Special InTAX: January 2023 Issue 1 | Volume 5

Fiscal Incentives Review Board

The Fiscal Incentives Review Board (FIRB) issued FIRB Advisory No. 003-2023, dated 27 January 2023, informing all parties concerned on the proper basis of the penalty in case of non-compliance by Registered Business Enterprises (RBEs) in the Information Technology-Business Process Management (IT-BPM) sector with the 30% work-from-home (WFH) threshold pursuant to FIRB Resolution No. 017-22 (as extended by FIRB Resolution No. 26-22).

Specifically, the FIRB Advisory provides for the following:

• The penalty on non-compliance by the covered RBEs shall be based on 100% or the entirety of the regular corporate income tax (RCIT) for the month/s of non-compliance (not merely based on the excess of the 30% WFH threshold).
• The penalty on non-compliance by the covered RBEs shall be based on 100% or the entirety of the regular corporate income tax (RCIT) for the month/s of non-compliance (not merely based on the excess of the 30% WFH threshold).
• The covered RBEs may no longer adopt WFH arrangements beginning 01 January 2023 unless registered with the Board of Investments (BOI) not later than 31 January 2023 pursuant to FIRB Resolution No. 033-22, which extends the deadline for existing covered RBEs to transfer their registration to the BOI.

Please click on the link for the full text of the issuance: FIRB Advisory 003-2023