Question & AnswerQ&A (Republic Act No. 8179)
A Philippine national means a citizen of the Philippines; a domestic partnership or association wholly owned by Filipino citizens; a corporation organized under Philippine laws with at least 60% capital stock owned by Filipinos; a corporation organized abroad registered in the Philippines with 100% stock owned by Filipinos; or a trustee of employee funds where the trustee is a Philippine national and at least 60% of the fund benefits Philippine nationals.
Non-Philippine nationals may own up to 100% of domestic market enterprises unless such ownership is prohibited or limited by the Constitution, existing laws, or the Foreign Investment Negative List.
The Foreign Investment Negative List has two components: List A which enumerates areas reserved to Philippine nationals by the Constitution and laws, and List B which contains regulated areas such as defense-related activities, public health and morals, and other areas requiring specific clearances or restrictions.
Foreign investments in defense-related activities require prior clearance and authorization from the Department of National Defense and include activities like manufacturing, repairing, storage, and distribution of firearms, ammunition, explosives, and similar materials, unless specifically authorized with a substantial export component.
A minimum paid-in capital of One Hundred Thousand US Dollars (US$100,000) is allowed for non-Philippine nationals investing in such enterprises.
Former natural-born Filipinos have the same investment rights as Philippine citizens in Cooperatives, Rural Banks, Thrift Banks, Private Development Banks, and Financing Companies, except in activities reserved by the Constitution and specified 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, with limitations on the number of lots and total area, including restrictions for married couples.
The Act shall take effect fifteen (15) days after its publication in two newspapers of general circulation in the Philippines.
The National Economic and Development Authority (NEDA), in consultation with the Board of Investments, Department of Trade and Industry, and Securities and Exchange Commission, is responsible for preparing and disseminating the materials.
No, after the promulgation and publication of the first Regular Foreign Investment Negative List, amendments to List B shall not be made more often than once every two years.