Senator Sonny Angara on Thursday assured BPO (enterprise course of outsourcing) corporations that the tax incentives they take pleasure in will stay regardless of the proposed complete tax reform program of the federal government.
Angara made the peace of mind after the Department of Finance (DoF), throughout Wednesday’s public listening to on the proposed tax reform, has clarified that international providers of BPO corporations in particular financial zones will “remain exempted” from VAT (worth added tax), whereas these exterior particular financial zones, together with these registered underneath the Board of Investments, will retain their zero-rated (zero% VAT) standing.
“Makakahinga na po nang maluwag ang ating BPO sector matapos liwanagin na hindi mawawala ang kanilang VAT exemption,” stated Angara, chairman of the Senate Committee on Ways and Means.
“With the industry’s incentives intact, we can continue to attract more BPO investments that would spur economic growth and job creation in the country,” he stated.
Certain teams from the BPO trade had earlier voiced out their considerations that the removing of the VAT exemption would make the nation a much less engaging vacation spot amongst world BPO companies.
DoF Undersecretary Antonette Tionko stated that there is no such thing as a change of their tax coverage, and a few trade stakeholders have seemingly misinterpreted the provisions of the invoice.