PERTINENT AMENDMENTS TO THE FOREIGN INVESTMENTS ACT (FIA)

UNDER RA 11647
I. The definition of “investment” now requires that the equity participation must be duly recorded in the
enterprise’s stock and transfer book (STB) or any equivalent registry of ownership

II. A new Inter-agency Investment Promotion Coordination Committee (IIPCC) is created, and which
shall:

A. integrate all promotion and facilitation efforts to encourage foreign investment

B. have powers that include:

a. establishment of medium (5 years) and long-term (10 years) investment plans;

b. design comprehensive marketing strategy and campaign;
c. support inbound and outbound foreign direct and trade missions;
d. encourage and support research and development;
e. monitor actual performance against measurable and timebound targets;
f. submit annual evaluation and reports to the President and Congress;
g. establish and update online database of ready local partners from priority sectors to
promote investments and business matching in local supply chains; and,
h. support local government efforts to promote foreign direct investmets.

III. Reservation of micro and small domestic market enterprises to Filipinos is, in general, retained at
USD200,000.00 paid in equity. However, a foreign business may participate in domestic market
enterprise with USD100,000.00 capitalization in the following circumstances:

A. the business involves advanced technology as determined by the DOST;

B. the business is endorsed as a startup or startup enabler by lead host agencies pursuant to RA
11337, or the Innovative Startup Act, which defines the following:

a. Host agencies - the Department of Science and Technology (DOST), Department of

Trade and Industry (DTI), Department of Information and Communications Technology
(DICT). or other national government agency, local government unit, or public academic
institution that provides programs, benefits and incentives to startups or startup
enablers as defined in this Act subject to an application or selection process;
b. Startup – any person or entity registered in the Philippines which aims to develop an
innovative product, process, or business model; and,
c. Startup Enabler - any person or registered entity in the Philippines registered under the
Philippine Startup Development Program that provides goods, services, or capital
identified to be critical in supporting the operation and growth of startups by the DTI in
consultation with DOST, DICT, and pertinent government and nongovernment
organizations (NGOs). Startup enablers shall include startup accelerators, incubators, co-
working spaces, investors, funders, event or meetup organizers catered to startups, and
other support organizations;

C. the majority of the direct employees are Filipinos, which must not be less than 15 in number.
The amendment lowered the direct hire requirement from 50 people.
IV. Foreign enterprises employing foreign nationals and enjoying fiscal incentives, including the reduced
paid in capitalization discussed above, shall implement an understudy and skills development program
to ensure transfer of technology and skills to Filipinos. Compliance to this shall be monitored regularly
by DOLE.