Article by:
Anna Leah Gonzales
MANILA – The Fiscal Incentives Review Board (FIRB) has approved the immediate and temporary implementation of work-from-home (WFH) arrangements for ecozone businesses amid a national energy emergency.
Under FIRB Resolution No. 005-2026 issued Friday, investment promotion agencies (IPAs) are authorized to allow up to 90 percent WFH for registered business enterprises (RBEs) with registered projects or activities.
IPAs may set a lower threshold of not less than 50 percent, depending on operational needs and circumstances.
RBEs will retain fiscal and non-fiscal incentives despite WFH arrangements, the FIRB said.
“We are extending full support to our investors as we navigate through this energy emergency, so they can remain competitive and keep their operations running smoothly," FIRB Chairperson and Finance Secretary Frederick Go said.
"In line with our promise in the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, we are prepared to provide a responsive incentives regime that not only safeguards workers, but supports investors and their businesses,” he added.
The FIRB cited Rule 24, Section 3 of the CREATE MORE Act implementing rules and regulations, which allows temporary measures for RBEs affected by exceptional circumstances.
The Department of Finance warned that non-compliance with IPA-imposed thresholds will result in penalties, including payment of regular income tax based on the extent of excess WFH usage.
RBEs must notify IPAs, submit asset inventories and surety bonds, and provide monthly reports on assets taken outside economic zones. Movement of tax- and duty-free assets will require prior approval and bonding.
IPAs may impose additional compliance measures and must report these to the FIRB for monitoring. RBEs must maintain export revenue levels and keep current employment levels regardless of WFH arrangements.
The temporary policy will remain in force for one year unless extended or lifted under Executive Order No. 110, s. 2026, which declared the national energy emergency.
“Through this temporary measure, we are striking the right balance between flexibility and accountability, ensuring that businesses can continue operating safely and efficiently while upholding fiscal discipline and protecting government revenues,” Go said. (PNA)
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