The Bangko Sentral ng Pilipinas (BSP) is reminding the public that under Circular No. 918 dated 2 August 2016, the BSP has granted a final one (1) year grace period (from 1 September 2016 up to 1 September 2017) within which applications for registration of foreign direct investments (FDIs) may be filed with the BSP [through the International Operations Department (IOD)]. The grace period covers investments already existing/recorded in the investee firm’s books, regardless of the date when inward remittance of foreign exchange (FX)/actual transfer of assets to the Philippines was made, provided all relevant registration requirements under the Manual of Regulations on Foreign Exchange Transactions (FX Manual), as amended, have been complied with. After said period, the general policy providing for a
one (1) year prescriptive period shall apply. This means that all applications for FDI registration must be filed not later than one (1) year from date of actual inward remittance of FX/transfer of assets to the Philippines which funded the investment.
Concerned parties are, therefore, enjoined to file their requests for registration soonest to avoid crowding of applications towards the end of the grace period. Applications will be processed on a first-come, first-served basis, provided all requirements are complied with. The checklist of requirements may be found in Appendix 10 of the FX Manual, as amended; and may also be downloaded from the BSP website at http://www.bsp.gov.ph/downloads/Regulations/MORFXT/MORFXT.pdf.
Finally, the BSP wishes to clarify that registration of foreign investments is optional, as this is required only if the foreign exchange for repatriation of capital and remittance of earnings will be sourced from authorized agent banks or their affiliate foreign exchange corporations.