The Philippine government realized the economic benefits of the country from BPO industries. That is the reason why the government is making adjustments to the country’s fiscal allotment and allocations to support the industry.
Outsourcing companies were given the chance to choose between the two existing trade laws of the country. The government gave the option to the outsourcing companies to register under the Board of Investor (BOI) or the Philippine Economic Zone Authority, both of which are government agencies implementing trade and business laws.
PEZA requires businesses to be constructed or located within a specific designated PEZA IT Park or building while BOI allows businesses to have it own location of its choice. In addition, the government gave tax exemption for new firms for about six years with a privilege to extend it. They would be allowed to extend under the following conditions:
· Their total imported and domestic capital equipment to the number of workers for the project does not exceed within the ratio of US$10,000 per worker.
· The net foreign exchange savings or earnings amount to at least US$500,000 annually during the first three years of operation
· A company should only allow employment of foreign nationals in supervisory, technical or advisory positions for length of five years from date of registration
· Foreign-owned/registered enterprises shall not be subjected to limitations for the positions: President, General Manager and Treasurer or their equivalent.
Manifestly the Philippine Government shores up the Business Process Outsource industry for they can see that this industry will be a remarkable contribution to sustain economic growth for the country. Giving such incentives for the industry will make Philippines a viable venue in doing outsourcing business.
Great….
This is good for Filipino…and of course just to improve our country.