AmCham exec: Hybrid work should be allowed

THE American Chamber of Commerce of the Philippines (AmCham) is standing firm on its position that businesses should be allowed to offer flexible work arrangements for their employees.

AmCham Executive Director Ebb Hinchliffe told The Manila Times that registered business enterprises (RBEs) must still be given the choice to offer flexible work arrangements to employees suitable to the nature of their work.

“Alternative work arrangements are here to stay, and AmCham believes that companies should be allowed the flexibility to determine work arrangements that best suit their (company) and their employees’ needs,” Hinchliffe said.

To recall, the Philippine Economic Zone Authority (PEZA) allowed a 30-percent work-fromhome (WFH) setup starting in April 2022 to RBEs in economic zones as a response to the restrictions caused by the pandemic.

In September 2022, the Fiscal Incentives Review Board (FIRB) said that RBEs should transfer their registration to the Board of Investments if they still wish to continue WFH arrangements and avail themselves of their tax incentives.

With the debates on WFH and flexible work arrangements still ongoing, the Department of Justice (DoJ) released a legal opinion dated Jan. 3, 2024, stating that “in sum, Section 309 of the Corporate Recovery and Tax Incentives for Enterprises (Create) Act still prevails.”

“Business enterprises located in the economic or freeport zones must continue to conduct their activities within the zone boundaries if they wish to continue availing of their tax incentives under the Create Act,” Justice Secretary Jesus Crispin “Boying” Remulla said.

“Likewise, these enterprises are not prohibited from adopting a WFH arrangement but will no longer be eligible to continue enjoying the tax incentives,” he added.

With this, Hinchliffe is optimistic that such technicalities will be addressed in the Create More bill, which will simplify the tax incentives system under the present Create Act.

“We look forward to this flexibility being extended to RBEs under the Philippines Economic Zone Authority and other IPAs (investment promotion agencies) through the proposed amendments to Create [Act that is] currently pending in Congress,” he added.