The recent implementation of the CREATE MORE IRR marks an important moment for the BPO sector in the Philippines. This legislation introduces significant benefits, particularly in taxation and work-from-home (WFH) arrangements, designed to enhance operational flexibility and competitiveness.
WFH Opportunities for BPO Employees
Under the signed CREATE MORE IRR, BPO companies can now allow up to 50% of their employees to work from home (WFH) without losing tax benefits. Secretary Frederick Go, head of the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA), highlighted the significance of this development, stating,
“I think the BPO sector should be very happy with 50 percent work from home. I believe that now, it’s actually less than that already for most BPOs.”
– Secretary Frederick Go, head of the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA)
Tax Incentives for BPO Companies
The CREATE MORE IRR also offers better tax incentives to BPO companies:
- Income Tax Holiday (ITH). New BPO investments can enjoy 0% corporate income tax for 4-7 years.
- 5% Special Corporate Income Tax (SCIT). Instead of the usual 25% tax, qualifying BPO companies pay only 5% tax on gross income.
- VAT Zero-Rating for Local Services. This reduces operational expenses for businesses outsourcing within the country.
These incentives make it easier for BPO companies to grow and provide more job opportunities.
Moving Forward:
The CREATE MORE IRR presents the BPO Industry with a strategic advancement, aligning it with regulatory frameworks, contemporary work practices, and economic realities. BPO companies are encouraged to assess their current operations and consider integrating these new provisions to maximize benefits.
For a comprehensive understanding of the CREATE MORE Act and its implications, you may refer to the detailed analysis provided by Babylon2k.
DISCLAIMER: This article is developed by subject matter experts at Babylon2k’s partner companies. This is for general information only and does not constitute expert advice. It is based on current regulations and may not account for all related topics. Any tax or compliance guidance provided cannot be used to avoid penalties or promote specific actions. Laws and interpretations may change over time, which could affect the accuracy of this report. We are not obligated to update this advisory if new regulations arise.
For further questions about the CREATE MORE IRR, you may ask Babylon2k’s trusted AI assistant, B.E.T.H. Learn More >
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RESOURCES
- CREATE MORE Act Philippines: Tax Incentives & Investment Benefits for 2025 | Read More >
- CREATE MORE IRR signed, BPOs will be ‘very happy with 50% work from home’ – Go | Read More >
