The rise of hybrid work transformed the Philippine IT-BPM sector, but it also created compliance headaches for PEZA-registered companies that were historically required to operate 100% on-site.
The Evolution: From Tight Caps to CREATE MORE Agility
Under early post-pandemic rules, PEZA enterprises were strictly capped on how much of their workforce could telecommute without forfeiting fiscal incentives. Companies seeking 100% Work-From-Home (WFH) setups had to transfer their registration to the Board of Investments (BOI).
However, under the CREATE MORE Act (RA 12066), telecommuting policies have been harmonized across Investment Promotion Agencies (IPAs):
Flexible Work Frameworks: PEZA Registered Business Enterprises (RBEs) can now adopt hybrid and WFH arrangements within established FIRB (Fiscal Incentives Review Board) operational parameters.
Broader Scope: WFH flexibilities are no longer restricted strictly to IT-BPO firms—qualifying ecozone enterprises across other sectors can also leverage telecommuting frameworks.
Operational Checklist for Remote Teams in Cebu & Davao
To maintain your tax-exempt status while running hybrid teams in the Visayas and Mindanao, ensure your HR and legal teams:
Register asset movement (laptops, monitors, server equipment) taken off-site with PEZA customs officers.
Maintain clean attendance logs distinguishing on-site vs. remote shifts for annual BIR/PEZA compliance reviews.
File formal telecommuting notifications with PEZA prior to rolling out new remote policies.
Key Takeaway: You no longer need to sacrifice tax incentives to offer hybrid work in Cebu or Davao, provided your telecommuting framework strictly follows current PEZA and CREATE MORE reporting guidelines.
Navigating the business landscape in the Philippines can be both rewarding and intricate. Whether you’re embarking on a new venture or scaling up, ensuring that your corporate endeavors are in line with local regulations is paramount.
At CBOS Business Solutions Inc., we pride ourselves on simplifying these processes for our clients. As a seasoned professional services company, we offer comprehensive assistance with SEC Registration, Visa processing, and a myriad of other essential business requirements. Our team of experts is dedicated to ensuring that your business is compliant, well-established, and ready to thrive in the Philippine market.
Why venture into the complexities of business registration and compliance alone? Allow our team to guide you every step of the way. After all, your success is our commitment.
Get in touch today and let us be your partner in achieving your business goals in the Philippines.
Email Address: gerald.bernardo@cbos.com.ph
Mobile No.: +639270032851
You can also click this link to schedule a meeting.
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