The Philippine government signed Executive Order No. 121 on 29 July 2026, establishing the Electric Vehicle Incentive Strategy (EVIS) Program under Republic Act No. 11697 to offer Fixed Investment Support of up to 40% of capital costs and Production Volume Incentives to qualified EV manufacturers.
The Philippines has introduced a new package of tax incentives for the electric vehicle sector under the Electric Vehicle Incentive Strategy (EVIS) Programme, approved through Executive Order No. 121.
Executive Order No. 121 establishes the EVIS Programme in the Philippines pursuant to Republic Act No. 11697 (the Electric Vehicle Industry Development Act or EVIDA).
Approved by the Fiscal Incentives Review Board (FIRB) under Resolution No. 009-26 on 18 May 2026 and signed on 29 July 2026, the programme is designed to narrow the cost gap between electric vehicles (EVs) and traditional vehicles, shift local manufacturing toward electric mobility, and position the Philippines as a regional automotive manufacturing hub.
Qualified manufacturers can receive Fixed Investment Support covering up to 40% of capital costs and Production Volume Incentives for every unit assembled domestically. To ensure accountability, the order creates an Inter-Agency Committee to oversee registration, monitor performance standards, and audit the participants’ compliance with sustainability goals.
The key measures are as follows:
Coverage
The EVIS programme targets both hybrid vehicles (HEVs, PHEVs, FCEVs) and battery EVs (BEVs), covering passenger and commercial segments plus their parts and components.
Fiscal support package
Money moves through two channels. Fixed Investment Support (FIS) covers capex on tooling, R&D, engineering, start-up costs, and training, for up to 10 years from model registration. BEVs get 40%, hybrids get 30%. Production Volume Incentive (PVI) pays up to 12% of the ex-factory price per unit, capped at PhP 200,000, running for up to 10 years from the start of production.
Eligibility and technical requirements
To qualify for FIS, a company needs PHP 5 billion in new investment and has to bring the enrolled model to market within three years of registration.
PVI requires actual local assembly of the mandatory components and a production plan of at least 10,000 units. Each participant can enrol a maximum of two EV models. If more companies apply than the programme can support, the Board of Investments (BOI) will select the top four based on economic impact. Everyone enrolled also needs to meet UNR 100 and/or UNR 136 standards, plus commit to battery recycling and 10 years of spare parts support.
Funding cap and tax payment certificates
The whole programme is capped at PHP 60 billion, funded through the National Expenditure Programme (NEP) and General Appropriations Act, with no single model allowed to draw more than PHP 15 billion. Instead of cash, companies get Tax Payment Certificates (TPCs) they can use against income tax, excise tax, VAT, or import duties. These certificates aren’t transferable.
Governance and restrictions
BOI runs the show as lead agency, backed by the IAC-EV committee (DOF, DOE, DOTr, DBM). Companies can’t double-dip between EVIS and Title XIII incentives under the Tax Code. BOI also audits participants to catch parts trading, and anyone who misses their investment or three-year deadline faces refunds, forfeiture, fines, or gets bounced from the programme entirely.
The EVIS programme is effective from 30 July 2026.
