Industry News: BPO Companies’ Emergency Protocol, Aid For Call Center Fire Victims, and Effect Of TRAIN To Taxpayers
January 11, 2018
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BPO Industry News: Confusion Over TRAIN Tax Perk, Economy Growth Amid BPO Slowdown, And The Effect Of Trump’s Protectionist Policies In PH BPO Expansion

BPO group asks clarification over TRAIN Tax Perk

The Philippine Association of Multinational Companies Regional Headquarters Inc. (Pamuri), a subsector of the business process outsourcing (BPO) industry sought clarification over confusing provisions related to the Tax Reform for Acceleration and Inclusion (TRAIN) law.

The BPO group wants to clarify the 15-percent preferential tax rate (PTR) on gross income of BPO employees who are under the regional operating headquarters (ROHQs/RHQs) that multinational companies established.

Pamuri said that the said industries are confused regarding the effect of the signed TRAIN law, including the veto that followed several days later, which states that only ROHQs and RHQs that started business before 2018 would be granted the tax perk. New companies that would invest here starting this year cannot afford the incentive.

There are two citations in the tax law that allowed the PTR: the special tax rate and the one that only applies to ROHQs and RHQs that already exists before this year.

Pamuri stated that President Rodrigo Duterte vetoed only the latter provision. The question is whether or not the first provision still applies. — via Inquirer.net

 

Despite BPO slowdown, PH economy expands 6.7 percent

The Philippine economy experience the fastest gross domestic product (GDP) growth at 6.7 percent in 2017, in spite of the slowdown in the business process outsourcing (BPO) industry.

The threats of US President Donald Trump to bring back outsourced jobs was cited as the main reason that caused the 31.3-percent decrease in investment year-on-year in the three months to last June.

There is also a fear that automation and artificial intelligence could steal call center jobs in the Philippines.

Meanwhile, Socioeconomic Planning Secretary Ernesto M. Pernia said the GDP growth last year was third fastest in the region after China’s 6.9 percent and Vietnam’s 6.8 percent.

The 6.7-percent growth, though, was still slower than the 6.9-percent posted in 2016. More Filipinos also said they experienced hunger last December, which means that the recorded growth has the least effect on the poor.

National Statistician Lisa Grace S. Bersales noted that robust public spending was the main driver of the growth in the fourth quarters, along with manufacturing, trade, real estate, renting, and other business activities. — via Inquirer.net

 

BPO expansion in PH may slow down due to Trump’s protectionist policies

The protectionist stance of United States President Donald J. Trump may cause the business process outsourcing (BPO) industry to slow down in the Philippines this year.

International think tank BMI Research said in a recent report that emerging markets around the globe will be observing increased investments in service centers, which includes BPO industry by global multinationals.

BMI Research senior Asia analyst Raphael Mok, however, noted that BPO companies will be less aggressive in their efforts this year because of Trump’s protectionist policies.

Amid this emerging concern, Mok said the pull on new investments is expected to gradually subside over the coming quarters, barring any actual protectionist policies against the Philippines.

The Philippines is among the top 5 emerging markets with the largest market share in the BPO industry. It is also the country with the fastest growth rate in the years 2012 to 2016 at 63.6 percent. — via Business Mirror

 

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