MANILA – President Rodrigo Duterte has signed the law to promote “productive investments” from foreigners and other countries that would help boost the country’s economic growth, according to documents released Friday.
Republic Act No. 11647, which amends RA 7042 or the Foreign Investment Act of 1991, improves technology transfer, increases foreign exchange from exports, and results in increased tax revenue.
The amendment also establishes the Inter-Agency Investment Promotion Coordinating Committee (IIPCC) headed by the Department of Commerce and Industry.
The law, approved on Wednesday, states that the body will encourage and facilitate efforts to encourage foreign investment.
The IIPCC was also tasked with creating a strategy or campaign that would “make the promotion of the country a desirable area for investment”.
Foreigners, “without the need for prior authorization”, can now invest in a national company up to 100% of its capital “unless the participation of non-Filipino nationals … is prohibited or limited to a percentage inferior” by the laws in force, he added. read.
Foreigners can also own small and medium enterprises with a minimum registered capital of less than $100,000 if the majority of their direct employees are Filipinos. The number of Filipino employees should also not be less than 15.
“The Securities and Exchange Commission (SEC) or DTI…shall not impose any limitations on the extent of foreign ownership in a business beyond those provided by this Act,” the law says.
The law also noted that a foreigner who will also be involved in an existing joint venture, where he or his controlling shareholder is a significant partner, must disclose the names and addresses of the partners when registering with the SEC.
Foreign investment in exporting companies is also now allowed up to 100%, according to the amendment.
However, export companies must register and comply with the National Tax Code in order to receive tax benefits or incentives.
Duterte, in his final State of the Nation address, called on lawmakers to pass three priority bills aimed at attracting more foreign investment to the country.
These were the Foreign Investment Law, the Civil Service Law and the Retail Trade and Liberalization Law.