Hexagon April 2022

By: Mikko Palon
Vice President for Events, FACCGLA

On Sunday, March 20th, Honorable Attorney Rob Bonta headlined the collection of venerated VIPs at New Horizons 2022: the memorable installation of the 2022-2023 Officers and Board Members of FACCGLA.

Upon arriving, Hon. Atty. Bonta was first greeted by FACCGLA President Lois P. Klavir.

He was then welcomed on the red carpet for a quick photo op and interview with red carpet host, FACCGLA’s Immediate Past President Annie Nepomuceno.

The beginning portion of the program was ignited by a riveting speech delivered by the esteemed guest. His message touched on the themes of putting the unity in our community, progress, and resilience from the effects and aftereffects of what our society has tackled the past couple of years. He also congratulated the newly-installed Executive Committee and Board of Directors, infusing optimism on what is sure to be a progressive and fruitful term moving forward. In between witty remarks here and there, the highly engaged audience cheered and applauded. Lastly, the gala organizing team was commended for crafting such a carefully-planned and well-attended event.

After Hon. Atty. Bonta spoke, the entire room was filled with energy that lasted throughout the rest of the event, and clusters of attendees then gathered around the Attorney General for a chance at pictures and selfies as he concluded his appearance.

A night that had so much to offer, over 250+ guests attended as they connected and networked with other high-powered attendees and sponsors.

VIEW & DOWNLOAD OFFICIAL EVENT PHOTOS: www.newhorizons2022.com/photos

VIEW & DOWNLOAD THE COMMEMORATIVE PROGRAM BOOK: www.newhorizons2022.com/book

COFACC conducted its 10th virtual Executive Board Meeting for FY 2021-2022 on Tuesday, March 8, 2022, with a whopping attendance of 40 chamber leaders, representing the 24 organizations that comprise COFACC.

The Philippine American Chamber of Commerce of Oregon (PACCO) was the host Chamber this month and did a splendid job of sharing specific highlights of PACCO’s accomplishments, goals and best practices, to the entire team! Special thanks to PACCO’s Executive Director & COFACC Sr. Director for Organizational Development, Ellen Bolus-Edmonds for moderating the entire meeting.

In attendance were dignitaries from the Philippine Chamber of Commerce & Industry (PCCI) Director for Regional Affairs, ECOP Board of Governor, PHILEXPORT Board of Trustee & Consul General of Liberia to the Philippines, Ms. Eunina Mangio and PCCI Quezon City President Alfred Carandang. During the meeting, the recent announcement of COFACC’s Sr. Director for International Relations, Mr. Lorenzo “Enchong” Formoso as PCCI Committee Chair on Trade Facilitation and Ways & Means for International Relations, was shared to the Board.

Other meeting highlights were the official launching of “The Hexagon,” the official e-newsletter of COFACC as well as the 2022 full calendar schedule of the JES Leadership Training Program Series which is headed by COFACC Dir. for Training & Development, Dr. Fatima Bustos-Choy.

#TogetherWeRise #PhilippineChamberofCommerceandIndustry #COFACC #filipinoamericamchambers #pcci #National #bestpractices #leadership

By Ellen R. Swing

Every business has the goal of sustainability and improved cash flows. One way to achieve this is to take advantage of the tax provisions and rules that are made available for businesses. Here are some tax smart moves that business owners can leverage to strategize their tax savings and help towards this goal.

1. 5-Year Net Operating Loss Carryback Provision:

NOL or Net Operating Loss Carryback is the amount that can be carried back and deducted from income earned in previous years, resulting in a refund of tax payments made in the past. Prior to the provision, a business was not allowed to carry back losses for tax years beginning in 2018 and after.

Under the CARES Act, the provision allowed a 5-year carryback of losses incurred in 2018, 2019, and 2020 and suspended the loss limitation rules for those years. Business owners can carry back the net operating losses from 2018–2020 five years up to the earliest year. Additionally, any 2018–2020 losses that are carried forward will not be subject to the 80% limitation of taxable income through 2020. This allows businesses that previously paid taxes to get these payments refunded. This refund could go a long way to improve the cash flow for a business.

For tax years beginning January 1, 2021, the provision allows a 100% deduction for NOL incurred beginning in 2017 and earlier, and an 80% deduction for NOLs for tax years beginning after December 31, 2017. The carryback claims will need to be made on an amended tax return.

2. Accelerated Depreciation Rules:

Small businesses can deduct the purchase of capital assets by depreciating them over several years. However, the 2017 Tax Cuts and Job Act made changes to increase the benefits for buying equipment, machinery, vehicles, and other business property through increased write-offs on the tax return. Called Accelerated Depreciation Rules, the deduction process accelerates or speeds up the business deduction of an asset purchase, thereby reducing the tax liability for the year. A business can buy approximately $1.1 million in capital equipment — machinery, technology, etc. — and then deduct all of it in the same year for as long as it is put into service. Bonus depreciation of 100% is available for assets placed in service during 2019, 2020, 2021 and 2022. It is reduced to 80% in 2023, 60% in 2024, 40% in 2025 and 20% in 2026. Purchases of new and used equipment are eligible. Bonus depreciation is completely phased out for 2027.

3. Employee Retention Tax Credit:

In the wake of COVID-19 pandemic and as part of the 2020 CARES Act, the Employee Retention Credit (ERC) was created to help small businesses by encouraging employee retention amidst revenue losses. It is a refundable tax credit given to businesses and allows for as much as $10,000 per employee for 2020 and $28,000 per employee for 2021. The ERC was extended through the end of 2021 to give businesses more time to claim it. Credit is taken against the employer payroll taxes owed, and if the credit is higher than the taxes due, the difference can be claimed in refund. If it was not claimed in 2020, there is still time to amend the payroll tax and income tax returns.

There are 3 ways for businesses to qualify for the 2021 ERC.

• If a business was partially or fully shut down due to a governmental ordinance limiting its activities and operations.
• If a business had a loss of 20% of revenues in any quarter of 2020 (50% in any quarter of 2020) compared to the same quarter in 2019.
• If you are a recovery startup business which is defined as a company that started after February 15th, 2020, with no more than $1M in gross receipts for the three years prior to claiming the credit.

4. Work Opportunity Tax Credit :

The Work Opportunity Tax Credit (WOTC) is a federal tax credit made available to businesses who hire workers in certain target demographics who have consistently experienced employment barriers. It incentivizes workplace diversity and facilitates equal opportunity. Employers can claim the income tax credit of as high as $9,600 per employee in the targeted group. A jobseeker should be either recently out of prison, off welfare, or has been unemployed for more than six months. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. The new expiration date to take advantage of this credit is on December 31, 2025.

It is advised that business owners talk to an accountant to answer questions and educate on these strategies and the most relevant tax changes to maximize tax savings as well as make planning decisions for future years.

Submitted by: Pointwest Technologies Corporation,
through Lucy Flores, PACCO

 

The Information Technology-Business Process Outsourcing (IT-BPO) industry in the Philippines has been one of the most dynamic and fastest-growing sectors in the country. The country attracted foreign companies and investors in the sub-sectors of knowledge process outsourcing and back offices, call centers, software development, medical transcription, engineering design, game development, and animation. With its exponential growth, the industry is now a major player in the global stage.

The Philippines expanded its capability to non-voice IT and BPM services for a broader global clientele and established itself as one of the top-tier destinations for high-quality services at more competitive price points. The expansion also went to horizontal BPM services in areas like finance and accounting, as well as vertical-focused solutions such as healthcare information services.

US-based companies have outsourced part of their services and business processes such as customer service centers, financial services, legal, R&D, learning management, and non-clinical healthcare services to name a few.

Industry Outlook

According to a recalibration study by the Everest Group, the Philippine IT-BPM industry’s revenue growth rose by 8% with headcount growth at 12% in 2021. It is expected to be in the double digits in 2022 led by digital transformation – Big Data Analytics (BDA), Automation and Artificial Intelligence (AI), and Cloud Computing. Global In-house Centers (GICs) and Health Information Management Services (HIMS) are poised for growth despite the ongoing pandemic.

 

Submitted by:
Pointwest Technologies Corporation (www.pointwest.com.ph)

Source:
2021/22 Philippines IT & BPO Industry Performance and Outlook
https://outsourcing-journal.org/philippines-it-bpo-industry-performance-and-outlook/?cookie-state-change=1647313081620