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Manila Bulletin devider Business devider Trade & Industry devider Gov't lets firms defer tax perks amid fuel crisis

Gov't lets firms defer tax perks amid fuel crisis

Published Aug 28, 2026 05:21 pm

The government has allowed companies registered with investment promotion agencies (IPAs) to temporarily defer their tax incentives in a bid to help them recover from the impact of the ongoing fuel crisis.

In Resolution No. 011-2026 dated May 18 but only made public on Aug. 26, the Cabinet-level interagency Fiscal Incentives Review Board (FIRB) authorized IPAs to adopt the measure in support of affected registered business enterprises (RBEs).

Under the policy, RBEs may apply to their respective IPAs to defer their entitlement to the income tax holiday (ITH), special corporate income tax (SCIT), or enhanced deductions regime.

The period of deferment will correspond to the extent to which an RBE’s operations have been affected or disrupted by the fuel crisis caused by the war in the Middle East, according to FIRB.

Once granted, the RBE shall pay the income tax due for the taxable year covered by the deferred period.

FIRB is also allowing RBEs to postpone the start of commercial operations of their projects while preserving their full entitlement to approved incentives.

FIRB said these measures aim to ensure “business continuity, sustain investments, protect employment, and preserve the country’s competitiveness as an investment destination.”

Since the war in the Middle East broke out in February, FIRB noted that higher fuel prices have been disrupting logistics and supply chains, heightening operational costs for RBEs.

On top of this, exporting RBEs are also being confronted with the war’s direct and indirect impact on trade flows. Meanwhile, RBEs serving the domestic market are facing weaker demand amid inflation.

Through the deferment of incentives, the government seeks to prevent companies from essentially losing the value of their time-limited tax incentives during a period when they may be earning little taxable income.

Under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, incentives such as the ITH are granted for a certain number of years from the start of commercial operations.

RBEs register their projects or activities with IPAs to qualify for fiscal and non-fiscal incentives aimed at supporting their operations and encouraging investments.

FIRB said the temporary deferment measures took effect on March 24 and shall remain in force for one year, unless Executive Order (EO) No. 110 is lifted or extended.

President Ferdinand Marcos Jr. issued EO 110 to declare the Philippines under a state of national energy emergency due to the war in the Middle East and its threat to the country’s energy supply.

The FIRB resolution was signed by then Acting Department of Budget and Management (DBM) Secretary Rolando U. Toledo, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan, Acting Executive Secretary Ralph G. Recto, FIRB Co-Chairperson and Department of Trade and Industry (DTI) Secretary Ma. Cristina A. Roque, and FIRB Chairperson and Department of Finance (DOF) Secretary Frederick D. Go.

FIRB earlier approved the expansion of the work-from-home (WFH) policy to 90 percent of the workforce from the previous 50 percent to help RBEs ease the burden of higher fuel costs on their employees.

Related Tags

Fiscal Incentives Review Board (FIRB) investment promotion agencies (IPAs)
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