Grace period to register foreign investment lapses on March 7

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) said the one-year grace period for the registration of foreign investments is set to expire on March 7.

The Bangko Sentral ng Pilipinas (BSP) said the one-year grace period for the registration of foreign investments is set to expire on March 7.

Foreign investors wanting to invest in the Philippines are required to register with the regulator so they could repatriate their earnings either in terms of dividends, royalties and income, eventually need to buy dollars from the market in the future.

The BSP issued a circular in February last year providing a one-year grace period during which unregistered foreign investments may be applied for registration with the BSP, regardless of date of funding, without processing fee.

“Concerned parties are, therefore, advised 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 central bank said.

The BSP continues to facilitate the use of foreign-exchange resources of the banking system for legitimate purposes, including outward remittance in the foreign exchange equivalent of peso divestment proceeds from, and income on, registered foreign direct investments (FDI).

In 2013 the Monetary Board approved the adoption of a one-year prescriptive period within which applications for FDI registration must be filed with the BSP.

The prescriptive period allows the timely capture by the BSP of more current information on foreign investments flowing into the economy, for better analysis of developments and trends in capital flows and formulation of policies and strategies.

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