The work force is vital to any company’s success. This is one reason why most companies, especially those in the service industry, make significant investments in the training and development of their people.
In the case of a business process outsourcing (BPO) company, well-trained employees allow it to deliver excellent service to its clients worldwide. However, for BPO companies in the Philippines that are registered with the Philippine Economic Zone Authority (PEZA) and avail the 5% gross income tax (GIT) incentive, the deductibility of the training expenses as part of direct cost from the 5% GIT has not been clearly addressed by the Bureau of Internal Revenue (BIR).
Apr 262015