RMC No. 101-2026: FIRB Resolution 011-26 Lets RBEs Defer ITH, SCIT, or EDR During the Energy Emergency
RMC No. 101-2026, dated September 15, 2026, publishes Fiscal Incentives Review Board (FIRB) Resolution No. 011-26, which lets Investment Promotion Agencies (IPAs) defer a Registered Business Enterprise’s (RBE) income tax holiday, special corporate income tax, or enhanced deductions entitlement, or move its commercial operations start date, because of the national energy emergency. The measures apply from March 24, 2026 for one year, and income tax for the deferment period remains payable.
Prepare Your RBE's BIR Filings Faster FREE →What does RMC No. 101-2026 publish? #
RMC No. 101-2026 attaches, as Annex “A,” FIRB Resolution No. 011-26 dated May 18, 2026, titled “Temporary Measures for Registered Business Enterprises in Light of the State of National Energy Emergency,” for the information and guidance of BIR officials, employees, and others concerned. It is a publication circular: the operative measures come from the FIRB resolution, issued under Rule 24 of the Implementing Rules and Regulations (IRR) of Title XIII of the National Internal Revenue Code (NIRC).
The circular describes its scope in these words:
“The resolution was issued pursuant to Rule 24 of the Implementing Rules and Regulations of Title XIII of the National Internal Revenue Code of 1997, as amended, and prescribes temporary measures that may be adopted by Investment Promotion Agencies (IPAs) in support of RBEs affected by the national energy emergency declared under Executive Order (EO) No. 110, s. 2026.”
— BIR, RMC No. 101-2026, first paragraph
Reyes Tacandong & Co.’s September 2026 Tax Tweets records the circular as posted on the BIR website on September 29, 2026 and summarizes the same two measures.
What triggered the measures: Executive Order No. 110? #
Executive Order (EO) No. 110, s. 2026, signed on March 24, 2026, declared a state of national energy emergency in the Philippines, which is the event RMC No. 101-2026 refers to when it speaks of the “fuel crisis.” The FIRB measures are tied to that declaration and to its duration.
SunStar reports the declaration was made on Tuesday, March 24, 2026, citing the “imminent danger posed upon the availability and stability of the country’s energy supply.” This guide covers only the tax-incentive measures in Resolution No. 011-26. For another energy-related BIR issuance, see RMC No. 100-2026 on LPG and kerosene excise tax suspension.
What are the two temporary measures? #
FIRB Resolution No. 011-26 lists two measures an IPA may adopt for an affected RBE: deferment of ITH, SCIT, or EDR entitlement for a period matching the disruption, and movement of the start of commercial operations with full entitlement to incentives. Here ITH means Income Tax Holiday, SCIT means Special Corporate Income Tax, and EDR means Enhanced Deductions Regime.
“Deferment of the entitlement to Income Tax Holiday (ITH), Special Corporate Income Tax (SCIT), or Enhanced Deductions Regime (EDR) for a period corresponding to the extent that the RBE’s operations have been affected or disrupted by the fuel crisis; provided that the RBE shall pay the income tax due for the taxable year covered by the period of deferment; and Movement of the start of commercial operations with full entitlement to incentives under the terms and conditions of the registered project or activity.”
— BIR, RMC No. 101-2026, list of measures, items 1 and 2 (the resolution’s “temporary measures”)
| Measure | What it does | Condition stated in the circular |
|---|---|---|
| 1. Deferment | Defers ITH, SCIT, or EDR entitlement for a period matching how far operations were affected or disrupted by the fuel crisis | RBE pays the income tax due for the taxable year covered by the deferment period |
| 2. Movement of start of commercial operations | Moves the start date while keeping full incentive entitlement | Under the terms and conditions of the registered project or activity |
How long do the measures last? #
The measures took effect on March 24, 2026, the date EO No. 110 was issued, and remain in force for one year unless EO No. 110 is extended or lifted by the President. If the emergency is extended, the circular’s wording indicates the measures run with it.
“Pursuant to the Resolution, the foregoing temporary measures shall be effective from March 24, 2026 and shall remain in force and effect for one (1) year, unless EO No. 110, s. 2026 is otherwise extended or lifted by the President.”
— BIR, RMC No. 101-2026, paragraph following the list of measures
The circular is also dated September 15, 2026, later than the March 24, 2026 effective date, so the effective date reaches back to the start of the emergency.
Worked example: a three-month deferment #
The circular does not prescribe a computation, so the following is a fictional illustration of how a deferment could be read: income tax is paid on the covered period, and the incentive entitlement is pushed back. Assume Mindoro Components Corp., a fictional manufacturer registered with an IPA, has an ITH starting January 1, 2026, and its operations were disrupted by fuel shortages for three months. Assume its IPA approves a three-month deferment.
- The ITH entitlement is deferred for a period corresponding to the disruption (three months here).
- For the taxable year covered by that deferment period, the RBE pays the income tax due. If taxable income for the affected period were P8,000,000 and the regular 25% corporate income tax rate applied (an assumption for the example only; see corporate income tax rate under the CREATE Act), the tax would be P2,000,000.
- The RBE keeps the incentives under its registered project terms for the remaining entitlement period, as shifted by the IPA’s approval.
How the covered period is measured, and the exact approval, come from the IPA, not from the circular.
How do the measures relate to CREATE and CREATE MORE incentives? #
The measures do not create a new incentive; they adjust the timing of existing ITH, SCIT, and EDR entitlements that RBEs receive under the CREATE framework, as amended by CREATE MORE. Our guide to CREATE MORE Act incentives for RBEs explains how SCIT and Enhanced Deductions can be elected outright without ITH first, and PEZA vs BOI compares the two main IPAs.
For payors, ordinary withholding questions on RBE income are separate; see Does a CREATE MORE RBE still get withheld BIR Form 2307?. RMC No. 101-2026 does not address withholding, VAT, or application procedures.
Frequently asked questions #
Five questions RBEs and their accountants ask about RMC No. 101-2026, answered in full so each answer can stand alone.
What is RMC No. 101-2026? #
RMC No. 101-2026, dated September 15, 2026, is a BIR circular that publishes Fiscal Incentives Review Board (FIRB) Resolution No. 011-26 dated May 18, 2026. The resolution prescribes temporary measures that Investment Promotion Agencies may adopt for Registered Business Enterprises affected by the national energy emergency declared under Executive Order No. 110, s. 2026.
What are the two temporary measures in FIRB Resolution No. 011-26? #
The first measure is deferment of entitlement to the Income Tax Holiday, Special Corporate Income Tax, or Enhanced Deductions Regime for a period corresponding to the extent the RBE’s operations were affected or disrupted by the fuel crisis. The second is movement of the start of commercial operations with full entitlement to incentives under the terms of the registered project or activity.
Does an RBE that defers its incentive still pay income tax? #
Yes, for the deferment period. RMC No. 101-2026 states that the deferment applies provided the RBE pays the income tax due for the taxable year covered by the period of deferment. The deferment moves when the incentive entitlement applies; it does not exempt that period from income tax.
How long do the FIRB temporary measures last? #
Per RMC No. 101-2026, the measures are effective from March 24, 2026 and remain in force for one year, unless Executive Order No. 110, s. 2026 is otherwise extended or lifted by the President. Executive Order No. 110 declared the state of national energy emergency on March 24, 2026.
Who decides whether an RBE gets the deferment or the moved start date? #
The circular says the measures are those that may be adopted by Investment Promotion Agencies (IPAs) such as PEZA or BOI, so adoption sits with the registering agency rather than the BIR. RMC No. 101-2026 does not describe an application procedure, so an RBE should ask its IPA how to apply.
Summary #
RMC No. 101-2026 publishes FIRB Resolution No. 011-26, which lets Investment Promotion Agencies defer ITH, SCIT, or Enhanced Deductions entitlement, or move the start of commercial operations, for RBEs affected by the national energy emergency under Executive Order No. 110, s. 2026. The measures run from March 24, 2026 for one year unless the emergency is extended or lifted, and income tax for the deferment period remains payable. For the incentive regimes themselves, read CREATE MORE Act incentives for RBEs; for the agencies, read PEZA vs BOI.