Tax Alert No. 38 [Revenue Memorandum Circular (RMC) No. 102-2022 dated 07 July 2022]

Publishing Fiscal Incentives Review Board (FIRB) Resolution No. 017-22 - Grant of Authority to Implement a 70:30 Work-from-Home (WFH) Arrangement for Registered Business Enterprises (RBEs) in the Information Technology - Business Process Management (IT-BPM) Sector 

RMC No. 102-2022 has been issued to publish FIRB Resolution No. 017-22 regarding the grant of authority to implement a 70:30 WFH arrangement for RBEs in the IT-BPM Sector which provide services in line with the Strategic Investment Priority Plan. 

Based on the FIRB Resolution, the number of employees under a WFH arrangement shall not exceed 30% of the total workforce of the RBE while the remaining 70% shall render work or service within the geographical boundaries of the ecozone or freeport zone being administered by the Investment Promotion Agency within which the project/activity is registered. The total workforce includes employees who are directly or indirectly engaged in the registered project or activity of the RBE. Third-party contractors rendering janitorial or security and other similar services are not included in the determination of the total workforce. 

This 70:30 WFH arrangement is a temporary measure granted to IT-BPM RBEs from April 1, 2022 until September 12, 2022 only under Rule 23 of the Corporate Recovery and Tax Incentives for Enterprises Act’s Implementing Rules and Regulations in view of Presidential Proclamation No. 1218, series of 2021. RBEs in the IT-BPM sector adopting a WFH arrangement exceeding the 30% threshold shall not be entitled to avail of fiscal and non-fiscal incentives for the said month/s of non-compliance.

You may access the full version of the RMC through the BIR website.