Electric Vehicle Incentives in the Philippines: EVIDA Rules and Compliance

Electric vehicle incentives in the Philippines operate on two tracks. The first is the Electric Vehicle Industry Development Act (EVIDA), or Republic Act No. 11697, whose implementing rules create the regulatory framework and mandate EV adoption in fleets and buildings. The second is the tax system: under Republic Act No. 12066, which amended the National Internal Revenue Code, EV-related manufacturing activities may be entitled to incentives if included in the Strategic Investment Priority Plan (SIPP), such as an Income Tax Holiday, the Special Corporate Income Tax, or the Enhanced Deductions Regime. The Board of Investments develops the EV incentive strategy.

What EVIDA and its IRR cover

The EVIDA-IRR applies to the whole EV industry — manufacture, assembly, importation, construction, installation, maintenance, trade and utilization, research and development, and regulation of electric vehicles, charging stations, related equipment, parts, components, batteries, and support infrastructure, including recycling and waste handling.

An EV is any vehicle with at least one electric drive for propulsion. The rules recognize Battery EVs, Hybrid EVs, Light EVs, and Plug-in Hybrid EVs. Light EVs include electric scooters, electric bicycles, and personal transport weighing less than 50 kilograms.

The fiscal incentives for EV manufacturing

Section 27 of the EVIDA-IRR states that activities under the law undergo an evaluation to determine inclusion in the SIPP and possible entitlement to incentives under Executive Order No. 226, otherwise known as the Omnibus Investments Code of 1987. Under the National Internal Revenue Code, as amended by Republic Act No. 12066, registered business enterprises may avail of an Income Tax Holiday, the Special Corporate Income Tax, the Enhanced Deductions Regime, duty exemption on importation of capital equipment, and VAT exemption on importation and VAT zero-rating on local purchases.

Mandatory EV share in fleets

Covered entities must ensure that at least five percent (5%) of their fleet, whether owned or leased, are EVs within the timeframe in the Comprehensive Roadmap for the Electric Vehicle Industry (CREVI). Covered fleets include industrial and commercial companies such as cargo logistics, freight forwarding, parcel and food delivery, tour agencies, hotels, and power and water utilities; public transport operators; and LGUs, national government agencies, and GOCCs. The CREVI sets the timeline and the gradual increase until the entire fleet is electric.

Parking slots and charging stations

Private and public buildings constructed after EVIDA took effect must designate dedicated parking slots for EVs, including Light EVs. If a building has 20 or more parking slots, at least five percent (5%) must be dedicated to EVs. Existing buildings must comply within the CREVI timeframe. No LGU permit for construction or renovation may be issued unless these requirements are met.

Charging stations may be Own-Use or Commercial Use. EVCS Providers must be accredited by the DOE, and Commercial Use Charging Stations and Battery Swapping Stations must unbundle their charging fees.

Who regulates the industry

The DOE is the primary agency promoting EV adoption and developing charging stations. The Energy Regulatory Commission regulates distribution utility rates for charging stations. The DOTr handles registration and franchising, and may exempt Light EVs for exclusive private use from registration fees. The DTI promotes local manufacturing, while LGUs issue Certificates of Inspection for charging stations and include green routes in their transport plans.

Frequently asked questions

Are there tax incentives for buying an electric vehicle in the Philippines? The fiscal incentives under EVIDA focus on manufacturing activities included in the SIPP, such as income tax holidays and duty exemptions. Incentives for individual buyers depend on separate issuances, so the specific benefit should be confirmed with the implementing agency.

How many EVs must a company fleet have? At least five percent (5%) of a covered entity's fleet, owned or leased, must be EVs within the CREVI timeline.

Do buildings need EV parking slots? Yes. New private and public buildings must designate EV parking slots, and buildings with 20 or more slots must allocate at least five percent (5%) to EVs.

Practical takeaways

• EV incentives in the Philippines come from EVIDA (RA 11697) and the tax incentives under the National Internal Revenue Code as amended by RA 12066.
• Manufacturing activities must be evaluated for inclusion in the SIPP to enjoy fiscal incentives.
• Covered fleets must reach a five percent (5%) EV share within the CREVI timeline.
• Buildings with 20 or more parking slots must dedicate at least five percent (5%) to EVs.
• Charging station providers must be DOE-accredited and must unbundle their fees.

Primary sources

The rules discussed above are drawn from the following primary sources, as published in the Official Gazette and the national statute book.

• IRR of REPUBLIC ACT NO. 11697 - IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 11697 OF THE ELECTRIC VEHICLE INDUSTRY DEVELOPMENT ACT

• REPUBLIC ACT NO. 12066 - AN ACT AMENDING SECTIONS 27, 28, 32, 34, 57, 106, 108, 109, 112, 135, 237-A, 269, 292, 293, 294, 295, 296, 297, 300, 301, 308, 309, 310, AND 311, AND ADDING NEW SECTIONS 135-A, 295-A, 296-A, AND 297-A OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED, AND FOR OTHER PURPOSES

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.