On 31 July 2026, the Philippine Department of Finance (DOF) and the Fiscal Incentives Review Board (FIRB) announced strong support for Executive Order (EO) No. 121, which formally establishes the Electric Vehicle Incentive Strategy (EVIS) Program. The EO, signed by President Ferdinand R. Marcos Jr., creates a comprehensive fiscal and non-fiscal incentive framework designed to accelerate the development of a globally competitive electric vehicle manufacturing ecosystem in the Philippines. The measure builds upon the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act, extending targeted incentives to EV manufacturers, parts suppliers, charging infrastructure developers, and battery technology investors. The EVIS Program aims to position the Philippines as a regional EV production hub, leveraging the country’s abundant nickel and cobalt reserves critical for battery production.
Key Takeaways
- Targeted Tax Incentives Under CREATE MORE Framework: EVIS participants gain access to enhanced income tax holidays (ITH) of up to 7 years, special corporate income tax (SCIT) rates of 5% on gross income in lieu of all national and local taxes, and duty-free importation of capital equipment, raw materials, and EV-specific components. The program introduces a tiered incentive structure where higher local content ratios and technology transfer commitments unlock longer ITH periods and deeper tax reductions.
- Strategic Investment Priority Plan Alignment: The 2026 Strategic Investment Priority Plan (SIPP) explicitly designates EV manufacturing, battery production, and charging infrastructure as Tier 1 priority activities, ensuring streamlined FIRB approval processes. Projects with investment capital exceeding PHP 10 billion qualify for expedited evaluation by the FIRB Technical Working Group, reducing approval timelines from 90 to 45 working days.
- Domestic Market Creation and Export Orientation: EO 121 mandates government agencies to procure at least 30% of new vehicle fleets as EVs by 2028, creating immediate domestic demand. The order also establishes an EV Industry Development Council chaired by the DOF to monitor implementation, resolve regulatory bottlenecks, and coordinate with ASEAN counterparts on cross-border EV supply chain integration.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
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