432 PEZA firms apply for hybrid work (Sabong News)
Author
Bernie Cahiles-Magkilat
Date
APRIL 25 2022
A total of 432 registered business enterprises (RBEs) of the Philippine Economic Zone Authority (PEZA) have applied for Letter of Authority (LOA) for the implementation of hybrid work arrangement in their operations to continue availing of incentives.
PEZA Director General Charito B. Plaza said they still continue to accept applications for 70 percent onsite operations and 30 percent work-from-home (WFH) arrangement. “There is no deadline,” said Plaza referring to the submission of LOA request for 70-30 work model. At present, there are 1,733 PEZA RBEs.
PEZA said that almost all of its IT-BPO firms, particularly the big ones, have availed of the hybrid work arrangement.
Meantime, a source privy to the crafting of the Strategic Investment Priority Plan (SIPP) it is institutionalizing home (WFH) or hybrid work arrangement as eligible activity for government tax incentives.
During the pandemic, PEZA RBEs were allowed to operate 90 percent WFH and 10 percent onsite until March 30 this year. With the expiry of this privilege, PEZA RBEs have urged government to extend the 90-10 hybrid work up to September this year.
But the Fiscal Incentives Review Board denied PEZA’s request for extension with Finance Secretary Carlos G. Dominguez III saying that IT-BPM firms in economic zones and are registered with investment promotion agencies (IPAs) will lose their incentives if they will not return to their approved economic zones, and IT Parks and Centers.
PEZA, however, insisted they can allow 70-30 hybrid work arrangement under their rules. Plaza earlier argued that PEZA RBEs, which are foreign-owned and export-oriented, are allowed to sell 30 percent of their production to the domestic market and 70 percent for export. This rule also applies to 30 percent WFH and 70 percent onsite operations for their RBEs, she said.
Aside from this 70-30 ratio on foreign-domestic sales rule in the PEZA rules, the agency is also invoking the Telecommuting Act as another basis to allow its ITBPM RBEs to continue working outside the premises of approved ecozones or IT Parks/Buildings.
The Telecommuting law, Plaza said, provides for the work schemes utilizing computer technology. PEZA has been allowing the hybrid work arrangement even prior to the pandemic.
Plaza further said there should be “no diminution of incentives” for its RBEs that will operate under the 70-30 hybrid work arrangements.
