Japanese firms seek WFH setup in ecozones

SOME members of the Japanese Chamber of Commerce and Industry of the Philippines Inc. (JCCIPI) have raised issues on the work-from-home (WFH) arrangements and the proclamation of new economic zones in the Philippines as the business group vows to strengthen its partnership with the Philippine Economic Zone Authority (Peza) in attracting foreign direct investments (FDI).

According to Peza Director General Tereso O. Panga, some members of JCCIPI want Pezaregistered business enterprises (RBEs) to also enjoy flexible work arrangements while retaining their incentives.

“JCCIPI members are asking whether Peza has resolved the issue on WFH…Their clamor is for Peza [registered business enterprises] RBEs to be able to avail of flexible work with incentives following the same treatment for [Board of Investments] BOI RBEs,” Panga said in a Viber message sent to reporters on Tuesday.

The Peza chief also reported that in Peza, they are pushing for a hybrid workplace with a maximum 30-percent allowance for work-from-home.

“Most of our locators would like to keep their Peza registration and sites, while availing of flexiwork for their workers,”

Panga stressed.

In September 2022, the Fiscal Incentives Review Board (FIRB) agreed to allow the transfer of registered IT and Business Process Management (IT-BPM) companies to the Board of Investments (BOI) in an effort to resolve the sector’s “long-standing” issue on tax incentive claims while performing business activities outside their zone limits.

Diokno earlier said that the decision of the Board establishes a more permanent solution to the issue, allowing the RBEs to continue availing fiscal incentives without violating Section 309 of the National Internal Revenue Code of 1997, as amended by the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The provision specifically states that to be entitled to incen - tives, the conduct of registered projects or activities must be within the geographical boundaries of the ecozone or freeport administered by the concerned investment promotion agency (IPA). The BOI is the only IPA not affected by boundary constraints or zone limits.

New ecozones

MEANWHILE , Panga said another issue that the JCCIPI members raised was the proclamation of new ecozones.

“On the proclamation issue, JCCIPI members are asking if [Office of the President] OP can speed up the process for ecozone