FIRB clears extension till Jan 31. of RBE paper transfer registration

THE Fiscal Incentives Review Board (FIRB) said it has allowed the extension until January 31, 2023 of the paper transfer registration of existing registered business enterprises (RBES) in the IT and Business Process Management (IT-BPM) sector to the Board of Investments (BOI).

FIRB Resolution No. 033-22, released last December 23, 2022, states that “there is an urgent need to extend the December 31,2022 deadline to give full effect to the intent behind the provisions of FIRB Resolution No. 026-22 to allow affected RBES in the IT-BPM sector to adopt, on a long-term basis, flexible work arrangements without adverse effects on their tax incentives.”

FIRB is the interagency government body given the authority to grant tax incentives to RBES.

Further, the FIRB said the affected RBES that have already registered with the BOI may already adopt up to 100 percent work from home (WFH) arrangement without loss of incentives upon completion of their registration with the said investment promotion agency. The government body also noted that these RBES shall not be required to post bond pursuant to the Department of Trade and Industry (DTI) Memorandum Circular (MC) 22-19.

“Provided that RBES in the ITBPM sector that will opt to register with the BOI pursuant to this Resolution from January 1 to 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,” the FIRB Resolution read.

The FIRB noted in the resolution that only about 40 percent of the affected RBES made it to submitting their transfer requirements on time while some 640 RBES have not yet submitted theirs.

Trade Undersecretary and BOI Managing Head Ceferino S. Rodolfo said at a virtual media briefing last December 16 that the BOI will work closely with the IT and Business Process Association of the Philippines. He also noted that “the number might

have already been final and that others may not be interested to transfer.”

The BOI managing head earlier said the investment promotion agency is coordinating with Philippine Economic Zone Authority (PEZA) and the FIRB to carry out the process of the paper-transfer registration.

Pursuant to PEZA MC 2022-070, PEZA initially set an earlier deadline of December 16,2022 to ensure that PEZA will have sufficient time to review applications before they endorse it to the BOI. (Full story here: https://businessmirror. com.ph/2022/12/15/peza-vowsto-meet-deadline-for-submissionof-rbe-applications/)