (30%) of the RBE’s total workforce. The other seventy percent (70%) must work within the geographical boundaries of the ecozone or freeport zone administered by the Investment Promotion Agency where the project is registered.
- Meaning of total workforce. It means all employees directly or indirectly engaged in the registered project or activity. It excludes third-party contractors rendering janitorial, security and similar services.
- Consequence of exceeding the limit. An RBE with WFH above the thirty percent (30%) threshold cannot avail of fiscal and non-fiscal incentives for the month or months of non-compliance.
- Temporary measure. The arrangement is temporary and granted under Rule 23 of the CREATE Act Implementing Rules and Regulations, in view of Presidential Proclamation No. 1218, s.2021.
Who is affected
- Registered Business Enterprises in the Information Technology – Business Process Management (IT-BPM) sector
Deadlines and effectivity
- Valid from April 1, 2022 until September 12, 2022 only
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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