Forex Repatriation & Investment Protection

Foreign investors have the right to repatriate the entire liquidation proceeds of their investment in the currency in which the investment was originally made at the exchange rate prevailing at the time of repatriation. They also have the right to remit their earnings from the investment or such sums as may be necessary to meet the payment of interest and the principal on foreign loans and obligations arising from technological assistance contracts.

There shall be no expropriation by the government of the property represented by the investment of property of enterprises except for public use or in the interest of national welfare and defense, and upon payment of just compensation. In such cases, foreign investors or registered enterprises shall have the right to remit sums received as compensation for the expropriated property in the original currency at the prevailing exchange rate. Furthermore, there shall be no requisition fo the same property except in the event of war or national emergency and only for the duration. Just compensation for the requisitioned property may also be remitted in the original currency at the prevailing exchange rate.

In addition, investors are accorded the following under various agreements entered into by the Philippines and foreign states:

• Free transaction of capital – the Philippines allows all transfers relating to investments to be made freely and without delay into and out of its territory, subject to compliance with certain requirements imposed by laws and regulations.
• National treatment – the Philippines treats all investments equally whether made by foreign or local investors to the extent allowed by Philippine laws.
• Fair and equitable treatment – the Philippines affords to investments fair and equitable treatment and full protection and security in accordance with customary international law.