Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by CIBAC Party-List Representative 
Eduardo “Bro. Eddie” C. Villanueva 
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 law 
recognized the need to promote the welfare of employees in light of 
technological developments that opened up alternative avenues for 
employees to carry out their work. 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.1 At the time of its passage, the Act was principally meant to 
address the worsening traffic situation in Metro Manila and to promote 
work-life balance. Two years after its passage, the WFH Law became 
pivotal as the Filipino labor force shifted to alternative modes of work, 
1 Section 4, Republic Act No. 11165 
July 25, 2022
8:00 am
2281


especially online, because of the nationwide lockdown brought about by 
the COVID-19 pandemic. 
According to the 2021 Work Reimagined Employee Survey 
conducted by Ernst & Young, 9 in 10 employees located in Southeast Asia 
prefer flexible work than the traditional office setup.2 Meanwhile, in a 
survey conducted by Robert Walters, 8 out of 9 professionals in the 
Philippines are satisfied with remote working arrangements, with 9 out of 
10 noting a similar or increased level of productivity while at home.3 In 
addition, more than 9 in 10 professionals want more work from home 
arrangements in the future, with an offer of such arrangement a significant 
factor in determining employee job satisfaction in job selection.4  
In the Philippines, the WFH arrangement was instrumental for the 
IT-BPO sector in ensuring business continuity despite nationwide 
lockdowns. In fact, the arrangement facilitated the creation of 23,000 new 
jobs in 2020, and another 100,000 new jobs in 2021. 5  Meanwhile, 
revenues also increased by around 12% in 2021, reaching a total of $28.8 
billion.6 According to the Department of Trade and Industry, the IT-BPO 
was the only sector that did not lay off workers and even continued to hire 
during the pandemic, which in turn, helped the economy in it’s recover, 
especially in generating jobs and contributing to dollar revenue 
generation.7  
However, the WFH Law’s merits have not been fully realized for the 
IT-BPO sector. Earlier this year, the Fiscal Incentive Review Board (FIRB) 
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.  
2 https://philstarlife.com/self/425740-ey-survey-employees-in-ph-sea-countries-want-flexible-work-to-stay-post-covid-19 
3 https://www.robertwalters.com.ph/content/dam/robert-walters/country/the-philippines/files/surveys/the-truth-about-working-
from-home.pdf 
4 Id. 
5 https://business.inquirer.net/342640/april-1-return-to-office-deadline-bucked-by-bpos#ixzz7Mqfxquak 
6  Id. 
7 Id. 


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. 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _____ 
Introduced by CIBAC Party-List Representative 
Eduardo “Bro. Eddie” C. Villanueva 
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 House of Representatives of the 
1 
Philippines in Congress assembled:
2 
3 
SECTION 1. Chapter VI, Section 309 of the National Internal 
4 
Revenue Code, as amended by Republic Act No. 11534, otherwise known 
5 
as the “Corporate Recovery and Tax Incentives for Enterprises Act” 
6 
(CREATE) is hereby amended to read as follows: 
7 
8 
SEC. 309. Prohibition on Registered Activities. – A 
9 
qualified registered project or activity under an 
10 
Investment 
Promotion 
Agency 
administering 
an 
11 
economic zone or freeport shall, AS FAR AS 
12 
PRACTICABLE, be exclusively conducted or operated 
13 
within the geographical boundaries of the zone or freeport 
14 
2281


 
being administered by the IPA in which the project or 
1 
activity 
is 
registered: 
PROVIDED, 
THAT 
2 
NOTWITHSTANDING ANYTHING TO THE CONTRARY, 
3 
SUCH 
REGISTERED 
BUSINESS 
ENTERPRISES 
4 
SHALL 
HAVE 
THE 
OPTION 
TO 
OFFER 
A 
5 
TELECOMMUTING PROGRAM TO ITS EMPLOYEES 
6 
ON A VOLUNTARY BASIS, PURSUANT TO REPUBLIC 
7 
ACT NO. 11165, OTHERWISE KNOWN AS THE 
8 
“TELECOMMUTING ACT,”  UPON SUCH TERMS AND 
9 
CONDITIONS AS THEY MAY MUTUALLY AGREE, AND 
10 
IN 
COMPLIANCE 
WITH 
THE 
RULES 
AND 
11 
REGULATIONS AS THE INVESTMENT PROMOTION 
12 
AGENCY 
MAY 
PRESCRIBE: 
 Provided, 
That 
a 
13 
registered business enterprise may conduct or operate 
14 
more than one qualified registered project or activity 
15 
within the same zone or freeport under the same 
16 
Investment Promotion Agency: Provided, further, That 
17 
any project or activity conducted or performed outside the 
18 
geographical boundaries of the zone or freeport shall not 
19 
be entitled to the incentives provided in this Act, unless 
20 
such project or activity is conducted or operated under 
21 
another Investment Promotion Agency, OR SUCH 
22 
PROJECT OR ACTIVITY IS CARRIED OUT IN 
23 
ACCORDANCE WITH THE TELECOMMUTING ACT 
24 
AND THE RELEVANT RULES AND REGULATIONS OF 
25 
THE 
CONCERNED 
INVESTMENT 
PROMOTION 
26 
AGENCY ON THE CONDUCT OF PROJECTS OR 
27 
ACTIVITIES OUTSIDE OF THE ZONE OR FREEPORT. 
28 
 
29 
  
SECTION 2. Implementing Rules and Regulations. –  Within sixty 
30 
(60) days from the effectivity of this Act, the Secretary of Finance, in 
31 
consultation with the Department of Trade and Industry, the 
32 
Commissioner of Internal Revenue, the Board of Investments, the 
33 
Philippine Economic Zone Authority and other Investment Promotion 
34 
Agencies, shall promulgate the necessary rules and regulations to 
35 
implement the provisions of this Act . Failure to promulgate the rules and 
36 


 
regulations shall not prevent the implementation of this Act upon its 
1 
effectivity.  
2 
 
3 
  
SECTION 3. Separability Clause. –  Any portion or provision of this 
4 
Act that is declared unconstitutional or invalid shall not have the effect of 
5 
nullifying other portions or provisions hereof as long as such remaining 
6 
portions can still subsist and be given effect in their entirety. 
7 
 
8 
  
SECTION 4. Repealing Clause. – The relevant provisions of 
9 
Republic Act No. 7916 or “The Special Economic Zone Act of 1995,” 
10 
Republic Act No. 7227, as amended or “The Bases Conversion And 
11 
Development Act of 1992,” Republic Act No. 7922 or “The Cagayan 
12 
Special Economic Zone Act of 1995,” Republic Act No. 7903 or “The 
13 
Zamboanga City Special Economic Zone Act of 1995,” Presidential 
14 
Decree No. 538 or the Act “Creating And Establishing The Phividec 
15 
Industrial Authority And Making It A Subsidiary Agency Of The Philippine 
16 
Veterans Investment Development Corporation Defining Its Powers, 
17 
Functions And Responsibilities, And For Other Purposes,” Republic Act 
18 
No. 9490 or “The Aurora Special Economic Zone Act of 2007,” Republic 
19 
Act No. 9728 or the “Freeport Area of Bataan (FAB) Act of 2009,” Republic 
20 
Act 9593 or “The Tourism Act of 2009,” and all other similar laws and 
21 
provisions of laws for all other Investment Promotion Agencies as defined 
22 
under Section 293(H) of the National Internal Revenue Code, as 
23 
amended.  
24 
 
25 
  
SECTION 5. Effectivity. –  This Act shall take effect fifteen (15) 
26 
days after its publication in the Official Gazette or in a newspaper of 
27 
general circulation. 
28 
 
29 
  
Approved, 
30