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​​​Guide to​ FX Transactions - Foreign Invest​ments

Inward Investments: Registration


​​​Prescriptive Period for Investments to be Registered with BSP​1


For inward investments to be registered with BSP under Section 36.1, applications for registration shall be filed within the one (1) year prescriptive period, to be reckoned as follows:

​

​Funding

Reckoning Date

(As applicable)

  1. In cash

  1. Inward remittance of foreign exchange (FX)​

  • Date of: (i) actual funding of (e.g., inward remittance of FX); or (ii) payment for, the investment; or

  • Date of: (i) effectivity of Deed of Transfer/Assignment/Sale; or (ii) exercise of rights; or (iii) other covering agreement/ equivalent document relative to the investment​

  • Date of: (i) actual divestment/sales proceeds; or (ii) effectivity of covering dividend declaration/ equivalent document (e.g., dividend declaration); or (iii) payment for the investment

 


  1. Constructive remittance of FX funding to a resident’s deposit account


(i.e., FX funding is credited to offshore account of resident investee/intended beneficiary/ onshore bank without actual inward remittance of FX but the investment is accordingly booked onshore in the records of the investee firm)

           

  1. FX payments made offshore between non-residents for transfer of onshore investments

  1. Peso balance of non-resident  investor’s onshore peso deposit account and interim peso depo​sit account

  1. Reinvestment of peso divestment/sales proceeds or related earnings of investment​

  1. Conversion of liability (e.g., foreign loan/ bonds/notes/ obligation) to investment (e.g., equity)​

  1. Exercise of conversion rights to underlying shares [e.g., under Philippine Depository Receipts (PDRs)]​

  1. In kind

  1. Heavy Equipment and Machinery/ Inventories/Raw Materials/ Supplies/ Spare Parts/ Furniture/ Personal Properties/Motor Vehicle/Sea Vessel/ Aircraft including other tangible assets from abroad​

Date of: (i) actual transfer of assets to the Philippines (e.g., date of Bureau of Customs Import Entry Declaration);​ or (ii) payment for investment

  1. Intangible assets [e.g., intellectual p​roperty rights (IPR)]

Date of: (i) effectivity of Deed of Transfer/ Assignment/Sale; or (ii) other covering agreement/equivalent document relative to the investment

  1. Stock and/or property dividen​​ds accruing from onshore investments

Date of: (i) dividend declaration; or (ii) effectivity of equivalent document ​(e.g., Board/ Stockholders’ Resolution)

  1. Shares (e.g., share s​​wap)

Date of: (i) effectivity​ of Deed of Transfer/ Assignment/Sales; or (ii) other covering agreement/equivalent document relative to the investment

  1. Others not falling under Items A and B​

Date of: (i) actual funding; or (ii) transfer of assets to the Philippines; or (iii) payment for the investment (either in cash or in kind)

In case the investment requires regulatory/board/other government agency clearance/ approval/action, the reckoning date shall be based on the date of such clearance/ approval/action.
 
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1  Inward investments need not be registered unless the repatriation of capital and/or the remittance of related earnings shall be funded with FX resources of AABs/AAB forex corps.


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Created:6/17/2020 3:06 PM   by:  Pambid Frederick D.
Modified:7/15/2020 5:32 PM   by:  Pambid Frederick D.