Question & AnswerQ&A (Republic Act No. 11647)
The State aims to attract, promote, and welcome productive foreign investments that contribute to sustainable, inclusive, resilient, and innovative economic growth, employment creation, technological advancement, and countrywide development, consistent with constitutional and legal restrictions and national security.
Foreign investment means an equity investment made by non-Philippine nationals in the form of foreign exchange and/or other assets actually transferred to the Philippines and duly registered with the Bangko Sentral ng Pilipinas.
The IIPCC coordinates all promotion and facilitation efforts to encourage foreign investments in the country, integrating efforts of various government agencies and serving as a strategic body for investment promotion.
The Secretary of the Department of Trade and Industry (DTI) serves as the Chairperson, and the DTI acts as the lead agency of the IIPCC.
Yes, a non-Philippine national may invest up to 100% in a domestic enterprise unless existing laws or this Act's provisions prohibit or limit foreign participation.
Foreign investments in export enterprises not covered by the Foreign Investment Negative List are allowed up to 100% ownership; however, export enterprises must meet export requirements, or else they risk registration cancellation or penalties.
It is a list of industries and investment areas reserved to Philippine nationals where foreign ownership is either restricted or prohibited, including defense-related activities and micro and small domestic market enterprises below a certain paid-in capital.
Amendments to the Foreign Investment Negative List shall not be made more often than once every two years.
Public officials who commit acts under the Anti-Graft and Corrupt Practices Act in relation to foreign investment promotions shall face fines ranging from Two million pesos to Five million pesos, in addition to other penalties under the law.
No, this Act does not apply to banking and other financial institutions governed by the General Banking Law of 2000 and other laws under Bangko Sentral ng Pilipinas supervision.
They will be ordered to reduce domestic sales to no more than forty percent of total production, and failure to comply may result in cancellation of SEC or DTI registration and penalties.
The IIPCC develops medium-to-long term FIPMP, designs marketing strategies, supports trade missions, encourages R&D, monitors performance, submits reports to the President and Congress, and maintains an online investment database.
The Board of Investments (BOI) serves as the secretariat of the IIPCC, implementing its policies and resolutions.
They must disclose the fact and the names and addresses of partners in the existing joint venture during registration with the SEC.
Nothing in the Act should cause termination of employees hired before its effectivity, and existing labor laws including the Labor Code prevail.