PRESIDENT Rodrigo Duterte signed last March 2, 2022 a law amending the Foreign Investments Act
The new law seeks to improve further the technology transfer, elevate foreign exchange generated out of exports and will pave the way for higher tax revenues.
Contained in Republic Act 11647 are the amendments to the Foreign Investments Act of 1991, particularly the creation of an Inter-Agency Investment Promotion Coordination Committee (IIPCC) that will be under the Department of Trade and Industry (DTI).
Under RA 11647, the IIPCC is tasked to take the lead efforts in luring more foreign investors to invest in the Philippines and establish the country as an ideal investment destination.
Through this new law, foreign investors will be allowed to invest on a domestic enterprise by up to 100 percent except when their participation is forbidden or limited by a smaller percentage.
The amended law also states that foreigners can now own small and small and medium sized enterprises with a minimum paid up capital of not less than US$100,000 and if majority of their employees are Filipinos and not less than 15 employees.
It also states that a foreigner that will enter an existing joint venture wherein the majority shareholder is an important partner, the name and address of his partners should be declared upon registration with the Securities and Exchange Commission (SEC).
On the other hand, businesses involved in export should register and comply with the National Internal Revenue Code to avail of tax benefits or incentives.