Amendment to Foreign Investments Act

"Investment": Equity participation in Philippine-organized or existing enterprises, recorded in ownership registries.
"Foreign Investment": Equity investment by non-Philippine nationals involving foreign exchange/assets transferred to the Philippines and registered with Bangko Sentral ng Pilipinas.
"Practice of Profession": Activities by duly licensed professionals or holders of special temporary permits as defined by professional regulatory laws.
"Pipeline Transaction": Transport of goods/materials like crude oil, natural gas, biofuels, through pipelines.

Created to integrate promotion and facilitation efforts to encourage foreign investments.
Led by the Department of Trade and Industry (DTI).
Composition includes key secretaries and representatives from finance, foreign affairs, economic planning, ICT, education, skills development, and industry experts from four major geographic areas.
Ability to invite other government, local government units, NGOs, and business chambers as needed.
Coordinates with various economic zone authorities (e.g., PEZA, SBMA) for investment promotion, excluding fiscal incentive administration.
Board of Investments (BOI) serves as secretariat implementing IIPCC policies.

Establish medium and long-term Foreign Investment Promotion and Marketing Plan (FIPMP).
Design comprehensive marketing strategies promoting the Philippines as an investment destination.
Support inbound/outbound foreign direct and trade missions exploring new markets.
Encourage research and development in priority sectors.
Monitor measurable targets including job generation.
Submit annual evaluations and reports to the President and Congress.
Maintain an online database of potential local partners for business matching.
Support local government efforts to expedite investment compliance and address investor concerns.

IIPCC to develop strategic medium (5-year) and long-term (10-year) plans based on competitive advantages, resources, skill development, and market potential.
Must align with the strategic investment priorities of the National Internal Revenue Code.
An online portal shall provide details on procedures, contacts, schedules.
Database to include local enterprises for partnerships with foreign investors; coordination with local chambers and business groups.
Education and skills agencies (DepEd, CHED, TESDA, DOLE, PRC) to align curricula/training with manpower requirements.
DTI tasked to issue necessary implementing rules and regulations.

Non-Philippine nationals may register to do business up to 100% ownership unless restricted by law.
Registration with Securities and Exchange Commission (SEC) or DTI for single proprietorships.
No additional foreign ownership limitations imposed beyond the law.
Enterprises seeking incentives under the Omnibus Investment Code must register with BOI.
Disclosure required if engaging in the same business as an existing joint venture involving the non-Philippine national.
SEC must reject applications during the transitory period if domestic market activities conflict with existing joint ventures.
SEC to complete registration within 15 days upon submission of complete documents.

Allowed up to 100% foreign ownership for export enterprises not covered by the negative list.
Export enterprises must register with BOI and comply with export requirements.
BOI to notify SEC/DTI if export ratio requirements are not met; SEC/DTI to mandate adjustment of domestic sales to 40% or less.
Non-compliance without justification may result in cancellation of registration and penalties.
Export firms availing tax incentives must comply with National Internal Revenue Code provisions.

Certain sectors reserved for Philippine nationals, including defense-related activities requiring Department of National Defense clearance.
Micro and small domestic market enterprises with paid-in capital under US$200,000, with exceptions for advanced technology startups or those with Filipino majority employees.
Minimum capital thresholds set for foreign participation in such small enterprises.
Registered foreign enterprises employing foreign nationals with fiscal incentives must implement skills transfer programs monitored by DOLE.
Provisions do not allow termination of employees hired before the Act's effectivity; labor laws prevail.
Amendments to the negative list require recommendations from the Defense or Health Secretaries, approval by the President, and issuance through executive orders.
Amendments to the list limited to once every two years, with biennial reviews and reports to Congress by NEDA.

President may order a review of foreign investments in military-related industries, cyber infrastructure, pipeline transportation, or other critical activities.
Reviews triggered for investments by foreign government-controlled entities or state-owned enterprises, and those in critical geographical areas.
Recommendations to restrict such investments submitted to the Office of the President.

Public officials/employees in foreign investment promotions must adhere to highest standards of accountability and integrity.
Violations akin to RA 3019 (Anti-Graft and Corrupt Practices Act) subject offenders to fines ranging from P2,000,000 to P5,000,000 in addition to existing penalties.

Act does not cover banking and financial institutions regulated by the General Banking Law.
Does not apply to practice of professions covered by specific regulatory laws or reciprocity agreements.
Occupations or professions not covered by special laws or agreements are subject to the Act, provided proper licenses and permits are secured.

P50 million allocated from the contingent fund for initial implementation.
Further funding included in future General Appropriations Acts.
NEDA, in coordination with DTI and DOF, to amend rules and regulations for implementation.

R.A. No. 7042, as amended, modified accordingly; inconsistent laws repealed or adjusted.
If any provision declared unconstitutional, remaining provisions continue in force.
Act takes effect 15 days after publication in Official Gazette or general circulation newspaper.