BSP reiterates Sept 1 deadline for unregistered FDIs

MANILA, Philippines -  The Bangko Sentral ng Pilipinas (BSP) said the public has less than a month to register unregistered foreign direct investments (FDI) as the one-year grace period is set to lapse on Sept.1.

In an advisory, the BSP said the public could file applications for registration of FDI with the central bank through the International Operations Department (IOD).

“Those with existing unregistered investments are, therefore, enjoined to file their requests early to avoid crowding of applications toward the end of the grace period,” the BSP said.

It added applications would be processed on a first-come, first-served basis.

The grace period covers investments already existing or recorded in the investee firm’s books, regardless of the date when inward remittance of foreign exchange or actual transfer of assets to the Philippines was made.

“After said period, the general policy providing for a one year prescriptive period shall apply. This means that all applications for FDI registration must be filed not later than one year from date of actual inward remittance of foreign exchange or transfer of assets to the Philippines,” the BSP said.

The BSP said the registration of foreign investments is optional, as this is required only if the foreign exchange for repatriation of capital and remittance of earnings would be sourced from authorized agent banks or their affiliate foreign exchange corporations.

In 2013, the BSP approved the adoption of a one-year prescriptive period within which applications for FDI registration must be filed with the BSP to allow the timely capture by the central bank of more current information on foreign investments flowing into the economy.

A two-year transition period was also provided to allow registration of old but unregistered FDIs already recognized in the books of the investee firm, regardless of when the funding for the investments came in. The period ended in April 2015.

In response to numerous applications for registration that were received and to further widen the coverage of BSP’s database on FDIs, the BSP approved an additional one-year grace period for filing such requests.

The Philippines recorded a record $7.9 billion net FDI inflow last year, exceeding the full-year target of $6.7 billion. 

The BSP has raised the projected FDI inflows for this year to $8 billion from the original target of $7 billion.

Latest data showed FDI inflows dropped 32 percent to $2.43 billion in the first four months from $3.58 billion in the same period last year.