Salceda eyes deadline extension for transfer of BPO registration from PEZA to BOI

The Department of Finance should extend the deadline for business process outsourcing (BPO) companies seeking to transfer their registration from the Philippine Economic Zone Authority (PEZA) to the Board of Investments (BOI) to the end of January 2023—a move that aims to protect and generate work-from-home (WFH) jobs, House ways and means panel chairman Joey Salceda of Albay said Wednesday.

Salceda was referring to the decision of the DOF's Fiscal Incentives Review Board (FIRB) allowing BPO companies under PEZA until the end of 2022 to transfer their registration to the BOI.

The transfer to BOI allows more of the companies’ employees to work from home, unlike under PEZA, which requires a certain number of employees to work on-site.

“According to the PEZA, only about 41% of them made it to submitting their requirements on time. Some 640 firms have not yet submitted their requirements. That means, they have to stop work-from-home and return fully onsite, or they will lose their tax incentives. PEZA also needs more time, because they have so far been able to process around 70% and endorse them to the BOI,” Salceda said in a statement.

“Protecting work-from-home jobs is important. It’s good for reducing traffic. It’s good for solo parents and those who need to care for other at home. It also equalizes opportunities between those living in the cities and those in rural or suburban areas like Albay,” Salceda added.

Salceda said that the work-from-home option is also a significant draw in for companies who may want to recruit from a more diverse talent pool.

“They can recruit from anywhere in the country. And recruitment in the BPO sector is tough. Retention costs are significant,” he pointed out.

“God knows we need that relief, given increased power costs and the many holidays that employers need to pay for,” he added.

Salceda then said that companies only had around three months since the September issuance of the FIRB resolution allowing the shift from PEZA to BOI.

“Many compliance and audit personnel and companies might be on vacation,” he said.

In closing, Salceda asked PEZA to expedite the remaining applications still bound for submission from the PEZA to the BOI.

“I am requesting the PEZA to complete submitting full applications to the BOI by the end of this month, if the deadline is not extended. It is vital that the companies that have completed their applications for transfer start 2023 on a solid footing of tax certainty,” he added.

Sought for comment, Finance Secretary Benjamin Diokno says Salceda's suggestion is on the table.

"Of course, it [deadline extension] is being considered," he said in a text message to GMA News Online. — BM, GMA Integrated News