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Remittance of earnings&
repatriation of capital
Foreign investments duly registered with the Bangko Sentral ng
Pilipinas (BSP) shall be entitled to full and immediate capital
repatriation and dividends and profit remittance privileges without
prior BSP approval. Authorized Agent Banks (AABs) are authorized to
sell and to remit the equivalent foreign exchange at the exchange
rate prevailing at the time of actual remittance (representing
sales/divestment proceeds or dividends/profit of duly registered
foreign investment) upon presentation of the Bangko Sentral
Registration Document.
In the case of unregistered foreign investments, profit remittance
and capital repatriation shall be serviced using foreign exchange
sourced from outside the domestic banking system.
Provided that the investment has been properly registered with the
Central Bank, it may be immediately repatriated in the foreign
currency in which the investment was originally made at the exchange
rate prevailing at the time of repatriation. This usually happens if
the investor finds that it is no longer feasible to complete the
project after his capital has been brought to the Philippines.
Rules on registration of foreign investments
Direct foreign equity investments registered with the Securities and
Exchange Commission (SEC) or the BTRCP shall be deemed registered
with the BSP upon the recommendation of either agency concerned.
Direct foreign equity investments not required by law to be
registered with SEC or BTRCP shall be registered with the BSP which
shall issue a Direct Investment Registration Document (DIRD).
Application for registration of foreign investment in certificates
of indebtedness issued by the Philippine government or in securities
listed in the Philippine Stock Exchange (including new/additional
issues, stock rights/dividends/splits and the like) shall be filed
by an authorized securities dealer/broker (ASD/B) or underwriter
with the BSP or with the custodian bank designated by the foreign
investor.
Conditions for registration with Bangko Sentral ng Pilipinas
Registration shall be granted to foreign investments under the
following conditions:
1. It has been authorized to enter the Philippines under existing
laws; and
2. It has been actually transferred to the Philippines in the form
of:
a. Cash - foreign exchange fully certified by an AAB to have been
inwardly remitted and converted into Pesos for the account of the investee; and
b. In kind - other eligible assets consisting of:
- machinery and equipment; and
- raw materials, supplies, spare parts and other
items necessary for
the operation of investee
firm. The value of such eligible assets
shall be
assessed and appraised by the BSP.
Rules on Foreign Exchange Regulations
Section 2 of the CB Circular 1353, series of 1992 (Further
Liberalizing Foreign Exchange Regulations) provides that as a
general rule, foreign exchange maybe free sold and purchased outside
the banking system. Foreign exchange receipts, acquisitions or
earnings may also be deposited in foreign currency accounts, whether
in the Philippines or abroad, or brought out of the Philippines.
However, in order that foreign loans and foreign investments can be
serviced with foreign exchange purchased from the banking system,
the proceeds of such foreign loans and foreign investments shall
continue to be sold to AABs for pesos.
Registration of foreign investments, repatriation of capital and
remittance of profits/dividends
BANGKO SENTRAL NG PILIPINAS
Vito Cruz corner Mabini Street Ermita, Manila
Tel. Nos. (632) 525-1303 / 523-7731 / 523-5888
Contact Us
______________________________________________
You're invited to call us to discuss
your company's legal matters. We shall be glad to talk with you over
the telephone, or in our office or yours, whichever is easiest for
you. You can also e-mail us at
gtalaw@gtalawphil.com and we shall get back to you
immediately.
GUZMAN TAŅEDO & ACAIN
Mile Long Building 316
Legaspi Village
Amorsolo Street
Makati City
Telephone: 8941441
TeleFax: 8124296
e-mail:
gtalaw@gtalawphil.com
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