NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ]
First Regular Session 
)
of t’UC
*22 JUL12 A10S9
SENAT
S.B. No.
RlXEIVcD B1.
Introduced by Senator Maria Lourdes Nancy S. Binay
AN ACT PROVIDING BENEFITS AND INCENTIVES TO OVERSEAS FILIPINO 
WORKERS INVESTING IN BUSINESS IN THE PHILIPPINES
EXPLANATORY NOTE
Section 18, Article II of the Constitution provides that the State affirms labor as 
a primary social economic force. It shall protect the rights of workers and promote 
their welfare. Also, Section 20 , Article II of the Constitution provides that the State 
recognizes the indispensable role of the private sector, encourages private 
enterprise, and provides incentives to needed investments.
Overseas Filipino Workers (OFWs) choose to work hard abroad and live 
thousands of miles away from their families in exchange for providing their loved ones 
the financial support they need with the purpose of sending their children or family 
members to school in order to create a better life for them. In addition, providing their 
families a comfortable home.
Nevertheless, the government must not allow our OFWs, who are considered as 
today's heroes, to remain working abroad and endure being away from their families. 
We need to offer them opportunities to come back home by generating livelihood so 
they can be with their loved ones and lookout for their children and watch them grow.
This proposed bill seeks to grant OFWs benefits and incentives when they decide 
to invest in businesses in the Philippines by providing them access to financial literacy 
trainings and seminars as well as to capital to start their own businesses.
In view of the foregoing, the passage of this bill is earnestly sought.
MARIA LOURDES NANCY S. BINAY


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
Ornate
v'Dffin- oi r! c
*22 JUL 12 A10S9
SENATE
Introduced by Senator Maria Lourdes Nancy S. Binay
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AN ACT PROVIDING BENEFITS AND INCENTIVES TO OVERSEAS FILIPINO 
WORKERS INVESTING IN BUSINESS IN THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - 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 country or overseas. Further, the State 
recognizes the significant contribution of Overseas Filipino Workers (OFWs) 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 policies, it is likewise hereby declared 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 contribute 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 Worker (OFW)" is a person who is to be engaged, is 
engaged or has been engaged in a remunerated activity in a State of 
which the person is not a citizen or on board a vessel navigating the 
foreign seas other than a government ship used for military or 
noncommercial 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


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than five (5) years before the filing of an application for the registration 
provided for in Section 5 hereof;
(b) 
"Business Enterprise" \s 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 are essentially carried out through licensed professionals, likewise 
in the connection with the exercise of their profession.
(c) 
"OFW-ownedBusiness Enterprise"\s a business enterprise that falls under 
one of the following categories: (i) a Sole Proprietorship owned by an 
OFW; (ii) Partnerships, more than fifty percent (50%) of the capital of 
which was contributed by one or more partners who are OFWs; or (iii) a 
Stock Corporation, more than fifty percent (50%) 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 laws. 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.
SEC. 5. Other Benefits and Incentives. - An OFW-business enterprise may also 
avail of the following incentives:
(a) 
Fifty Percent (50%) reduction on real property taxes imposed on real 
property 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; and/or
(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. Eiigibiiity 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:
(a) 
A Sole Proprietorship owned by an OFW;
(b) 
A Partnership, more than fifty percent (50%) of the capital of which was 
contributed by one or more partners who are OFWs; or


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(c) A Stock Corporation, more than fifty percent (50%) 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 POEA or the Overseas Workers Welfare Administration 
(OWWA) that the person 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;
(b) 
Taxpayer Identification Number (TIN);
(c) 
Documents of registration as a business entity or enterprise issued by the 
appropriate government agencies such as the Security and Exchange 
Commission (SEC) for corporations and partnerships and the Department 
of Trade and Industry (DTI) for sole proprietorships; Provided, That in the 
case of micro enterprises as defined herein, registration with the office of 
the municipal or city treasurer shaii be deemed sufficient compliance with 
this requirement;
(d) 
Articles of Incorporation in the case of new corporations;
(e) 
Partnership Agreement in the case of new partnerships;
(f) 
General Information Sheet (GIS) in the case of existing corporations and 
partnerships.
No other document shall be required for the processing of this application.
SEC. 9. Financiai Literacy Program for OFWs; Information Dissemination. - To 
ensure that the incentives and benefits provided for under this Act shall be effectively 
harnessed and maximized, the Commission on Filipinos Overseas (CF), the Overseas 
Workers Welfare Administration (OWWA), and the National Reintegration Center of 
OFWs (NCRO) shall institutionalize the conduct of financial literacy programs and 
capacity building seminars on entrepreneurship and investment programs for 
Overseas Filipino Workers.


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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, 
Philippine Overseas Employment Administration (POEA), OWWA, and all other relevant 
government agencies with respect to overseas Filipinos, including all local government 
units, shall extensively carry out 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 qualif/ing for the benefits 
hereunder shall be immediately disqualified as a beneficiary hereof and its Certificate 
of Registration cancelled, 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 laws.
SEC. 11. Non-Transferabiiity. - The benefits and incentives 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. Impiementing Ruies and Reguiations. - The BIR in coordination with 
the 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. Separabiiity Ciause. - If any provision of this Act is subsequently 
declared invalid or unconstitutional, other provisions hereof which are not affected 
thereby shall remain in full force and effect.
SEC. 15. Repeaiing Ciause. - All laws, presidential decrees, executive order, 
issuances, presidential proclamations, rules and regulations or parts thereof which are 
contrary to and inconsistent with any provisions of this Act are hereby repealed, 
amended or modified accordingly.
Approved,