THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
SENATE 
s. 60. 
~ 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
It is the policy of the State to promote the establishment of business enterprises by 
Overseas Filipinos (OFs) worldwide and provide those who invest and engage in such 
enterprises incentives and benefits. This policy is enforced, in recognition of the 
significant contribution of overseas Filipinos to the national economy through their 
foreign exchange remittances, their incalculable sacrifices being away for long periods of 
time from their families and homeland, and the enormous potential of the foreign 
exchange earnings of OFs; in giving substance to their honorary title of Bagong Bayani; 
to help maximize the benefits QFs should obtain in their remittances; in instilling in OFs 
the need to prepare for reintegration in the Philippine society; and in helping "hasten the 
country's economic development by encouraging OFs to save, invest and/or engage in 
business enterprises which effectively serve as seedbed of Filipino entrepreneurial 
This bill seeks to put into action the state policies in relation to the reintegration 
of OFs in the Philippine society in helping them to save, invest and engage in business 
enterprises that would translate their hard-earned money into economic gains of the 
country. 
The following are the salient features of the bill: 
Registration of QFs and Certification As OF Investor that will accord the 
OFs the benefits and privileges as stipulated in this bill. 
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Savings and Investment Facilities for OF Investors wherein both 
government and private financial institutions shall develop savings 
facilities in attracting, generating and pooling funds, in either peso or US 
dollar currencies, for QFI, and provide them risk-free investment 
opportunities with preferential rates, to encourage OFIs to save and 
prepare for their eventual re-integration in the country. 
Short and long-term OF1 Bonds, which shall be issued by the Land bank 
of the Philippines in small denominations with guaranteed interest rate of 
ten (10) percent per annum or the prevailing market rate at the time of 
issuance whichever is higher. 
The government shall set aside at least ten (10) percent of the total equity 
for the OFIs and their families for new or existing businesses or 
enterprises requiring franchise or authority to operate by the government. 
These businesses or enterprises include utility companies, airport and 
seaport terminals, mining, and oil exploration and production businesses. 
Credit Facilities for OF Investors from government financial institutions 
such as the Land Bank of the Philippines (LBP), Development Bank of the 
Philippines (DBP),the Small Business Guarantee and Finance Corporation 
(SBGFC), and the People's Credit and Finance Corporation (PCFC) 
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The Social Security System (SSS) shall likewise set-up a special credit 
window that will serve the financing needs of their respective members, 
who are also OFIs, who wish to establish a business enterprise. 
The concerned financial institutions are encouraged to wholesale the funds 
to accredited private financial institutions including community-based 
organizations such as credit, cooperatives, non-government organizations 
(NGO's) and people's organizations, which will in turn, directly provide 
credit support to the business enterprises of OFIs. 
Fiscal Incentives for OF Investors such as: (a) Income Tax Exemptions for 
income arising from the operations of the enterprise for up to a period of 
ten (10) years regardless of the amount of capital that they are bringing in 
to the Philippines. 
The business enterprise of an OF Group Investor shall be given tax and 
duty exemptions on imported capital equipment and accompanying spare 
parts, subject to conditions 
Tax Credit for Taxes and Duties on Raw Materials - Every registered 
business enterprise of an OF1 shall enjoy tax credit equivalent to the 
national internal revenue taxes and customs duties paid on the supplies, 
raw materials and semi-manufactured products used in the manufacture, 
processing or production of its products and forming part thereof 
The local government units (LGUs) are encouraged to reduce the amount 
of local taxes, fees and charges imposed or to exempt the business 
enterprises of OF Investors from local taxes, fees and charges, up to a 
period of ten (10) years. 
A one stop-shop for all the business permits and licensing requirements of 
OF1 enterprises shall be implemented in every municipality and city in the 
country. 
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Technology Transfer, Production and Management Training, and 
Marketing Assistance to OF Investors 
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The Department of Labor and Employment shall create a re-integration 
and monitoring center that shall (a) Develop livelihood programs and 
projects for returning OFs in coordination with the private sector; (b) 
Coordinate with appropriate private and government agencies the 
promotion, development, replacement and the full utilization of their 
potentials; (c) Institute in cooperation with other government agencies 
concerned, a computer-based information system on skilled OFs which 
shall be accessible to all local recruitment agencies and employers, both 
public and private; and, (d) Provide a periodic study and assessment of job 
and livelihood opportunities for returning OFs . 
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The prompt and immediate passage of this bill deserves utmost attention. 
A 
MANUEL B. v LLAR, JR. 
t 
Senator 


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THIRTEENTH CONGRESS OF THE 
First Regular Session 
I 
, 
._I., 
REPUBLIC OF THE PHILIPPINES 
1
-
 
SENATE 
Q 
F. 
s. No. 
INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
I
,
 
ACT TO PROMOTE THE ESTABLISHMENT OF BUSINESS ENTERPRISES 
BY OVERSEAS FILIPINOS (OFs), PROVIDING INCENTIVES AND BENEFITS 
THEREOF, AND FOR OTHER PURPOSES” 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title - This Act shall be known as the Overseas Filipinos Investment Bill. 
SEC. 2. Declaration ofPolicy - It is the policy of the State to promote the establishment 
of business enterprises by Overseas Filipinos (OFs) worldwide and provide those who 
invest and engage in such enterprises incentives and benefits. This policy is enforced, in 
recognition of the significant contribution of overseas Filipinos to the national economy 
through their foreign exchange remittances, their incalculable sacrifices being away for 
long periods of time from their families and homeland, and the enormous potential of the 
foreign exchange earnings of OFs; in giving substance to their honorary title of Bagong 
Bayani; to help maximize the benefits OFs should obtain in their remittances; in instilling 
in OFs the need to prepare for reintegration in the Philippine society; and in helping 
“hasten the country’s economic development by encouraging OFs to save, invest and/or 
engage in business enterprises which effectively serve as seedbed of Filipino 
entrepreneurial talents”. 
SEC 3. DeJinition of Terms: As used in the Act, the following terms shall mean: 
Overseas Filipino (OF or OFs) refer to a person who is to be engaged, is engaged 
or has been engaged in a remunerated activity in a state of which he or she is not a legal 
resident or is a legal resident but is still a Filipino citizen and holder of a Philippine 
passport. 
OF Investor (OF0 is an individual or a group of OFIs, who saves and/or invests 
remunerations from work or activity outside the country under the guidelines set forth in 
this Act, Filipinos who are still Filipino citizens, holder of Philippine passport and are 
based abroad or anywhere in the world that brings in capital to the Philippines to be used 
in setting up businesses shall also be considered as OF Investor. An individual OF1 may 
save and/or invest in his name or through a business entity or enterprise in which he or 
she is its single proprietor, partner, or stockholder. A group of OFIs may save and/or 
invest collectively through a business entity formed as a partnership, cooperative or 
corporation; and shall be identified as OF Group Investor. A business entity, majority 
owned by OFIs, shall be considered as an OF Group Investor. 
SEC 4. Registration of OFs and CertiJication As OF Investor - (a) Individuals shall be 
recognized as OFs when they are so registered with the Philippine Overseas Employment 
Administration (POEA) and/or Overseas Workers’ Welfare Administration (OWWA) 
and/or the Department of Foreign Affairs (DFA). 


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(b) POEA and/or OWWA and/or DFA shall issue upon request by an individual a 
certification that he/she is an OF. Government as well as private institutions shall honor 
this certification and accord holder of this certification the benefits and privileges as 
stipulated herein. 
(c) The Office of the Treasurer of each city or municipality shall register the OF1 or the 
OF Group Investor's business enterprise and issue a certification to enable the business 
enterprise to avail of the benefits available under this Act. Any such application shall be 
processed within fifteen (1 5) working days upon submission of complete documents. 
Otherwise, the business enterprise shall be deemed registered. 
SEC 5. Savings and Investment Facilities for OF Investors - (a) Both government and 
private financial institutions shall develop savings facilities in attracting, generating and 
pooling funds, in either peso or US dollar currencies, for OFI, and provide them risk-free 
investment opportunities with preferential rates, to encourage OFIs to save and prepare 
for their eventual re-integration in the country. 
(b) The Overseas Workers' Investment Fund Board, under RA No. 7111 (An Act 
Establishing The Overseas Workers' Investment Fund To Provide Incentives To Overseas 
Workers, Reduce The Foreign Debt Burden, And For Other Purposes), in parallel with 
the provision of savings facilities as stated above, shall pursue investments by OFIs and 
grant benefits and privileges associated with RA No. 71 11. 
(c) Within six (6) months after this Act takes effect, the Department of Finance (DOF) 
through Land Bank of the Philippines (LBP) and Development Bank of the Philippines 
shall be able to offer to the OFs short and long-term OF1 Bonds in small denominations 
with guaranteed interest rate of ten (10) percent per m u m  or the prevailing market rate 
at the time of issuance whichever is higher. 
(d) The gove 
ent shall set aside at least ten (10) percent of the total equity for the OFIs 
authority to operate by the government. These businesses or enterprises include utility 
companies, airport and seaport terminals, mining, and oil exploration and production 
businesses. 
and their fmi T 
ies 'for new or existing businesses or enterprises requiring franchise or 
SEC 6. Credit Facilities for OF Investors - (a) OFIs shall also enjoy preferential benefits 
and privileges in availing funds (similar concept as provided and stated in Republic Act 
No. 9178 Section 9) from government financial institutions. The Land Bank of the 
Philippines (LBP), Development Bank of the Philippines (DBP),the Small Business 
Guarantee and Finance Corporation (SBGFC), and the People's Credit and Finance 
Corporation (PCFC) shall set-up a special credit window that will service the financing 
needs of the business enterprises of OFIs, certified under this Act, consistent with the 
Bangko Sentral ng Pilipinas (BSP) policies, rules and regulations. 
(b) The Social Security System (SSS) shall likewise set-up a special credit window that 
will serve the financing needs of their respective members, who are also OFIs, who wish 
to establish a business enterprise. 
(c) The concerned financial institutions are encouraged to wholesale the funds to 
accredited private financial institutions including community-based organizations such as 
credit, cooperatives, non-government organizations (NGO's) and people's organizations, 
which will in turn, directly provide credit support to the business enterprises of OFIs. 
(d) All loans from whatever sources granted to business enterprises of OFIs under this 
Act shall be considered as part of alternative compliance to Presidential Decree No. 717, 
otherwise known as the Agri-Agra Law, or to Republic Act No. 6977, known as the 


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Magna Carta for Small and Medium Enterprises, as amended. 
For purposes of 
compliance with Presidential Decree No. 717 and Republic Act No. 6977, as amended, 
loans granted to business enterprises of OFIs under this Act shall be computed at twice 
the amount of the face value of the loans. 
(e) Any existing laws to the contrary notwithstanding, interests, commissions and 
discounts derived from the loans by the LBP, DBP, PCFC and SBGFC granted to 
business enterprises of OFIs as well as loans extended by the SSS to their respective OF& 
member- employees under the Act shall be exempt from gross receipts tax (GRT). 
(f) To minimize the risks in lending to the OFIs, the SBGFC and the Quedan and Rural 
Credit Guarantee Corporation (QUEDANCOR) under the Department of Agriculture, in 
case of agribusiness activities, shall set up a special guarantee window to provide the 
necessary credit guarantee to OFIs under their respective guarantee programs. 
(g) The LBP, DBP, PCFC, SBGFC, SSS, and QUEDANCOR shall annually report to the 
appropriate Committees of both Houses of Congress on the status of the implementation 
of this provision. 
(h) The BSP shall formulate the rules for the implementation of this Section and shall 
likewise establish incentive programs to encourage and improve credit delivery to the 
business enterprises of OFIs. 
SEC 7. Fiscal Incentives for OF Investors -- All registered OFIs shall be granted the 
following incentives according to their preferred areas of investment. These include but 
are not limited to the following: 
(a) Income Tax Exemptions - Consistent with and similar to U No. 9178, all business 
enterprises of OF Investors shall be exempt from income tax for income arising from the 
operations of the enterprise for up to a period of ten (10) years regardless of the amount 
of capital that they are bringing in to the Philippines. 
(b) Similar to stipulation in the Omnibus Investments Code of 1987 for foreign 
investments. The business enterprise of an OF Group Investor shall be given tax and duty 
exemptions on imported capital equipment and accompanying spare parts, provided that 
the importation of machinery, equipment and accompanying spare parts shall comply 
with the following conditions: 
(i) They are hot manufactured domestically in sufficient quantity, or comparable 
quality, and at reasonable prices; 
(ii) They are reasonably needed and will be used exclusively by the OF1 in its 
registered activity, unless prior approval of the Board is secured for the part-time 
utilization of said equipment in a non-registered activity to maximize usage 
thereof or the proportionate taxes and duties are paid on specific equipment and 
machinery being permanently used for non-registered activities; 
(c) Tax Credit for Taxes and Duties on Raw Materials - Every registered business 
enterprise of an OF1 shall enjoy tax credit equivalent to the national internal revenue 
taxes and customs duties paid on the supplies, raw materials and semi-manufactured 
products used in the manufacture, processing or production of its products and forming 
part thereof; 


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SEC 8. Assistance of Local Government Units to OF Investors - (a) Local Government 
Units shall provide an environment favorable to the conduct of business enterprises by 
OFIs. 
(b) Similar to the provision of RA No. 9178, the local government units (LGUs) are 
encouraged to reduce the amount of local taxes, fees and charges imposed or to exempt 
the business enterprises of OF Investors from local taxes, fees and charges, up to a period 
of ten (10) years. 
(c) A one stop-shop for all the business permits and licensing requirements of OF1 
enterprises shall be implemented in every municipality and city in the country. 
SEC 9. Technology Transfer, Production and Management Training, and Marketing 
Assistance to OF Investors - (a) A Development Fund for Business Enterprises of OF 
Investors shall be established with an endowment from OWWA and shall be 
administered by OWWA itself. 
(b) The Department of Trade and Industry (DTI), the Department of Science and 
Technology (DOST), the University of the Philippines Institute for Small Scale Industries 
(UP-ISSI), Cooperative Development Authority (CDA), Technical Education and Skills 
Development Authority (TESDA), Technology and Livelihood Resource Center (TLRC) 
and accredited NGOs may avail of part of the said endowment for technology transfer, 
production and management training and marketing assistance to OFIs. 
(c) The DTI, in coordination with the private sector and non-government organizations 
(NGOs), shall explore the possibilities of linking or matching-up the business enterprises 
of OFIs with small, medium and large enterprises, and likewise establish incentives 
therefore. 
(d) The DTI, in behalf of the DOST, U p  ISSI, CDA, TESDA, TLRC and accredited 
NGOs shall be required to furnish the appropriate Committees of both Houses of 
Congress a yearly report on the development and accomplishments of their projects and 
programs in relation to technology transfer, production and management training and 
marketing assistance extended to business enterprises of OFIs. 
(e) The DTI, TESDA and TLRC shall provide research/technical/management training 
assistance to OFIs. 
(f) The DTI, TESDA, TLRC and other government agencies and NGOs shall also 
establish a team of business consultants that will provide coaching, consulting, 
monitoring and operations auditing services to OFIs to ensure a higher rate of success for 
their projects or enterprises. 
(g) The Department of Labor and Employment shall create a re-integration and 
monitoring center that shall (a) Develop livelihood programs and projects for returning 
OFs in coordination with the private sector; (b) Coordinate with appropriate private and 
government agencies the promotion, development, replacement and the full utilization of 
their potentials; (c) Institute in cooperation with other government agencies concerned, a 
computer-based information system on skilled OFs which shall be accessible to all local 
recruitment agencies and employers, both public and private; and, (d) Provide a periodic 
study and assessment of job and livelihood opportunities for returning OFs . 
SEC 10. Miscellaneous Provisions - (a) Exemption from the Coverage of the Minimum 
Wage Law. - The business enterprises of OFIs shall be exempt from the coverage of the 
Minimum Wage Law, provided that all employees covered under the Act shall be entitled 
to the same benefits given to any regular employee such as social security and healthcare 
benefits. 


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(b) Trade and Investment Promotion. - The data gathered from business registration shall 
be made accessible to and shall be utilized by private sector organizations and non- 
government organizations for purposes of business matching, trade and investment 
promotion. 
(c) Information Dissemination. - The Philippine Information Agency (PIA), in 
coordination with the Department of Labor and Employment (DOLE), the Department of 
Interior and Local Government (DILG), the Department of Trade and Industry (DTI), and 
the Department of Foreign Affairs (DFA) through their embassies and consulates abroad, 
shall ensure the proper and adequate information dissemination of the contents and 
benefits of the Act to the general public especially to its intended beneficiaries --- the 
OFs and their families both based in the Philippines and abroad. 
SEC. 11. Penalty and Administrative Sanctions. - (a) Any person who shall willfblly 
violate any provision of the Act or who shall in any manner commit any act to defeat any 
provision of the Act shall, upon conviction, be punished by a fine of not less than 
Twenty-five Thousand Pesos (P25,OOO.OO) but not more than Fifty Thousand Pesos 
(P50,OOO.OO) and suffer imprisonment of not less than six (6) months but not more than 
two (2) years. 
(b) In case of non-compliance with the provisions of Section 9 of the Act, the BSP shall 
impose administrative sanctions and other penalties on the concerned government 
financial institutions, including a fine of not less than Five Hundred Thousand Pesos 
(P500,OOO.OO). 
SEC. 12. Annual Report. - The DILG, DTI, and BSP shall submit an annual report to the 
Congress on the status of the implementation of the Act. 
SEC. 13. Implementing Rules and Regulations. - The Secretary of the Department of 
Trade and Industry, in consultation with the Secretaries of the DILG, DOF, and the BSP 
Governor shall formulate the necessary rules and regulations to implement the provisions 
of the Act within ninety (90) days after its approval. The rules and regulations issued 
pursuant to this section shall take effect fifteen (15) days after its publication in a 
newspaper of general circulation. 
SEC. 14. Separability Clause. - - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
SEC. 15. Repealing Clause. - Existing laws, presidential decrees, executive orders, 
proclamations or administrative regulations that are inconsistent with the provisions of 
the Act are hereby amended, modified, superseded or repealed accordingly. 
SEC. 16. Effectivity. - The Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in at least two (2) newspapers of general circulation. 
Approved