American knowledge process outsourcing (KPO) firm Oracle Netsuite will continue expanding its operations in the Philippines despite uncertainty in the country’s outsourcing industry pending the passage of a tax reform bill, according to local reports.
In an interview with the Manila Bulletin, Oracle NetSuite Executive Vice President Evan Goldberg said the Philippines is “the life of the organization over the years” and its commitment in the country will not change at all.
Goldberg, founder of NetSuite, which as acquired by Oracle in 2016, said nothing will stop the company from continuing and growing in the Philippines, not even the pending passage of the second package of the comprehensive tax reform program.
The tax reform program, dubbed the Trabaho Bill, seeks to reduce corporate income tax overtime from the current 30 percent, but will put a cap on income tax holiday and the perpetual 5 percent tax on gross income earned.
Once passed, it will also abolish the bias on nationality rule and remove the export and domestic requirement of investors.
NetSuite operates a KPO hub and as a technical support for its global operation in the Philippines, where it has approximately 1,600 employees.
Oracle NetSuite joins a number of multinational firms operating in the Philippines that have expressed interest to continue expanding in the country.
Recently, consumer and industrial goods manufacturer 3M said it will push through with its plan to further expand its business in the Philippines despite uncertainties over fiscal incentives in the proposed tax reforms, according to an ABS-CBN report.
3M recently opened a BPO center in the country to cater to the company’s internal concerns. Ariel Lacsamana, the company’s president and managing director in the Philippines, said 3M has the intention to grow its hiring in the country “incentive or not”.
Foreign firms, mostly BPO companies, operating in the country’s economic zones have earlier expressed concerns that the proposed tax reform will take away fiscal incentives given to locators. – BPONewsDaily.com