Businesses operating in economic zones and freeports can now let most of their workers stay home, as the government moves to ease the impact of the ongoing energy crisis.
The Fiscal Incentives Review Board (FIRB) has approved a temporary work-from-home (WFH) setup of up to 90% of employees for registered business enterprises (RBEs), without affecting the tax perks and incentives they receive.
The move comes after Ferdinand Marcos Jr. declared a national energy emergency under Executive Order No. 110 on March 24, 2026, following supply disruptions linked to the conflict in the Middle East.
“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.
Under the new rules, investment promotion agencies (IPAs) — such as those managing economic zones — can allow companies to shift up to 90% of their workforce to remote work. However, depending on the nature of operations, they may require at least 50% of employees to still report onsite.
The policy is part of the implementing rules of the CREATE MORE Act, which allows temporary adjustments for businesses during emergencies.
While companies are given flexibility, they must still follow strict rules to keep their incentives.
Firms must:
- Inform their zone authority before shifting to WFH
- Submit reports on equipment and assets used outside ecozones
- Provide monthly updates on operations
If companies exceed the allowed WFH limit, they will face penalties, including paying higher taxes on the excess portion.
There are also tighter controls on moving tax-free equipment outside ecozones. Companies must get approval and post a bond to ensure these assets are properly accounted for.
Despite the shift to remote work, companies are required to:
- Keep their current number of employees
- Maintain their export revenues
This ensures that while businesses get flexibility, jobs and economic output are protected.
“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.
The temporary WFH arrangement is effective from March 24, 2026 and will remain in place for up to one year, unless the energy emergency is lifted or extended earlier.