Tax Updates March 2022 (SyCipLaw Tax Issues And Practical Solutions (T.I.P.S.)

1. Attracting More Foreign Businesses in the Philippines

On March 2, 2022, the President signed into law Republic Act (R.A.)  No. 11647 which amends the three-decade old Foreign Investments Act of 1991 (FIA). R.A. No. 11647 aims to attract, promote, and welcome productive foreign investments in activities where foreign investment is allowed under the Philippine Constitution and relevant laws. This law encourages foreign investors to invest in the Philippines and is geared towards making it more competitive with neighboring countries in the ASEAN region. 

The amendments under R.A. No. 11647 primarily seek to open the Philippines by lessening barriers for the entry of foreign investments to drive the country's economic growth and to help the Philippines recover from the adverse effects of the COVID-19 pandemic. Thus, R.A. No. 11647 allows foreign investors to invest in up to 100% of a domestic enterprise unless participation of foreigners is prohibited or limited as