Question & AnswerQ&A (Republic Act No. 8179)
A Philippine national means a citizen of the Philippines; or a domestic partnership or association wholly owned by citizens of the Philippines; or a corporation organized under Philippine laws with at least 60% of its capital stock owned by citizens; or a corporation organized abroad registered under the Corporation Code with 100% stock owned by Filipinos or a trustee of funds for employee benefits with trustee Filipino and 60% of the fund benefiting Filipinos.
RA 8179 allows non-Philippine nationals to own up to 100% of domestic market enterprises unless such ownership is restricted by the Constitution, existing law, or the Foreign Investment Negative List.
The Foreign Investment Negative List consists of List A which enumerates areas reserved to Philippine nationals by the Constitution and laws, and List B which contains regulated areas requiring clearances such as defense-related activities and those affecting public health and morals.
Small and medium enterprises with paid-in capital less than US$200,000 are reserved to Philippine nationals. If they use advanced technology or employ at least 50 direct employees, non-Philippine nationals can invest with a minimum paid-in capital of US$100,000.
Amendments to List B may be made upon recommendation of the Secretaries of National Defense, Health, Education, Culture and Sports endorsed by NEDA, or motu proprio by NEDA, with the approval of the President and promulgated by a Presidential Proclamation. Amendments after the first regular list can only occur not more than once every two years.
Former natural-born Filipinos have the same investment rights as Philippine citizens in cooperatives, rural banks, thrift and private development banks, and financing companies, except in activities reserved by the Constitution or specifically restricted by certain laws.
They may acquire private land up to 5,000 square meters of urban land or 3 hectares of rural land for business or other purposes. Married couples may acquire land individually but total land must not exceed these limits. They can acquire up to two lots in different municipalities, but cannot own both urban and rural land.
The National Economic and Development Authority (NEDA), in consultation with the Board of Investments, Department of Trade and Industry, and Securities and Exchange Commission, shall prepare and disseminate materials about the Act and its amendments.
If any part or section of the Act is declared unconstitutional, the rest of the Act remains effective and is not affected by such declaration.
The Act took effect fifteen (15) days after its publication in two newspapers of general circulation in the Philippines.