The CREATE MORE Act - an amendment of CREATE Law - to allow BPO sectors to Work-From-Home: 100% without affecting on tax perks.

Nov. 2023 -- let's brace ourselves as there's an on-going policy amendment from the House of Representatives regarding the amendment of the CREATE Law.

? CREATE MORE Bill is once again up for discussion in the house as the tax incentives resurfaced. The tax incentives that they're pertaining to is the companies that are already under the BoI or Board of Investments. This transition from PEZA to BoI stems from the resolution of Secretary Diokno regarding the FIRB inclusion of companies or RBEs that are under PEZA. See story .

This resolution is eyed to be passed on the end of November.

House Ways and Means Chair Joey Sarte Salceda said the House will send the Senate its approved version of the amendments to the CREATE (Corporate Recovery and Tax Incentives for Enterprises) Law, which lowers taxes and rationalizes fiscal incentives for corporations.

The new bill is known as CREATE MORE - to “make the tax incentives system more responsive to the global market and more globally competitive.” Rep. Joey Salceda said.

? The Sector

The Return-to-Office or Hybrid set-up was a long pain point for the industry in general. From Inflation to Attrition as most of the colleagues that I've been with since the RTO has been implemented left due to the said mandate and said they've found another company who offers full remote.

Despite the government stood up for its position to mandate the companies to make their staffs return-to-office, companies may have been inflicted by high attrition (no other reason I've thought that they are requesting a more flexible working arrangements). However, the tax perks were used for this mandate to happen.

The WFH set-up during the pandemic increased more on the industry rather that the hurt. IT & Business Process Association of the Philippines, Inc. (IBPAP) data shows that the sector generate $26.7 Billion in revenues and create 1.32 Million jobs in 2020.

? The Amendments

Rep. Joey Salceda (Albay, 2nd District) mentioned that the amendments, the IT-BPO sector will be allowed to fully undertake work-from-home schemes.

“This will allow one of the country’s most durable sectors to remain globally competitive. The world has moved towards hybrid, and it does not make sense to limit ourselves in this area,” Salceda said.

This implementation is applicable whether the company is under PEZA or BOI.

? Opinion

This long battle of whether WFH or RTO will soon be over. The mandate will lose its effect and perhaps, now, it's up to the company, your employer whether you'll be in the office or working-from-home. This is a big step especially in the Philippines to align as well with their global counterparts (offshore) to align this arrangement and implement it. The dreading commute and inflation is costing more.

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