THE FIRM ATTORNEY PROFILES PRACTICE AREAS CLIENT EXTRANET LOGIN
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Primary Contact

316 Mile Long Building

Amorsolo Street

Legaspi Village

Makati City

1200 Philippines

Telephone: (632) 8941441

TeleFax: (632) 8124296

e-mail: gtalaw@gtalawphil.com

 

Office Hours

9:30AM to 5:30PM PH Time

Monday - Friday

 

www.gtalawphil.com

 

 
     
     

Remittances

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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registered with the Central Bank, it may be immediately repatriated in the foreign currency in which the investment was originally made at the exchange rate prevailing at the time of repatriation.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

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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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Guzman Taņedo & Acain Law Offices
316 Mile Long Building, Amorsolo Street, Makati City, Philippines - Telephone: 894.14.41; Telefax: 812.42.96

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