Grace period for FDI registration until March 8 only – BSP

Published February 18, 2020, 12:00 AM

by manilabulletin_admin

By LEE C. CHIPONGIAN

The Bangko Sentral ng Pilipinas (BSP) has issued a reminder that the one-year grace period for the registration of unregistered foreign direct investments (FDI) with the BSP sans processing fee will be until March 8 only.

The BSP from time to time allows grace periods for unregistered foreign investments, and some late registrations are admitted without penalty or even fees.

These grace periods allow existing FDIs to be registered with the BSP and to have the flexibility in sourcing foreign exchange (FX) for outward remittance of capital withdrawn from investments in the country and related income from same.

Last year, under BSP Circular No. 1030, the BSP provided a one-year grace period or from March 8, 2019 until March 8, 2020 permitting unregistered foreign investments to apply for registration with the BSP – “regardless of the date of funding, without processing fee.”

“Foreign investors or their authorized representatives may, within the remaining duration of the grace period, submit a duly accomplished application for registration of foreign investments (with other documents required),” said the BSP.

“Concerned parties are … 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 BSP added.

Grace periods for FDI registrations are aimed at increasing coverage of foreign exchange inflows.

The BSP has liberalized its FX measures 10x since 2007 to facilitate the use of FX resources of the banking system for legitimate purposes.

 
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