The Philippine IT and Business Process Management (IT-BPM) sector is set to benefit from a newly approved measure that allows companies in economic and freeport zones to adopt up to 90% work-from-home (WFH) arrangements. This development comes as a response to rising fuel costs and the need for more practical business continuity strategies.
The Fiscal Incentives Review Board (FIRB) approved the measure under Resolution No. 005-2026, which took effect on March 24, 2026. The policy, valid for one year unless extended, was proposed by the IT and Business Process Association of the Philippines (IBPAP) in collaboration with the Philippine Economic Zone Authority (PEZA).
Flexibility Amid Operational Challenges
"This reflects how strong industry-government collaboration can translate into practical solutions for the IT-BPM sector’s evolving operational needs", said Jack Madrid, IBPAP president and chief executive officer. He emphasized that the policy will ease cost pressures while allowing companies to maintain service delivery and meet global demands.
"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", Madrid added.
The policy aims to address operational difficulties brought on by high transportation costs, ensuring businesses can continue functioning without compromising their fiscal or non-fiscal incentives. Finance Secretary Frederick Go highlighted the significance of the measure, stating, "As the country faces a state of national energy emergency, registered business enterprises in economic zones and freeport areas face risks to their day-to-day operations. To help businesses without disrupting their fiscal and non-fiscal incentives, the FIRB has approved the immediate and temporary implementation of work-from-home arrangements."
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Conditions for Implementation
The FIRB resolution allows investment promotion agencies to implement WFH arrangements for up to 90% of registered business enterprises’ (RBEs) workforce. However, the agencies may impose lower thresholds, provided they are no less than 50% of the total workforce.
To comply, RBEs must notify their respective investment promotion agencies and provide necessary documentation, including monthly asset inventories and surety bonds. Additionally, tax- and duty-free imported assets may only be moved outside ecozones or freeport areas with prior agency approval.
Firms must also maintain their export revenue targets and existing employee numbers, regardless of their WFH ratios. Any non-compliance will result in penalties, including tax liabilities based on how much the threshold is exceeded.
Striking a Balance
The CREATE MORE Act, under which this policy is operationalized, aims to strike a balance between flexibility for businesses and government accountability. "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", added Go.
The IT-BPM sector and its workforce have welcomed this development as an essential step toward navigating a shifting economic landscape. With these measures in place, companies are better positioned to remain agile while supporting their employees’ well-being and productivity. At the same time, the policy ensures compliance with government regulations and upholds fiscal discipline during challenging times.