NEDA IRR of RA 7042 as amended by RA 8179

Covers all investment areas except banking and financial institutions regulated by other laws and the Central Bank.

Act limits only foreign equity participation; all other investment regulations remain effective.
SEC or BTRCP monitor compliance with foreign equity requirements.

Foreign nationals may invest up to 100% provided areas are outside the FINL or meet export and reciprocity requirements.
Multiple area investments involving FINL areas limit foreign participation to areas outside FINL.
Pre-existing enterprises increasing foreign equity must comply with Act provisions.
Applications filed with SEC or BTRCP depending on entity type; documentary pre-processing and clearance from defense or science agencies for certain activities required.
SEC/BTRCP must act within 15 working days or the application is deemed approved.
Specific documentary and procedural requirements outlined for new and existing corporations, foreign corporations, and sole proprietorships.
Special provisions for former natural born Filipinos’ investment rights and documents necessary.
Application fees collected; Certificate of Registration issued upon approval.

Automatic registration with CB after SEC or BTRCP issuance for foreign exchange remittances; CB rules apply.

Up to 100% foreign equity allowed if products/services are not listed in FINL Lists A and B.
Export enterprises deemed registered with BOI upon SEC or BTRCP registration; incentives under EO 226 require separate BOI registration.
Export enterprises must submit annual reports within six months after the taxable year.
BOI monitors export compliance and reports failures to SEC/BTRCP who can order corrective action, with penalties for non-compliance.

Foreign equity allowed up to 100% unless restricted by law or FINL.
Enterprises may change status to export enterprise upon notification and compliance with export requirements.

Comprised of Lists A and B of economic activities reserved or limited by law for Philippine nationals.
NEDA responsible for formulation, submission to the President for approval, publication, and effectivity.
First Regular FINL effective at transitory period end; subsequent lists effective 15 days after publication.
Only new foreign investments are affected.

List A: Activities reserved to Filipinos with up to 40% foreign participation.
List B: Includes defense-related, activities affecting public health/morals, and small/medium enterprises below certain capital thresholds.
Amendments subject to recommendations and Presidential approval.

Granted parity with Filipino citizens in cooperatives, rural banks, financing companies, and selected activities including defense-related upon specific authorization.

May acquire urban land (max 5,000 sqm) or rural land (max 3 hectares) for business use.
Restrictions on aggregate land ownership and use detailed.
Registration by the appropriate Register of Deeds requires proof of business use; compliance with existing land laws.

Thirty-six month transitory period with a specific negative list (Lists A, B, and C).
List C involves import/wholesale, certain regulated services, and existing licensing agreements.
NEDA formulates transitory FINL; published prior to IRR effectivity.

May continue operations under prior certificates subject to terms.
Option to shift to Act governance, surrendering previous incentives and complying with refund rules.

Prohibits conflicting actions by government agencies against Act provisions or related certificates.

All industrial enterprises must comply with DENR rules and environmental standards.
DENR to provide SEC lists of critical activities; clearances may be obtained post-registration.

Detailed fines and penalties for late, non-submission, fraudulent reports; failure to meet export ratios.
Sanctions extend to responsible corporate officers.
DENR sanctions for environmental non-compliance.
SEC/BTRCP have rules for hearings on violations.
Additional grounds for registration cancellation include nondisclosure in joint ventures and fraudulent acts.
Other violations penalized under RA 7042 Section 14.

Amended rules effective 15 days after publication in a newspaper of general circulation in the Philippines.