FOREIGN INVESTMENTS f.

CHED
g. TESDA
Investment – equity participation in any
4. 4 representatives consist of:
enterprise organized under the law of the
a. National capital region
Philippines and recorded in the enterprise stock
b. Luzon
and transfer book or registry of ownership
c. Visayas
Foreign Investments – equity investment made d. Mindanao
by a non-Philippine national in the form of
foreign exchange or transfer of other assets.
Duly registered with BSP POWERS AND FUNCTIONS

Practice of Profession – activity rendered and 1. Establish both medium- and long-term
performed by registered and duly licensed foreign investment promotion and
professional or holder of special temporary marketing plan (FIPMP)
permit 2. Design a comprehensive marketing
strategy and campaign, promoting the
Pipeline transportation - sector which includes
country as a desirable investment area
transport of goods or materials through a
3. Encourage and support research and
pipeline such as crude, refined petroleum,
development in priority areas indicated
natural gas, biofuels, other chemically stable
in FIPMP
substance.
4. Monitor actual performance against
targets in FIPMP
5. Submit annual evaluation to the
INTER-AGENCY INVESTMENT PROMOTION President and Congress regarding the
COORDINATION COMMITTEE (IIPCC) activities in FIPMP
It is the body that will integrate the 6. Establish and regularly update online
promotion and facilitation efforts to encourage database
foreign investments. 7. Support local government efforts to
promote foreign direct investments,
DTI is the lead agency. compliance and address safeguards.
It consists of:

1. Secretary of the DTI – chairperson DEVELOPMENT OF FIPMP

2. Secretary/undersecretary of the DOF –
Vice President Shall be developed by IIPCC for the
3. 1 representative from: medium 5 year and long term 10-year plan
a. DTI-Board of Investment (BOI) Provided, it is based on competitive
b. DTI-PEZA advantages, natural resources, skill and
c. DFA, Office of Undersecretary for educational development, traditional linkages,
Multilateral Affairs and and international market potential and it is fully
International Economic Relations consistent with the strategic investment’s
(OUMAIER) priorities plan.
d. National Economic and
Development Authority (NEDA) Provided further, that online portal
e. DICT containing the FIPMP shall be uploaded which
consist details such as procedure, contract, Export enterprises which are non-
schedules. Philippine nationals shall register with BOI.

DEPED, CHED, TESDA, DOLE, PRC and BOI shall advice SEC or DTI if export
other training agencies involved in education enterprise fails to meet the export ratio
and skills development shall direct curriculum requirements.
and training efforts toward manpower
SEC or DTI shall thereupon order the
requirements of FIPMP.
non-complying export enterprise to reduce its
sales to not more than 40% of total production.

REGISTRATION OF INVESTMENTS OF NON- Failure to comply with such order

PHILIPPINE NATIONALS without justifiable reason, shall subject for
cancellation of registration.
General Rule: Without the need of prior
approval, non-Philippine national, upon They shall register and comply with the
registration with SEC or DTI (Sole export requirements in accordance with the NIR,
Proprietorship), may do business up to 100%. for purpose of availing any tax incentive or
benefit.
Exception: Unless participation of non-
Philippine nationals in the enterprise is
prohibited or limited to smaller percentage.
FOREIGN INVESTMENT NEGATIVE LIST
Provided, any enterprise seeking to avail
incentives under the Omnibus Investment Code
(1987) must apply for registration with BOI.

Provided, non-Philippine national Amendment shall not be made more

intending to engage in the same line of business often than once every 2 years.
as an existing joint venture, in which he or his
majority shareholder is a substantial partner, Provided that NEDA, in consultation and
must disclose the fact, names, and addresses of cooperation with BOI, DTI, SEC, DICT, IPAs and
the partners in the existing joint venture in his other government agencies shall, every 2 years:
application for registration with SEC. a. Review the list
SEC shall disallow registration of the b. Submit to Congress an analysis of foreign
non-Philippine national if the existing joint investment performance economic
venture, particularly Filipino partners, can activities and reasons for recommended
reasonably prove that they are capable to make amendments.
the investment needed for the domestic market
activities
REVIEW OF STRATEGIC INDUSTRIES

Upon the order of the President, the

FOREIGN INVESTMENTS IN EXPORT ENTERPRISE
IIPCC in coordination with National Security
They are allowed up to 100% ownership, Council (NSC) and NEDA, shall review the foreign
if the products do not fall within List A and B of investments involving military-related
the Foreign Investment Negative List. industries, cyber infrastructure, pipeline
transportation or such which may threaten FOREIGN INVESTMENT
territorial integrity and the safety of the Filipino
DEFINITIONS
citizens, when:
Philippine National
a. Made by a foreign government-
controlled entity or state-owned a. Citizen of the Philippines,
enterprise except independent pension b. Domestic partnership or association
funds, sovereign wealth funds, and wholly owned by citizens of the
multi-national banks Philippines.
b. Located in geographical areas critical to c. Corporation organized under the laws of
national security the Philippines of which at least 60% of
the capital stock outstanding and
ANTI-GRAFT PRACTICES IN FOREIGN
entitled to vote are held by citizens.
INVESTMENT PROMOTIONS
d. Trustee of funds for pension and other
Public officials and employees involved employee retirement or separation
in foreign investment promotions shall uphold benefits.
the highest standards of public service, Where trustee is a Philippine national
accountability and integrity. and at least 60% of the fund will accrue
to the benefit of the Philippine Nationals
Committing acts under Anti-Graft and
Corrupt practices shall be punished by: Provided, where a corporation and non-
Filipino stockholders own stocks in SEC
a. 2M to 5M
registered entities, the ff. shall be followed to be
b. In addition to penalties under the Sec 9
considered a Philippine National
of the said act
a. At least 60% of the capital stock and
NON-APPLICABILITY
entitled to vote must be owned by
This act shall not apply to banking and citizens
other financial institution governed and b. At least 60% of the member of the BOD
regulated by General Banking Law 2000 and of both corporations must be citizens
other laws under supervision of BSP.
Doing Business
It shall not apply to the practices of
Include:
profession that are covered by specific laws and
fall under the jurisdiction of various Professional a. soliciting orders,
Regulatory Board (PRBs) b. service contracts,
c. opening offices whether called liaison
offices or branches,
APPROPRIATIONS d. appointing representatives or
distributors:
50M from contingent fund of General d.1. domiciled in the Philippines or
Appropriations act shall be appropriated and d.2. stayed in the Philippines for a
released to IIPCC calendar year totaling 180 days or more
e. Participation in the management,
supervision or control
 Provided, the phrase doing business shall REQUIREMENTS TO BE INCLUDED IN LIST C
not be include mere investment as a shareholder
1. Controlled by at least 60% Filipinos
by a foreign entity in domestic corporations.
2. Industry capacity is ample to meet
Export enterprise - which produces goods for domestic demand
sale, or renders services to the domestic market 3. Sufficient competition exists within the
entirely or if exporting a portion of its output industry
fails to consistently export at least sixty percent 4. Industry products comply with
(60%) thereof; and Philippine standards
5. Quantitative restrictions are not applied
Foreign Investment Negative List – list of areas
on imports of directly competing
of economic activity whose foreign ownership is
products
limited to maximum 40$ ownership of the equity
6. Leading firms of the industry complies
capital
with environmental standards
NEGATIVE LIST 7. Prices of products are reasonable

List A COMPLIANCE WITH ENVIRONMENTAL

STANDARDS
Enumerate areas of activities reserved
to Philippine nationals All industrial enterprise regardless of
nationality of ownership
List B
CONSISTENT GOVERNMENT ACTION
Areas of activities and enterprises
pursuant to law: No agency, instrumentality or political
subdivision of the Government shall take any
a. Defense related activities, requiring action on conflict or which will nullify the
prior clearance and authorization from provision of this Act
Department of National Defense (DND)
to engage in such activity. ADMINISTRATIVE SANCTIONS
Unless such activity is specifically
Any person who violates this act – not
authorized with a substantial export
exceeding 100K
component to non-Philippine national
b. Which have implications on public Offense made by juridical entity – not
health and morals. exceeding ½ of 1% of total paid-in capital but not
more than 5M.
Small and medium enterprises with paid-in
equity capital < or equal of $500,000 are President and official responsible
reserved to Philippine nationals unless they therefor shall be fine not exceeding 300K
involved advanced technology.
In addition, any person, firm, juridical
List C entity involved shall be subject to forfeiture of all
benefits granted by this act.
Contain the areas of investment in which existing
enterprises already serve adequately the needs
of the economy and the consumer and do not
require further foreign investments