#bpo tax incentives

From PEZA to BOI To recall, the Fiscal Incentives Review Board (FIRB) has long supported the full reopening of the economy, as exhibited in their Resolution 019-21, and this mandate to "return to office" (RTO) included the BPO industry. Besides the expected exodus of BPO firms to retain their fiscal incentives, another noteworthy development in recent weeks is the prospect of AI replacing human jobs, including those in the call centers. In a statement issued last June 10, Department of Finance (DOF) Assistant Secretary Juvy Danofrata indicated that the Fiscal Incentives Review Board (FIRB) welcomes the decision of business process outsourcing (BPO) firm Concentrix to give up fiscal incentives in exchange for maintaining its hybrid work scheme for their employees. This meant their tax incentives are likely being used to augment shareholder returns. In their analysis, fiscal incentives would not be detrimental to BPO viability, but would instead affect their profitability. In a subsequent statement issued June 15, meanwhile, the FIRB cited PEZA as "clueless" on actual investments made by locators since the implementation of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act, citing 12 of 196 PEZA-registered business enterprises (RBEs) having no information on investment capital. "PEZA is confident that benefits of incentives to investments outweigh the foregone taxes; hence, we find the statement by FIRB practically erroneous, misleading and intends to embarrass PEZA as an Investment Promotion Agency (IPA)," Plaza said. Read more in our articles including "Full work-from-home setup for BPOs: Will it cause a provincial shift?" and "Gov't says tax incentives 'not that important' for BPOs as RTO mandate remains".