EIGHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
SENATE 
S.B. NO.
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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
EXPLANATORY NOTE
Article II, Section 18 of the 1987 Philippine Constitution provides:
"The State affirms labor as a primary social economic force. It 
shall protect the rights of workers and promote their welfare."
Article II, Section 20 of the 1987 Philippine Constitution provides:
"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 measure is earnestly sought.
MARIA LOURois N A N C ^. BINAY 
Senator


EIGHTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES
First Regular Session
SENAT^ r p
;.B. NO. 
o b b
O ltlI i, Ok lilt 
II*I P
•19 
JUL 17 
P2:48
____________ Introduced by Senator Maria Lourdes 
S. Binay 
______
AN ACT
PROVIDING BENEFITS AND INCENTIVES TO OVERSEAS FILIPINO 
WORKERS INVESTING IN BUSINESS IN THE PHILIPPINES
Be ft enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
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Section 1. Short Title. -  This Act shall be known as the "Business
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Incentives for OFWs Act."
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Sec. 2. Declaration o f Policy. -  It is the policy of the State to promote, at
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all times, the welfare of its citizens whether in country or overseas. Further, the
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State recognizes the significant contribution of Overseas Filipino Workers (OFWs)
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to the national economy through their foreign exchange remittances and their
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valuable role as a partner of our nation's progress. At the same time, the State
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recognizes the role of business enterprises for employment generation resulting
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in economic growth and a strong development foundation for the country.
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Pursuant to these policies, it is likewise hereby declared to be the policy of
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the State to oioneer and develop innovative means to provide incentives and
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other benefits to returning migrants who shall engage in business and invest in
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the Philippines, in order to effectively aid their reintegration through the
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productive use of remittances and at the same time contribute towards the
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development of national and local economies and skills-transfer.
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mean:
Sec. 3. Definition o f Terms. -  As used in this Act the following terms shall
(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 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" is 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-owned Business Enterprise" is a business enterprise 
that falls under one of the following categories: (i) a Sole 
Proprietorship owned by an OFW; (ii) Partnerships, more
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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.


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Sec. 6. Eligibility o f OFW-owned business enterprises. -  To qualify for the
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benefits and incentives provided to OFW-owned business enterprises under this
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Act, a business enterprise must fall under one of the following categories:
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(i) 
A Sole Proprietorship owned by an OFW;
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(ii) A Partnership, more than fifty percent (50%) of the capital
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of which was contributed by one or more partners who are
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OFWs; or
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(iii) A Stock Corporation, more than fifty percent (50%) of the
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outstanding capital stock of which is held by one or more
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OFWs.
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Sec. 7. Registration and Issuance o f Certificate. -  To qualify for the
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benefits and incentives under this Act, a business enterprise must apply for
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registration with the Bureau of Internal Revenue (BIR) as an OFW-owned
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business enterprise. Any such application shall be processed by the BIR free of
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charge within fifteen (15) working days upon submission of complete documents
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as provided in Section 8 of this Act. Otherwise, the OFW-owned business
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enterprise shall be deemed registered.
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Sec. 8. Documentary Requirements. -  The BIR shall require an OFW-
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owned business enterprise to submit the following requirements in its application
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for the Certificate of Registration:
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(a) Certificate from the POEA or the Overseas Workers Welfare
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Administration 
(OWWA) 
that 
the 
person 
seeking
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registration hereunder of their business entity or enterprise
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are OFWs as defined in Section 3(a) of this Act or a copy of
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their overseas employment contract duly approved by the
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POEA;
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(b) Taxpayer Identification Number (TIN);


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(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 shall 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. Financial 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.
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.


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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 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 o f Operations or Retirement o f 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 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. Separability Clause. -  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. Repealing Clause. -  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.
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Sec. 16. Effectivity Clause. -  This Act shall take effect fifteen (15) days
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after its complete publication in the Official Gazette or in two (2) newspapers of
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general circulation in the Philippines.
Approved,