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RULES ON FOREIGN INVESTMENTS
- Inward Investments
- Only foreign investments registered with BSP are entitled to capital
repatriation or dividend/profit remittances using foreign exchange
sourced/purchased from the local banking system.
- For portfolio investments (such as in PSE-listed or government
securities), BSP registration may be made thru a local custodian
bank (an AAB or an OBU).
- A Bangko Sentral Registration Document (BSRD) is issued for each
investment registered but only one BSRD shall be issued by a local
custodian bank per investor.
- Capital repatriation and dividend/profit remittances on BSP-registered
investments to be paid in foreign exchange purchased from the Philippine
banking system are allowed without prior BSP approval upon presentation
of BSRD and proof of sale/dividend declaration.
- Supporting documents required for BSP registration.
- For cash investments, AAB certification/credit advice of inward
remittance and conversion to pesos and investee's certification
of receipt of the investment (or broker's invoice, in case of
PSE-listed securities) shall be submitted to BSP.
- For investments in kind, proof of transfer of asset to the
Philippines/shipping documents, SGS-CRF/appraisal by BSP, and
investee-firm's certification of receipt of the investment,
shall be submitted to BSP.
- SEC or Bureau of Trade Regulations and Consumer Protection
(BTCRP)-endorsed investments need not submit any supporting
documents to BSP.
- Outward Foreign Investments by Residents
- Only outward investments exceeding US$6 million per investor per
year sourced from the local banking system are required to be approved
and registered by BSP.
- Applications to purchase foreign exchange from the local banking
system for this purpose shall submit as supporting documents:
- copy of the applicant's income tax return;
- project feasibility study, investment proposal/subscription
agreement and other documents showing the nature and place of
the investment; and
- written undertaking to inwardly remit and sell for pesos to
AABs the dividends/earnings/divestment proceeds from the investments.
- Investments funded by withdrawals from FCDU accounts of residents
or sourced outside the local banking system need not be approved/registered
by BSP.
- Foreign exchange received as dividends/divestment proceeds from
outward investments funded by foreign exchange purchased from AABs
shall be inwradly remitted within 15 banking days from receipt and
sold for pesos to AABs within 3 banking days from receipt in the
Philippines.
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