ERRATUM: Special InTAX: December 2021 Issue 1 | Volume 1

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

InTAX is an official publication of R.G. Manabat & Co.'s Tax Group

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special intax



Fiscal Incentives Review Board


The Fiscal Incentives Review Board (FIRB) issued FIRB Resolution No. 23-21, 15 October 2021, to reiterate the requirements of the previous FIRB Resolution No. 19-21 and denies the appeal of Philippine Economic Zone Authority (PEZA) to be exempted from the required work from home (WFH) arrangement not exceeding 90% of the total workforce as provided under the said resolution.

FIRB Resolution No. 23-21 enunciates the following:

  • FIRB Resolution No. 19-21 allows Registered Business Enterprises (RBEs) of Information Technology – Business Process Management (IT-BPM) sector to continue implementing the WFH arrangements without adversely affecting their fiscal incentives until 31 March 2022. Provided, that the number of employees under such arrangement shall not exceed 90% of the total workforce of the RBE; provided further, that beginning 01 January 2022, the ceiling shall be reduced to 75% for the remainder of the period of the temporary measure and that if the State of Calamity due to COVID-19 will be extended to any date beyond 01 January 2022, such ceiling shall be maintained at 90% until 31 March 2022.
  • In its letter dated 23 September 2021, PEZA requested to allow 100% WFH and that only 90% of revenue derived from the project or activity be entitled to incentives instead of the 90% total workforce of the RBE, which request FIRB denied.
  • The emerging economic strategy of the government is to open the economy while the Inter-Agency Force for the Management of Emerging Infectious Diseases Omnibus Guidelines and Department of Trade and Industry Advisory 21-09 allow Business Process Outsourcing (BPO) establishments and export-oriented business to operate onsite gradually and safely at 100% capacity in all levels of community quarantine.
  • Non-compliance with the conditions prescribed under FIRB Resolution No. 19-21 shall be meted with the suspension of the income tax incentive applied on the revenue during the corresponding month/s of non-compliance.


Attached are the full texts of the issuance.

FIRB's Response to PEZA

FIRB Resolution No. 23-21

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