Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ________ 
Introduced by Representative Hon. Christopher “Toff” P. De Venecia 
AN ACT 
 ALLOWING THE ADOPTION OF ALTERNATIVE WORK ARRANGEMENTS IN 
ENTERPRISES REGISTERED WITH INVESTMENT PROMOTION AGENCIES, 
AMENDING FOR THE PURPOSE SECTION 309 OF THE NATIONAL INTERNAL 
REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Republic Act No. 11165 or the Telecommuting or Work From Home (WFH) Law was 
signed into law on December 20, 2018.  The WFH Law provides that an employer and employee 
in the private sector may enter into a telecommuting program upon such terms and conditions 
based on their agreement. Two years after its passage, this law has realized its potential, as the 
Filipino labor force pivoted to alternative modes of work, brought about by the COVID-19 
pandemic.   
However, the WFH Law’s merits have not been fully realized for the IT-BPO sector – a 
sector that has been one of the prime economic movers of our country. Earlier this year, the Fiscal 
Incentive Review Board (FIRB), which was established through the passage of Republic Act No. 
11534, or the CREATE Act,  required employees of the IT-BPO sector to return to their offices 
located in economic zones by April 1, 2022; otherwise, the employers will lose their tax incentives.  
This order was made despite the clamor of IT-BPO employees to continue with WFH 
arrangements, in light of the ongoing COVID-19 pandemic, rising fuel prices and unprecedented 
inflation. This directive, which is based on a provision in the CREATE Law renders the WFH Law 
essentially nugatory in economic zones. 
This bill seeks to allow entities registered with Investment Promotion Agencies, such the 
Philippine Economic Zone Authority (PEZA) to enter into voluntary work-from-home 
arrangements with their employees, without losing their tax incentives. Indeed, adaptability has 
helped our country survive this pandemic, and we must ensure that flexibility emanates from our 
laws in light of the rapid technological developments and global best practices. 
The immediate passage of this measure is earnestly sought. 
REP. CHRISTOPHER “TOFF” P. DE VENECIA 
Fourth District, Pangasinan 
July 28, 2022
2:33 pm
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ________ 
Introduced by Representative Hon. Christopher “Toff” P. De Venecia 
AN ACT 
 ALLOWING THE ADOPTION OF ALTERNATIVE WORK ARRANGEMENTS IN 
ENTERPRISES REGISTERED WITH INVESTMENT PROMOTION AGENCIES, 
AMENDING FOR THE PURPOSE SECTION 309 OF THE NATIONAL INTERNAL 
REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representative of the Philippines in Congress 
assembled: 
SECTION 1. Chapter VI, Section 309 of the National Internal Revenue Code, as amended by 
Republic Act No. 11534, otherwise known as the “Corporate Recovery and Tax Incentives for 
Enterprises Act” (CREATE) is hereby amended to read: 
“SEC. 309. Prohibition on Registered Activities. - A qualified registered 
project or activity under an Investment Agency administering an economic zone or 
freeport shall, AS FAR AS PRACTICABLE, be exclusively conducted or 
operated within the geographical boundaries of the zone or freeport being 
administered by the IPA in which the project or activity is registered: PROVIDED, 
THAT NOTWITHSTANDING ANYTHING TO THE CONTRARY, SUCH 
REGISTERED BUSINESSES SHALL HAVE THE OPTION TO OFFER A 
TELECOMMUTING 
PROGRAM 
TO 
ITS 
EMPLOYEES 
ON 
A 
VOLUNTARY BASIS, PURSUANT TO REPUBLIC ACT NO. 11165, 
OTHERWISE KNOWN AS THE “TELECOMMUTING ACT”, UPON 
SUCH TERMS AND CONDITIONS AS THEY MAY MUTUALLY AGREE, 
AND IN COMPLIANCE WITH THE RULES AND REGULATIONS AS 
THE INVESTMENT AGENCY MAY PRESCRIBE: Provided, FURTHER, 
That a registered business enterprise may conduct or operate more than one 
qualified registered project or activity within the same zone or freeport under the 
same Investment Promotion Agency: Provided, [further] LASTLY, That any 
project or activity conducted or performed outside the geographical boundaries of 
the zone or freeport shall not be entitled to the incentives provided in this Act, 
unless such project or activity is conducted or operated under another Investment 
Promotion Agency, OR SUCH PROJECT OR ACTIVITY IS CARRIED OUT 
IN ACCORDANCE WITH THE TELECOMMUTING ACT AND THE 
RELEVANT RULES AND REGULATIONS OF THE CONCERNED 
INVESTMENT PROMOTION AGENCY ON THE CONDUCTS OF 
PROJECTS OR ACTIVITIES OUTSIDE OF THE ZONE OR FREEPORT.” 
SEC. 2. Implementing Rules and Regulations. - The Secretary of Finance, in consultation with the 
Department of Trade and Industry, the Commissioner of Internal Revenue, the Board of 
Investments, the Philippine Economic Zone Authority and other Investment Promotion Agencies 
shall promulgate the necessary rules and regulations to implement the provisions of this Act within 
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sixty (60) days from its effectivity. Failure to promulgate the rules and regulations shall not prevent 
the implementation of this Act upon its effectivity 
 
SEC. 3. Repealing Clause. – The relevant provisions of Republic Act No. 7916 or “The Special 
Economic Zone Act of 1995,” Republic Act No. 7227, as amended or “The Bases Conversion And 
Development Act of 1992,” Republic Act No. 7922 or “The Cagayan Special Economic Zone Act 
of 1995,” Republic Act No. 7903 or “The Zamboanga City Special Economic Zone Act of 1995,” 
Presidential Decree No. 538 or the Act “Creating And Establishing The Phividec Industrial 
Authority And Making It A Subsidiary Agency Of The Philippine Veterans Investment 
Development Corporation Defining Its Powers, Functions And Responsibilities, And For Other 
Purposes,” Republic Act No. 9490 or “The Aurora Special Economic Zone Act of 2007,” Republic 
Act No. 9728 or the “Freeport Area of Bataan (FAB) Act of 2009,” Republic Act 9593 or “The 
Tourism Act of 2009,” and all other similar laws and provisions of laws for all other Investment 
Promotion Agencies as defined under Section 293(H) of the National Internal Revenue Code, as 
amended.  
 
SEC. 9. Separability Clause. – Any portion or provision of this Act that is declared 
unconstitutional or invalid shall not have the effect of nullifying other portions or provisions hereof 
as long as such remaining portions can still subsist and be given effect in their entirety. 
 
SEC. 10. Effectivity. – This Act shall take effect fifteen (15) days after its publication in the Official 
Gazette or in a newspaper of general circulation. 
 
Approved,