Concentrix Corporation Forgoes Tax Incentives For Allowing Remote Work

Remote work tax
Photo by Christina @ on Unsplash

The Philippines’ government has applauded Concentrix Corporation’s choice to forego tax benefits in favor of allowing its employees to work from home for the foreseeable future. Subsidizing outsourcers’ profits, the country believes, does little to help the local economy.

The Philippines implemented extended and severe COVID-19 lockdowns, prompting the country’s large BPO sector to swiftly adjust to working from home. The government of the country backed this decision by continuing to provide pre-COVID incentives to outsourcers with offices in select special economic zones.

Subsidies were later abolished, and the necessity to operate out of special economic zones was reinstated.

According to a statement released by the Philippines Department of Finance, Concentrix said last week that it will continue to enable its employees to work from home despite the fact that doing so would result in the company losing its subsidy eligibility.

“This goes to show that tax perks are not that important to investors doing business in the Philippines. By giving up their incentives, the opportunity cost to the government of these incentives will be minimized, which will make us more efficient in utilizing the government’s resources critical in our ongoing economic recovery efforts.”Juvy Danofrata, Assistant Secretary and Head, FIRB

Concentrix’s employees aren’t merely allowed to work from home. In some Philippines areas, the firm has developed “hubs.” The hubs provide workstations that local media reports are utilised as temporary workspaces when employees’ residences lose power or internet connectivity. The hubs also provide local IT support and a space for ad hoc cooperation like training and team meetings.

Concentrix isn’t the only company that uses a hub concept. Call centres don’t pay well, and worker turnover is common. Some companies have utilized hubs to lower their lease expenses while simultaneously saving money for their employees by decreasing commutes and picking locations where food, coffee, and parking are less expensive than in business parks or downtown areas.

The expense of constructing a hub can soon pay for itself if such a move cuts attrition by even a few percent.

Subscribe to Think Remote for the latest news, tips and stories from the remote work world.


Join us (We Have Cookies)

You're interested in news & tips about remote work? What luck! That's what we do! Better join our newsletter so we can hang out.