The Fiscal Incentives Review Board (FIRB) has approved a temporary work-from-home (WFH) arrangement for registered business enterprises (RBEs) operating in economic zones and freeport areas, following the declaration of a national energy emergency by the government.
Under FIRB Resolution No. 005-2026 issued on April 10, RBEs with registered projects or activities may allow up to 90% of their workforce to work remotely without losing their fiscal and non-fiscal incentives. The measure aims to help firms maintain operations amid power supply concerns.
The resolution implements provisions under the implementing rules of Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act (CREATE MORE Act), which allows businesses affected by exceptional circumstances to adopt temporary operational adjustments.
The policy follows the declaration of a national energy emergency under Executive Order No. 110 (2026) signed by Pres. Ferdinand R. Marcos Jr. on March 24 in response to energy supply risks linked to the ongoing conflict in the Middle East.
Under the resolution, investment promotion agencies (IPAs) are authorized to set WFH thresholds for companies, provided that at least 50% of their workforce remains on-site depending on operational requirements.
RBEs that exceed the allowable WFH ratio set by their respective IPAs will face penalties. Non-compliant firms must pay the regular income tax multiplied by the amount by which the threshold is exceeded, calculated as the monthly average of the excess.
Companies adopting the temporary WFH arrangement must notify their respective IPAs and submit documentation such as asset inventories, surety bonds, and periodic reports. Monthly updates must also be provided on assets taken outside economic or freeport zones.
The movement of tax- and duty-free imported assets outside these zones will require prior approval from the IPA and the posting of a surety bond to ensure proper accounting and protection of government revenues.
IPAs may also impose additional monitoring measures and must report these to the FIRB for evaluation.
Despite the temporary remote work setup, RBEs are required to maintain their export revenue commitments and must not reduce their current workforce.
The policy took effect on March 24, 2026 and will remain in force for one year unless the energy emergency declared under EO 110 is lifted or extended.
“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,” said FIRB chairperson Frederick D. Go.
“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 added.
