MANILA — The Fiscal Incentives Review Board (FIRB) has approved the temporary implementation of work-from-home (WFH) arrangements for ecozone-based businesses as the country deals with a national energy emergency.

Under FIRB Resolution No. 005-2026 issued Friday, investment promotion agencies (IPAs) are authorized to allow up to 90 percent WFH setup for registered business enterprises (RBEs) with registered projects or activities.

The resolution also allows IPAs to set lower limits, provided that on-site work does not go below 50 percent, depending on operational requirements.

Despite the shift to remote work, the FIRB said RBEs will continue to enjoy both fiscal and non-fiscal incentives.

“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,” FIRB Chairperson and Finance Secretary Frederick Go said.

“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,” he added.

The FIRB cited provisions under the CREATE MORE Act implementing rules that allow temporary adjustments for registered firms affected by exceptional circumstances.

However, the Department of Finance warned that non-compliance with the required WFH thresholds set by IPAs may result in penalties, including the imposition of regular income tax on the portion of operations exceeding allowable remote work levels.

Under the guidelines, RBEs are required to notify their respective IPAs, submit asset inventories and surety bonds, and provide monthly reports on equipment taken outside economic zones. Movement of tax- and duty-free assets will also require prior approval.

IPAs may impose additional compliance measures, which must be reported to the FIRB for monitoring. Firms are also required to maintain export revenue levels and keep employment stable despite the shift to remote work.

The temporary policy will remain in effect for one year unless extended or lifted under Executive Order No. 110, s. 2026, which declared the national energy emergency.

“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.