Amendments to the Retail Trade Liberalization Act of 2000
Reduction of capitalization and relaxation of pre-qualification requirements for foreign retail enterprises under R.A. No. 8762 as amended by R.A. No. 11595
R.A. No. 11595, signed into law on December 10, 2021 and took effect on January 21, 2022, introduced the amendments to the original Retail Trade Liberalization Act under R.A. No. 8762, the salient portions of which are comparatively reproduced as follows:
|R.A. No. 8762||R.A. No. 11595|
|Foreign Equity Participation||1. 100% Foreign Ownership allowed for enterprises with minimum paid up capital the Philippine Peso equivalent of USD 2,500,000.|
Per store/branch investment of the Philippine Peso equivalent of USD 830,000.
100 % Foreign Ownership allowed for enterprises specialized in high-end or luxury products with paid up capital the Philippine Peso equivalent of USD 250,000.
|100% Foreign Ownership allowed for enterprises with minimum paid up capital of Php 25,000,000. |
Per store/branch investment of Php 10,000,000 for more than one (1) physical store.
|Qualification of Foreign Retailers||1. Minimum of USD 200,000,000 net worth of parent corporation; USD 50,000,000 for enterprises specialized in high-end or luxury products; |
2. Five (5) retailing branches worldwide or at least one (1) store capitalized at a minimum of USD 25,000,000;
3. Five (5) year retailing track record;
4. A national from or juridical entity formed or incorporated in countries which allow the entry of Filipino retailers.
|No more qualifications.|
The distinction between a regular foreign retailer and an enterprise which specialized in high-end or luxury products have been omitted, which means that there will no longer be any difference between them
The revised implementing rules and regulations is currently being deliberated by the Department of Trade and Industry.
A copy of the republic act is attached with this advisory for your reference.
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