After months of deliberations in the Senate, Philippines will officially be the first call center hub which will grant complete tax exemptions to Business Process Outsourcing(BPO) employees.
Good news to all call center agents whose basic pay is below P45,000 per month as the Philippine government formally announced the implementation of Republic Act No. 421567 also known as BPO Tax Rebracketing Bill. Lawmakers were silently discussing the tax proposal to all call center companies in the country since March 2016.
The deliberations of this particular bill were never reported by any local news outlets last year because their focus was the 2016 Presidential election. Unknown to many, Congressman Alvaro from Negros Occidental was very confident that the complete tax exemption of call center agents will be passed by the committee since 99.77% of the BPO contact centers in the Philippines are also in favor of such proposal.
During the first deliberation in April 2016, the bill received a total of 94% approval from other lawmakers making it the first ever session to garner such high rating. In 1961, an initial vote of a certain bill received a favorable acceptance of 92.87%.
Call center agents, who are mostly in Metro Manila, will surely have a celebration tonight when they will receive the formal communication from their Human Resource Department regarding the tax exemptions.
However, before the party begins, please be informed that supervisors and managers are not covered by the provisions of Republic Act No. 421567. Meaning, whatever tax you are currently paying each month would still be effective.
Lastly, the target implementation of the tax exemptions for call center agents will be on April 1, 2018.