Amendment on Persons in Authority under Penal Code

Multinational Company: Foreign company/group operating in two or more countries.
Regional or Area Headquarters (RHQ): Admin branch serving as supervision, communication, coordination center for affiliates in Asia-Pacific; does not earn income in the Philippines.
Regional Operating Headquarters (ROHQ): Foreign business entity allowed to derive income by performing qualifying services to affiliates in the Philippines and beyond.

Foreign business entities may establish RHQs in the Philippines subject to SEC license, recommended by the Board of Investments.
SEC to issue implementing rules within 30 days.
RHQ minimum requirements include:
- Certification from Philippine consulate or foreign equivalent confirming engagement in international trade.
- Certification from principal officer authorizing establishment, detailing activities limited to supervision/coordination, no income derived locally, no management or solicitation involvement, and obligation to notify closure.
- Annual remittance of not less than $50,000 or equivalent to cover operations, with submission of inward remittance certificates to SEC.
- Violation of rules or conditions can result in license cancellation.

Foreign entities organized outside the Philippines may establish ROHQs to service affiliates in Philippines and Asia-Pacific.
ROHQs allowed income generation via qualifying services.
Non-banking/financial ROHQs require SEC license; banking/financial also require BSP license.
Implementing rules by SEC and BSP within 30 days.
Minimum requirements:
- Certification of international trade engagement from Philippine consulate or foreign equivalent.
- Certification from principal officer authorizing ROHQ establishment with specified qualifying services including administration, finance, marketing, training, logistics, R&D, etc.
- Prohibition on providing services outside affiliates/branches/subsidiaries or soliciting goods/services.
- Obligation to notify closure 15 days before.
- Initial remittance of not less than $200,000 or equivalent with certificates submitted to SEC.
- Violation causes license cancellation.

Multiple entry Special Visa:
- Issued within 72 hours for foreign personnel of RHQ/ROHQ and family.
- Valid for three years, extendable, subject to salary and employment conditions.
- Exemptions from immigration and alien registration fees.
- Notification and tax clearance required upon departure.
Withholding Tax:
- 15% tax on gross compensation income for aliens and Filipinos in similar roles, with option for Filipinos to choose regular tax rates.
Tax and Duty-Free Importation:
- Alien executives entitled to tax/duty-free import of personal/household effects within prescribed period.
Travel Tax Exemption:
- RHQ/ROHQ personnel and dependents exempt from travel tax during assignment.

Corporate Income Tax:
- RHQs not earning Philippine income are exempt from income tax.
- ROHQs subject to 10% tax on taxable income; Philippine-source income subject to branch profit remittance tax.
VAT Treatment:
- RHQs exempt from VAT; sales/leases to RHQs subject to 0% VAT.
- ROHQs subject to 10% VAT.
Local Taxes:
- Exemption from local taxes, fees or charges except real property tax on land improvements/equipment.
Importation Privileges:
- Tax/duty-free import of training materials and equipment with BOI approval.
- Restrictions on sale or disposition of equipment within two years.
- Importation of new motor vehicles subject to taxes/duties.

Qualifications:
- Multinational companies engaged in international trade supplying spare parts, components, semi-finished/raw materials may establish regional warehouses.
- Must also have or establish RHQ/ROHQ.
- Licensing by PEZA for those in ecozones; others by Board of Investments.
Activities Limited to:
- Supply depot functions like storage, packing, labeling, kit assembly for Asia-Pacific and foreign markets.
- No direct trade, solicitation, sales in the Philippines except authorized distribution with paid taxes/duties.
Personnel and Operational Control:
- Personnel not managing local subsidiaries/affiliates beyond allowed activities.
- RHQ/ROHQ personnel responsible for warehouse operation.
Submission of licenses and fees to relevant authorities.
Applications require detailed premise and operational descriptions.
Supervision by Board of Investments, PEZA, or concerned ecozone authorities, Bureau of Customs involvement.

Imported qualified goods for reexport exempt from customs duties, taxes, and local taxes.
Goods withdrawn for local market subject to income tax, customs duties, and VAT; improper use results in forfeiture and penalties.

Warehoused goods may stay for two years, extendable by one year with fees and approval.
Unexported goods beyond allowed period subject to forfeiture.

Joint rules by BOI, PEZA, ecozone authorities, and Bureau of Customs on all operational aspects.
Consultation with warehouse operators for rule formulation.

License cancellation for willful violations of the Act or implementing guidelines.
BOI, PEZA, or ecozone authorities may impose fines for non-compliance with reporting.

Article 73 repealed.
New Article 73 mandates coordinated issuance of implementing rules and regulations by various government agencies, effective 30 days after publication.