Work-from-home setup okay for ecozone firms
Registered business enterprises (RBEs) in economic zones and free port areas can now adopt work-from-home setups for as much as 90 percent of their workforce following a directive from the Fiscal Incentives Review Board (FIRB) in response to the national energy emergency.
In Resolution No. 005-2026 issued on Friday, the FIRB said the temporary measure aims to help RBEs sustain operations despite power constraints caused by the energy shock triggered by the Middle East war, while allowing them to retain their fiscal and nonfiscal incentives.
The resolution also authorizes investment promotion agencies (IPAs) to impose a lower threshold, but not below 50 percent, depending on the nature of business operations.
However, RBEs that fail to comply with the IPA-imposed threshold will be penalized by paying regular income tax equivalent to the extent by which the threshold is exceeded.
“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 [also] supports investors and their businesses,” FIRB chair and Finance Secretary Frederick Go said.
“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 added.
The measure will take effect retroactively from March 24 and will remain in place for one year, unless extended or lifted by the President.
Welcome development
The resolution came after the Philippine Economic Zone Authority requested the FIRB to expand the previous 50-percent work-from-home limit to as much as 100 percent following the declaration of a state of national energy emergency.
The IT and Business Process Association of the Philippines welcomed the move, describing it as a practical business continuity measure for the information technology-business process management (IT-BPM) sector.
“For the IT-BPM sector, this development provides immediate relief for both companies and their workforce, helping ease cost pressures while enabling more flexible work arrangements,” the group said in a statement on Saturday.
