“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. In line with our promise in the CREATE MORE Act, we are prepared to provide a responsive incentives regime that not only safeguards workers, but supports investors and their businesses,” FIRB Chairperson Frederick D. Go said.
As the country faces a state of national energy emergency, registered business enterprises (RBEs) in economic zones and freeport areas face risks to their day-to-day operations. To help businesses without disrupting their fiscal and non‑fiscal incentives, the Fiscal Incentives Review Board (FIRB) has approved the immediate and temporary implementation of work-from-home (WFH) arrangements.
This further operationalizes the investor-responsive provisions of the Implementing Rules and Regulations (IRR) of R.A. 12066, or the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE Act).
Rule 24, Section 3 of the CREATE MORE Act IRR provides that all RBEs affected by exceptional circumstances may be allowed to adopt temporary measures as may be reasonable to support their recovery.
With the President’s declaration of the state of national energy emergency in light of the ongoing conflict in the Middle East through Executive Order (EO) No. 110, s. 2026 on 24 March 2026, the Board’s coordinated efforts led to the issuance of FIRB Resolution No. 005-2026 on 10 April 2026, granting authority to investment promotion agencies (IPAs) to adopt up to 90% temporary WFH arrangements for RBEs with registered projects or activities.
Under the Resolution, RBEs may adopt WFH arrangements for up to 90% of their total workforce, referring to employees engaged in the registered project or activity of an RBE. Concurrently, the concerned IPA may impose a lower threshold of not less than 50% of the total workforce, depending on specific circumstances and the nature of operations of the RBE.
In keeping with fiscal discipline in the grant and administration of tax incentives, an RBE that fails to comply with its IPA‑imposed threshold will be penalized. The RBE will pay the regular income tax multiplied by the amount by which the threshold is exceeded. The excess will be calculated as the average of all excesses incurred during the month of noncompliance.
RBEs implementing temporary WFH arrangements shall notify their concerned IPA, submit the required asset inventory, surety bond, and related reports, and provide monthly updates on assets brought outside the zones. The IPA shall monitor compliance and impose penalties for noncompliance.
The movement of tax‑ and duty‑free imported assets outside economic or freeport zones shall require prior IPA approval and the posting of a surety bond to ensure proper accounting and protection of government revenues.
The concerned IPA may adopt additional measures to ensure compliance with the conditions imposed on the RBEs. With this, the IPAs must notify the FIRB of the additional measures for monitoring and evaluation purposes.
The RBE shall maintain the prescribed revenues from exports and shall not reduce its current number of employees, regardless of the authorized ratio or extent of WFH arrangements.
This temporary measure takes effect from 24 March 2026 and remains effective for one (1) year unless E.O No. 110, s. 2026 is otherwise extended or lifted by the President.
“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,” Secretary Go said.
