Foreign Investments Act Amendments

"Investment" means equity participation in Philippine enterprises duly recorded.
"Foreign investment" means equity investments by non-Philippine nationals via assets or foreign exchange transferred to the Philippines and registered with Bangko Sentral ng Pilipinas.
"Practice of profession" refers to lawful activities by registered, licensed professionals or holders of special permits.
"Pipeline transaction" involves transport by pipelines of crude oil, petroleum, natural gas, biofuels, and chemically stable substances.

Established to integrate foreign investment promotion and facilitation efforts.
Led by the Department of Trade and Industry (DTI) Secretary as Chairperson.
Composed of officials from DTI, Department of Finance, BOI, PEZA, Department of Foreign Affairs, NEDA, DICT, CHED, TESDA, and four regional representatives nominated by industry/business chambers.
Can include other government agencies, LGUs, NGOs, and business entities as needed.
Partners with numerous economic zone authorities but excludes administration and grant of fiscal incentives.
The Board of Investments (BOI) serves as the secretariat implementing IIPCC policies.

Develop medium- and long-term Foreign Investment Promotion and Marketing Plan (FIPMP).
Design comprehensive marketing strategies and campaigns to promote the Philippines as an investment destination.
Support foreign direct investments and trade missions to explore new markets.
Encourage research and development in priority areas.
Monitor performance versus targets, including job creation.
Submit annual reports to the President and Congress.
Maintain an updated online database of local partners for business matching.
Support local governments in promoting and facilitating foreign investments.

The FIPMP covers a five-year medium-term and ten-year long-term plan.
It is based on competitive advantages, natural resources, skills and education, traditional linkages, and international market potential.
Consistency with the strategic investment priorities under the National Internal Revenue Code.
An online portal hosts the FIPMP including procedures, contacts, and schedules.
Database includes local enterprises willing to partner with foreign investors.
Local industries, education agencies, and labor organizations align curricula and training to meet FIPMP manpower needs.
DTI is tasked with promulgating rules to implement this provision.

Non-Philippine nationals can invest up to 100% equity in domestic enterprises unless restricted by law.
No additional restrictions may be imposed by SEC or DTI beyond the law.
Investments seeking incentives under the Omnibus Investment Code require BOI registration.
Disclosure of existing joint ventures in the same business is mandatory.
SEC denies registration if joint ventures demonstrate reasonable domestic market engagement during a transitional period.
SEC must process registration within 15 days upon requirements submission.

Foreign investment allowed up to 100% ownership in export enterprises not covered by Negative Lists A and B.
Export enterprises must register with BOI and comply with export requirements.
BOI reports non-compliance to SEC or DTI, which can limit domestic sales to 40% of production.
Failure to comply may result in registration cancellation or penalties.
Export enterprises must comply with tax incentive requirements per National Internal Revenue Code.

Certain defense-related activities require DND clearance and authorization, including manufacturing and repair of firearms, weapons, explosives.
Small domestic market enterprises with equity below USD 200,000 are reserved for Filipinos, except for startups endorsed under the Innovative Startup Act or involving advanced technology.
Non-Philippine nationals may invest with a minimum paid-in capital of USD 100,000 under certain conditions.
Foreign enterprises enjoying fiscal incentives must implement understudy or skills development programs to transfer skills to Filipinos, monitored by DOLE.
Existing employment protections under the Labor Code remain in force.
Amendments to Negative List B require recommendations from DND, Secretary of Health, or NEDA and Presidential approval via Executive Order.
The Negative List is reviewed every two years by NEDA with input from relevant agencies and periodic reporting to Congress.

IIPCC, National Security Council, and NEDA shall review foreign investments in sensitive sectors such as military-related industries, cyber infrastructure, and pipeline transportation upon presidential order.
Reviews targeted at investments by foreign government-controlled or state-owned entities and in areas critical to national security.
Recommendations to suspend or prohibit investments are forwarded to the Office of the President.

Public officials involved in foreign investment promotions must uphold integrity and accountability.
Violations of anti-graft laws incur additional fines ranging from PHP 2 million to PHP 5 million beyond penalties under the Anti-Graft and Corrupt Practices Act.

This Act does not apply to banking and financial institutions governed by the General Banking Law and supervised by Bangko Sentral ng Pilipinas.
It does not cover the practice of professions regulated by specific professional laws or under reciprocity agreements.
Occupations not covered by special laws or reciprocity agreements are subject to this Act if licenses and permits are secured.

PHP 50 million appropriated from the Contingent Fund to fund the IIPCC for initial implementation.
Future funds for this Act will be included in the General Appropriations Act.
NEDA, DTI, and DOF tasked to amend Rules and Regulations for effective implementation.

Previous laws inconsistent with this Act are repealed or modified accordingly.
Declaration of any provision's unconstitutionality does not affect the remaining provisions.
The Act takes effect 15 days after publication in the Official Gazette or a newspaper of general circulation in the Philippines.