Tax Alert No. 2 [Fiscal Incentives Review Board (FIRB) Resolution No. 033-22 dated 23 December 2022]

Extending until 31 January 2023 the transfer of registration of existing IT-BPM RBEs to BOI

FIRB Resolution No. 026-22 allowed existing Registered Business Enterprises (RBEs) in the Information Technology - Business Process Management (IT-BPM) sector to transfer their registration to the Board of Investments (BOI) and adopt a 100% work-from-home (WFH) arrangement without loss of incentives until 31 December 2022.

Accordingly, the Philippine Economic Zone Authority (PEZA) issued Memorandum Circular No. 2022-070, giving affected RBEs until 16 December 2022 to submit their application forms. However, only forty percent (40%) of the affected RBEs were able to submit the transfer requirements on time, and some 640 RBEs have not yet submitted theirs. 

To allow more RBEs to adopt flexible working arrangements without adverse effect on their tax incentives, FIRB issued Resolution No. 033-22 extending the effectivity of FIRB Resolution no. 026-22 until 31 January 2023. 

The said Resolution further provides that RBEs that will opt to register with the BOI from January 1-31, 2023 will not be required to post a bond for all equipment and other assets that will be brought outside the economic or freeport zone until they secure the Tax Exemption Indorsement for all their equipment and other assets from the DOF Revenue Office or 31 March 2023, whichever is earlier. 

You may access the full version of this issuance through the FIRB website.