‘ t I
TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
■' ■.Oui:!' !k i'i’
25 JUL21 A10 35
S. No.
SENATE
732
RiiCLivt::
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
GRANTING BENEFITS AND INCENTIVES TO OVERSEAS FILIPINO 
WORKERS INVESTING IN BUSINESS IN THE PHILIPPINES
EXPLANATORY NOTE
According to the Bangko Sentral ng Pilipinas (BSP), the cumulative cash 
remittances in 2024 from Overseas Filipino Workers (OFWs) amounted to $34.49 
billion or around P2.23 trillion. The BSP highlights the benefits of remittances as they 
serve as a "catalyst for economic activity in supporting growth and development in 
the receiving country." Remittances can be utilized to bring more benefits through 
investments, one of those comes in the form of business ventures.
At present, the government has programs that support aspiring entrepreneurs 
to enable ordinary Filipinos in the Philippines to become productive business owners. 
However, there is no program that grants OFWs benefits and incentives when they 
choose to invest in businesses in the Philippines.
This bill seeks to combine financial literacy programs and capacity building 
seminars on entrepreneurship and investment. Furthermore it seeks better incentives 
for OFWs to spur local development and yield higher impact to the economy.


In view of the foregoing, the approval of this bill is earnestly sought.
FRANCIS NfS^NGILINAN
Senat^


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TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
. ' Orticr a:’1
25 JUL21 A10 35
SENATE
S. No. 732
Introduced by Senator FRANCIS N. PANGILINAN
AN ACT
GRANTING BENEFITS AND INCENTIVES TO OVERSEAS FILIPINO WORKERS 
INVESTING IN BUSINESS IN THE PHILIPPINES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Tide. - This Act shall be known as the "Business Incentives for OFWs
Act."
Sec. 2. Declaration of Policy. - It is the policy of the State to promote, at all 
times, the welfare of its citizens whether in the country or overseas. Further, the State 
recognizes the significant contribution of Overseas Filipinos Workers to the national 
economy through their foreign exchange remittances and their valuable role as a 
partner of our nation's progress. At the same time, the State, recognizes the role of 
business enterprises for employment generation resulting in economic growth and a 
strong development foundation for the country.
Pursuant to these poiicies, it is likewise hereby deciared to be the policy of the 
State to pioneer and develop innovative means to provide incentives and other 
benefits to returning migrants who shall engage in business and invest in the 
Philippines, in order to effectively aid their reintegration through the productive use 
of remittances and at the same time contributed towards the development of national 
and local economies and skills-transfer.
Sec. 3. Definition of Terms. - As used in this Act, the following terms shall mean: 
a. Overseas Filipino Workers- a person who is to be engaged, is engaged 
or has been engaged in a remunerated activity in a State of which the


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person is not a citizen or on board a vessel navigating the foreign seas 
other than a government ship used for military or non-commercial 
purposes or on an installation located offshore or on the high seas: 
Provided, That one whose employment overseas has ceased, by reason 
of expiration of such contract or otherwise, shall still be considered an 
OFW under this Act if the cessation took place not more than five (5) 
years before the filing of an application for the registration provided for 
in Section 5 hereof.
b. 
Business Enterprise - a duly registered business engaged in industry, 
agribusiness and/or services, whether a single proprietorship, 
cooperative, partnership or corporation. A business engaged in services 
shall exclude those rendered by (i) natural persons who are duly licensed 
by the government after having passed a government licensure 
examination, in connection with the exercise of their profession, and (ii) 
juridical persons such as partnerships or corporations engaged in 
consultancy, advisory and similar services where the performance of 
such services is essentially carried out through licensed professionals, 
likewise in connection with the exercise of their profession.
c. 
OFW-ownedBusiness Enterprise- a business enterprise that falls under 
one of the following categories: (i) a sole proprietorship owned by an 
OFW; (ii) a partnership, more than fifty (50) percent of the capital of 
which was contributed by one or more partners who are OFWs; or (iii) a 
stock corporation, more than fifty (50) percent of the outstanding capital 
stock of which is held by one or more OFWs.
Sec. 4. Tax Exemption. - An OFW-owned business enterprise shall be exempt 
from the payment of income tax for a non-extendable period of five (5) years following 
registration. This exemption is without prejudice to any other benefit or tax exemption 
granted to the enterprise by any other law.
All local government units (LGUs) are encouraged either to reduce the amount 
of local taxes, fees, and charges imposed or to exempt an OFW-owned business 
enterprise from local taxes, fees, and charges.


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Sec. 5. Other Benefits and Incentives. - An ORA/-owned business enterprise may 
also avail of the following incentives:
a. 
Fifty (50) percent reduction on real property taxes imposed on real 
property used for the operation of the OFW-owned business enterprise;
b. Tax and duty free importation of raw materials, capital equipment, 
machineries, and spare parts exclusively used in the operation of the 
OFW-owned business enterprise;
c. 
Preferential access to financing from government financial institutions at 
rates below the market rates;
Provided, That an OFW-owned business enterprise may avail of these incentives 
for a period of five years following registration.
Sec. 6. Eligibility of OFW-owned Business Enterprises. - To qualify for the 
benefits and incentives provided to OFW-owned business enterprises under this Act, 
a business enterprise must fall under one of the following categories: (i) a sole 
proprietor owned by an OFW; (ii) a partnership, more than fifty (50) percent of the 
capital of which was contributed by one or more partners who are OFWs; or (iii) a 
stock corporation, more than fifty (50) percent of the outstanding capital stock of 
which is held by one or more OFWs.
Sec. 7. Registration and Issuance of Certificate. - To qualify for the benefits and 
incentives under this Act, a business enterprise must apply for registration with the 
Bureau of Internal Revenue (BIR) as an OFW-owned business enterprise. Any such 
application shall be processed by the BIR free of charge within fifteen (15) working 
days upon submission of complete documents as provided in Section 8 of this Act. 
Otherwise, the OFW-owned business enterprise shall be deemed registered.
Sec. 8. Documentary Requirements. - The BIR shall require an OFW-owned 
business enterprise to submit the following requirements in its application for the 
Certificate of Registration:
a. Certificate from the Philippine Overseas Employment Administration 
(POEA) or the Overseas Workers Welfare Administration (OWWA) that 
the persons seeking registration hereunder of their business entity or 
enterprise are OFWs as defined in Section 3(a) of this Act or a copy of 
their overseas employment contract duly approved by the POEA;


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b. Taxpayer Identification Number (TIN);
c. 
Documents of registration as a business entity or enterprise issued by 
the appropriate government agencies such as the Securities and 
Exchange Commission (SEC) for corporations and partnerships and the 
Department of Trade and Industry (DTT) for soie proprietorships: 
Provided, That in the case of microenterprises as defined herein, 
registration with the Office of the Municipal or City Treasurer shall be 
deemed sufficient compliance with this requirement;
d. Articies of Incorporation in the case of new corporations;
e. 
Partnership Agreement in the case of new partnerships;
f. 
Generai Information Sheet (GIS) in the case of existing corporations and 
partnerships.
No other document shall be required for the processing of the appiication.
Sec. 9. Financial Literacy Program for OFWs; Information Dissemination. - To 
ensure that the incentives and benefits provided for under this Act shali be effectively 
harnessed and maximized, the Commission on Filipino Overseas (CFO), the OWWA, 
and the National Reintegration Center of OFWs (NRCO) shall institutionalize the 
conduct of financial literacy programs and capacity building seminars on 
entrepreneurship and investment programs for Overseas Fiiipinos Workers.
Provided, That in the conduct of pre-employment/pre-departure orientation 
seminars, post-arrival/reintegration seminars, the financial literacy programs shall 
likewise be incorporated as an integral part thereof.
Provided, further. That the Department of Foreign Affairs (DFA), CFO, POEA, 
OWWA, and all other relevant government agencies with respect to overseas Filipinos, 
including ail local government units, shali extensively carry information dissemination 
on the benefits and program provided for in this Act.
Sec. 10. Fraud or Misrepresentation. - Any business entity found to have 
committed fraud or misrepresentation for the purpose of qualifying for the benefits 
hereunder shall be immediately disqualified as a beneficiary hereof and its Certificate 
of Registration canceiled, without prejudice to the assessment and collection of back 
taxes for the period corresponding to its exemption, as well as to any administrative, 
criminal or civil liability under existing iaws.


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Sec. 11. Non-Transferability. - The benefits provided in this Act cannot be 
transferred to any other person, association or business entity.
Sec. 12. Cessation of Operations or Retirement of Business. - Any enterprise 
registered hereunder that retires or otherwise ceases its business operations shall 
thereupon be excluded from the coverage of this Act. Within thirty (30) days 
therefrom, the enterprise shall report the fact of such retirement or cessation to the 
BIR, which shall then cancel the enterprise's Certificate of Registration.
Sec. 13. Implementing Rules and Regulations. - The BIR in coordination with 
POEA, DTI, and SEC shall promulgate not later than sixty (60) days upon the effectivity 
of this Act the necessary rules and regulations for its effective implementation.
Sec. 14. Separability Clause. - If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected by such declaration shall remain in 
full force and effect.
Sec. 15. Repealing Clause. - All laws, executive orders, administrative orders, 
and rules and regulations inconsistent with this Act are hereby repealed or amended 
accordingly.
Sec. 16. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in two (2) newspapers of general 
circulation.
Approved,