Tax Notes: Firb extends work-from-home arrangements until Dec. 31, 2022

Last Sept. 15, 2022, the Fiscal Incentives Review Board (Firb) granted the extension of the 70-30 work-from-home arrangement, wherein 70 percent of the total workforce are required to report within the premises of the Philippine Economic Zone Authority (Peza)-registered Information Technology (IT)-Business Process Management (BPM) entities while 30 percent of the total workforce are allowed to work from home until Dec. 31, 2022.Originally, the Firb issued Resolution 017-22, which allowed registered business enterprises of the IT-BPM sector to continue implementing work-from-home arrangements without adversely affecting their fiscal incentives under the Corporate Recovery and Tax Incentives for Enterprises Act from April 1, 2022 until Sept. 12, 2022.The extension of the work-from-home arrangement was based on the extension of the country’s pandemic-prompted state of calamity from Sept. 12, 2022 to Dec. 31, 2022.Prior to the announcement of the extension, Peza issued Peza Memorandum Circular 2022-061 on Sept. 9, 2022, temporarily maintaining the status quo of the 70-30 work-from-home arrangement while waiting for the Firb’s decision on the Peza’s request to extend the remote work arrangement.With the extension of the work-from-home arrangement, Peza-registered IT-BPM entities which are processing their registration with the Board of Investments are allowed to enjoy their tax incentives while ensuring a smooth transition from remote to onsite work.Please be guided accordingly.Source:P&A Grant ThorntonCertified Public Accountants