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Manila Bulletin devider Business devider The Economy devider Gov't approves up to 90% work-from-home for ecozone firms amid energy emergency

Gov't approves up to 90% work-from-home for ecozone firms amid energy emergency

Published Apr 11, 2026 07:23 am

The interagency Fiscal Incentives Review Board (FIRB) has allowed registered business enterprises (RBEs) in economic zones and freeports to temporarily adopt work-from-home (WFH) arrangements of up to 90 percent of their workforce, following the declaration of a national energy emergency.

In a statement on Friday night, April 10, the Department of Finance (DOF) said FIRB’s move aims to help firms sustain operations without losing their fiscal and non-fiscal incentives amid risks posed by energy supply disruptions tied to ongoing Middle East tensions.

“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 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,” FIRB Chairperson and DOF Secretary Frederick D. Go said.

The policy, formalized under FIRB Resolution No. 005-2026 dated April 10, authorizes investment promotion agencies (IPAs) to implement flexible work arrangements for RBEs with registered projects or activities. While firms may adopt up to 90-percent WFH, IPAs may set a lower threshold of at least 50 percent, depending on operational requirements.

The measure operationalizes provisions under the implementing rules and regulations (IRR) of Republic Act (RA) No. 12066, or CREATE MORE, which allows temporary relief measures for firms affected by exceptional circumstances.

The energy emergency was declared through Executive Order (EO) No. 110 last March 24, citing risks from global supply shocks linked to geopolitical conflicts.

Under the guidelines, RBEs must notify their respective IPAs before implementing WFH arrangements and comply with reporting requirements, including submission of asset inventories, surety bonds, and regular updates on equipment deployed outside economic zones.

The movement of tax- and duty-free imported assets outside ecozones will require prior IPA approval and the posting of a surety bond to safeguard government revenues.

Firms that fail to comply with the prescribed WFH thresholds will face penalties, including payment of regular income tax on excess noncompliance, computed based on the average breach over a given month.

FIRB also said companies must maintain export revenue levels and preserve their current workforce size despite adopting remote work setups.

The temporary measure is retroactively effective from March 24, 2026 and will remain in force for one year, unless lifted or extended 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,” Go said.

Earlier, the Philippine Economic Zone Authority (PEZA) had pushed for allowing up to 100-percent WFH for ecozone firms to help them cope with operational risks, particularly in the information technology and business process management (IT-BPM) sector.

FIRB oversees and approves the grant and administration of tax incentives to ensure they are performance-based, targeted, and aligned with the country’s fiscal and investment priorities.

Related Tags

Fiscal Incentives Review Board (FIRB) Department of Finance (DOF) Frederick D. Go work from home (WFH) investment promotion agency (IPA) CREATE MORE Act state of national energy emergency Middle East war Philippine Economic Zone Authority (PEZA)
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