THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
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S E N A T E  
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S. B. No. 
1925 
Introduced by SENATOR FRANCIS N. PANGILINAN 
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EXPLANATORY NOTE' 
, ' The emigration of Filipinos to foreign countries is a phenomenon that has been 
going ion for the last three to four decades. Today, the exodus of Filipinos continues. 
Everyday, thousands leave the country to seek better employment opportunities abroad. 
As the mass departure of Filipinos has been said to gradually deplete the labor resource 
of thelcountry, this phenomenon is however, doing the country more good than bad for 
the following reasons. First, Overseas Filipinos (OFs) have raised the competence of the 
Filipino worker as they are sought and preferred by foreign employers because of their 
skills land efficiency. 
Secondly, being gainfully employed, OFs are a significant 
economic force in the country, taking into account the foreign exchange remittances that 
keep the economy alive. 
Overseas Filipinos, regarded as the country's "new heroes," have to endure being 
separated from their families to earn dollars abroad. An estimated eight billion dollars 
every year is remitted to their families and the OFs greatly contribute to the country's 
economy through these remittances. The government recognizes the contribution of the 
OFs in the country's economic development, hence is seeking ways on how the OFs can 
productively invest in business opportunities in the country. By providing avenues for 
their economic development, government is working toward reintegrating the OFs into 
Philippine society. The government also acknowledges the desire of the OFs' to come 
back home to their families and invest in economic activities in the country. 
This bill seeks to implement policies for the reintegration of the OFs into 
society by providing opportunities for them to save, invest and engage in 
It seeks to look after the economic interests of the OFs by providing 
policies. Likewise, the bill seeks to provide incentives and benefits 
considerations, the immediate approval of this bill is 
incentives in certain areas of investment. 
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P ANGILINAN 


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OF THE REPUBLIC 
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Introduced by SENATOR PANGILINAN 
AN ACT 
PROMOTING THE ESTABLISHMENT OF BUSINESS ENTERPRISES BY 
OVERSEAS FIJJPINOS (OFs), PROVIDING INCENTIVES AND BENEFITS 
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THEREOF, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Republic of the 
Philippines in Congress assembled: 
SECTION 1. Title - This Act shall be known as the Overseas Filipinos Investment Bill. 
SEC. 2. Declaration of Policy - It is the policy of the State to promote the establishment 
of business enterprises by Overseas Filipinos (OFs) worldwide and provide incentives 
and benefits to those who invest and engage in such enterprises. This policy is an 
acknowledgement of the significant contribution of Overseas Filipinos to the national 
economy through the foreign currency remittances, which has kept the economy of the 
country stable. The OFs endure the sacrifice of being separated from their families and 
from their country principally to find better employment opportunities to provide for the 
needs of their families. The government recognizes the OFs’ dedication to their families 
and their desire to look aRer the wellbeing of their loved ones. The government’s efforts 
in providing ways on how the OFs can invest and engage in business activities in the 
country is a commitment to OFs, to give back the gains that they have brought to the 
country 
The government is working toward 
the reint gration of the OFs into Philippine society by encouraging them to invest and 
establish their business enterprises in the country. 
SEG. 3: DeJnition of Terms: As used in the Act, the following terms shall mean: 
ough the foreign currency remittances. 
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Overseas Filipino (OF or OFs) refers 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 still a Filipino citizen and holder of a Philippine 
passport. 
OF Investor (OF0 is an individual or a group of OFfs, 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, holders of Philippine passport-sd are 
based abroad or anywhere in the world that brings in capital to the PMIippines to be used 
in setting up businesses shall also be considered OF Investors. An OF1 may save and/or 
invest in his name or through a business entity or enterprise in which he or she is the 
single proprietor, partner, or stockholder. A group of OFIs may save andor invest 
collectively through a business entity formed by a partnership, cooperative or 


corpo?ation; and shall be identified as OF Group Investor. A business entity, majority 
owned by OFIs, shall be considered 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 
Admidistration (POEA) and/or Overseas Workers’ Welfare Administration -(OWWA) 
and/or the Depmtment of Foreign Affairs (DFA). 
(b) POEA and/or OWWA andor DFA shall issue upon request by an individual a 
certification that heishe is an OF. Government as well as private institutions shall honor 
this c6rtification and accord the holder of this certification the benefits and privileges as 
stipula!ed herein. 
(c) The Office of the Treasurer of each city or municipality shall register the OF1 or the 
OF Grmp Investor’s business enterprise and issue a certification to enable the business 
enterpkise to avail of the benefits available under this Act. Any such application shall be 
processed within fifteen (15) working days upon submission of complete documents. 
Otheeise, the business enterprise shall be deemed registered. 
SEC. 5. Savings and Investment Facilities for OF Investors - (a) Both government and 
private financial institutions shall provide savings facilities in attracting, generating and 
pooling funds, in either peso or US dollar currencies, for the OFI, and provide them risk- 
free iqvestment opportunities with preferential rates, to encourage OFIs to save and 
prepare for their eventual re-integration in the country. 
(b) Tfie 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), 
facilities as stated above, shall pursue investments 
related to RA No. 71 11. 
takes effect, the Department of Finance (DOF), 
and Development Bank of the Philippines, 
OF1 Bonds in small denominations 
or the prevailing market rate 
at the time of issuance whichever is higher. 
(d) 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 business enterprises include utility 
companies, airport and seaport terminals, mining and oil exploration and production 
businesses. 
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SEC. 6. Credit FaciZities 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 (SBGCF), 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. 


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(b) The Social Security System (SSS) shall likewise set-up a specialxredit 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 fmancial institutions are encouraged to extend 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 any source 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 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 law to the contrary notwithstanding, interests, commissions and 
discounts derived from the loans by the LBP, DBP, PCFC and SBGFC granted to 
business enterprises ofOFIs as well as loans extended by the SSS to their respective OF1 
member-employees under the Act shall be exempt from gross receipts tax (GRT). 
(f) To minimize the risks on the part of 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 
necessa 'y credit guarantee to OFIs under their respective guarantee programs. 
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(g) The BP, DBP, PCFC, SBGCF, SSS, and QUEDANCOR shall annually report to the 
appropf' te Committees of both Houses of Congress on the status of the implementation 
of this p ovision. 
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(h) The BSP shall formulate the rules for the implementation of this Section and shall 
likewide establish incentive programs to encourage and improve credit delivery to the 
business enterprises of OFIs. 
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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: 
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(a) Income Tax Exemptions - Consistent with and similar to RA No. 9178, all 
business enterprises of OF Investors shall be exempt from 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 the 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 not manufactured domestically in sufficient quantity, or 
comparable quality, and at reasonable prices; 
They are reasonably needed and will be used exclusively by the OFIs in 
their registered activity, unless prior approval o f  the Board is secured for 
the part-time utilization of said equipment in a non-registered activity to 
(ii) 


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registered activities; 
maximize usage thereof or the proportionate taxes and duties are paid on 
specific equipment and machinery being permanently used for non- 
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( 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-manufactwed 
products used in the manufacture, processing or production of its products and 
forming part thereof; 
SEC. 8. Assistance of Local Government Unifs to OF Investors - (a) Local 
Oovernment Units shall provide an environment favorable to the conduct of business 
enterprises by OFIs. 
(b)' Similar to the provision of RA No. 91 78, the Local Government Units (LGUs) are 
lencouraged to reduce the amount of local taxes, fees and charges imposed. They 
I are likewise encouraged to exempt the business enterprises of OF Investors from 
 local taxes, fees and charges, up to a period of ten (10) years. 
(c) $ one stop-shop for all the business permits and licensing requirements of OF1 
i nterprises shall be implemented in every municipality and city in the country. 
SEd. 9. Technology Transfer, Production and Management Truining and Marketing 
Asdistance to OF Investors - (a) A Development Fund for Business Enterprises of OF 
Investors shall be established with an endowment from OWWA which it shall 
likiwise administer. 
(b)lThe 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 and 
ILivelihood Research Center (TLRC) and accredited NGOs may avail part of the 
 said endowment for technology transfer, production and management trainlg and 
marketing assistance to OFIs. 
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(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 behal€ of the DOST, UP 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, TLRC shall provide researc~technicaumanagement 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 the success of the 
business 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 the potentials of OFs; (c) Institute a 
computer-based information system containing a list of skilled OFs, in 
cooperation with other government agencies, 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. io. Miscellaneous Provisions - (a) Exemption from the Coverage of the Minimum 
Wage L w. - The business enterprises of OFIs shall be exempt from the coverage of the 
Minim,, Wage Law, provided that a11 employees covered under the Act shall be.entitled 
to the S 1 
e benefits given to any regular employees such as social security and healthcare 
benefi<s 
(b), rude and Investment Promotion - The data gathered from business registration 
shall be made accessible to and shall be utilized by private sector organizations and 
noA-government organizations for purposes of business matching, trade and 
in+stment promotion. 
( c) Information Dissemination - The Philippine Information Agency (PIA), in 
coqrdination with the Department of Labor and Employment (DOLE), the 
Department of Interior and Local Government (DILG), the Department of Trade and 
Intiustry (DTI), and the Department of Foreign Affairs (DFA) through their embassies 
and consulates abroad, shall ensure that information on  the^ bmxfits of the-Act is 
properly disseminated to the general public, particularly 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 willllly 
violate'any provision of the Act shall, upon conviction, be punished with 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 (P5O0,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 iinety (90) days after its approval. The rules and regulations issued 
to this section shall take effect fifteen (15) days after its publication in a 
r of general circulation. 


SEC. 14. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitntio~ial, the remainder of the law or the provision not otherwise affected shall 
remain valid and subsisting. 
SEC. k5. Repealing Cluufe. - Existing laws, presidential decrees, executive orders, 
proclamations or administrative regulations that are inconsistent with the provisions of 
the Act 
SEC. 1 . Effectivily. - The Act shall take effect fifteen (15) days after its publication in 
the Offi ial Gazette or in at least two (2) newspapers of general circulation. 
Approled, 
e hereby amended, modified, superseded or repealed accordingly. 
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