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The Fiscal Incentives Review Board approved temporary work-from-home arrangements of up to 90% for registered business enterprises in economic zones and freeport areas, effective March 24, 2026
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Policy covers firms in economic zones and freeport areas affected by the national energy emergency
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Up to 90% of the workforce may shift to WFH, subject to a minimum on-site threshold set by investment promotion agencies
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Measure applicable for up to one year unless extended or lifted
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Firms must comply with reporting, asset monitoring, and surety bond requirements
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Non-compliance triggers penalties, including higher tax liabilities
The Fiscal Incentives Review Board (FIRB) approved temporary work-from-home (WFH) arrangements of up to 90% for registered business enterprises in economic zones and freeport areas, effective March 24, 2026, as part of measures to mitigate operational risks arising from the country’s declared energy emergency.
FIRB Resolution No. 005-2026, issued on April 10, 2026, grants investment promotion agencies the authority to implement temporary WFH arrangements for registered business enterprises (RBEs) with registered projects or activities.
The resolution was triggered by President Ferdinand Marcos Jr.’s declaration of a state of national energy emergency under Executive Order No. 110 on March 24, 2026, the same date from which the temporary WFH measure takes effect.
READ: Marcos declares National Energy Emergency as global oil supply risks mount
Under the resolution, RBEs may assign up to 90% of employees engaged in registered projects or activities to remote work.
Investment promotion agencies (IPAs) retain the discretion to impose a lower threshold of at least 50%, calibrated to the specific circumstances and nature of each enterprise’s operations.
RBEs that fail to meet their IPA-assigned threshold will face financial penalties, specifically, the regular income tax rate applied to the amount by which the noncompliant excess exceeds the threshold, computed as the average of all excesses recorded during the month of noncompliance.
The measure operationalizes Rule 24, Section 3 of the Implementing Rules and Regulations of Republic Act 12066, or the CREATE MORE Act, which authorizes RBEs affected by exceptional circumstances to adopt temporary measures to support their recovery.
Finance secretary Frederick Go, who chairs the FIRB, said the board’s response was designed to deliver on the law’s promise to investors.
“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,” Go said in a news release.
The resolution comes with a set of compliance obligations. RBEs implementing WFH arrangements must notify their respective IPA, submit required asset inventories, post surety bonds, and provide monthly reports on any assets brought outside the economic or freeport zone.
Movement of tax- and duty-free imported assets outside zones requires prior IPA approval and a surety bond to protect government revenues. IPAs are required to monitor compliance and may impose additional measures, which must be reported to the FIRB for evaluation.
The WFH flexibility does not relax core economic performance obligations. RBEs must maintain their prescribed export revenue thresholds and are prohibited from reducing their current headcount, regardless of the extent of WFH arrangements authorized.
The authorization remains in effect for one year from March 24, 2026, unless EO No. 110 is extended or lifted earlier by the President.
Go said the framework was crafted to hold both objectives simultaneously. “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,” he said.— Michael Barcas
