DOING BUSINESS IN THE PHILIPPINES

COUNTRY INTRODUCTION
Southeast Asian region.
One of the largest archipelagos in the world, composed of 7,107 islands with a total land
area of approximately 300,000 square kilometers.
Presidential, representative and democratic republic with three separate and co-equal
branches of government, i.e. executive, legislative (bicameral) and judiciary.
Philippine legal system - a diversified mix of civil law influenced by Spanish law, common
law based on Anglo-American law, and customary law. Muslim legal system is also
recognized.
Two primary sources of law are statutes or statutory law and jurisprudence or case law.
Language: English for business/contracts/laws/government and Filipino (Tagalog) for
spoken communications.
Currency: Philippine peso (P or PhP)
Multi-racial and multidenominational. Predominantly Malay and Roman Catholic.
Growing and emerging market. Liberalized and deregulated free market economy.
Investment growth areas include:
Manufacturing
Business process outsourcing
Mining
Renewable energy
Pharmaceutical industry
Tourism

BUSINESS PRESENCE

Corporations may be wholly owned subsidiary of foreigners if industry is open to foreign

investment.
Joint venture companies with Philippine nationals if industry falls within Foreign
Investments Negative List.
Branches may be given license to do business by Philippine Securities and Exchange
Commission (SEC) to perform head office activities unless a restricted industry.
Other business vehicles:
Representative office – limited to non-income generating activities, communications’
and coordination; promotions and liaison.
Regional Operating Headquarters - income generating activities through qualifying
services to head office, affiliates, subsidiaries or branches in the Philippines, and
other markets.
Regional or Area Headquarters - supervisory, communications and coordinating
center for subsidiaries, affiliates and branches in the region; non-income generating.
Appointment of distributors.

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FOREIGN INVESTMENT RESTRICTIONS AND CONDITIONS
Restrictions in Equity Participation

Generally, no restrictions on foreign investments unless limits on foreign equity are imposed
by applicable laws, such as:

Philippine Constitution of 1987

Foreign Investments Act of 1991, as amended (Republic Act No. 7042, “FIA”)
Omnibus Investments Code of 1987 (Executive Order No. 226)
Philippine Economic Zone Authority Law (Republic Act 7916)
Corporation Code (Batas Pambansa Blg. 68)
Other industry specific special laws.
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FIA prescribes Foreign Investments Negative List (FINL), currently, 8 FINL, which lists
industries/business activities where foreign investments are allowed, composed of two (2)
lists; List A and List B;
List A - consists of areas of activities reserved to Philippine nationals where foreign
equity participation in any domestic or export enterprise engaged in any activity listed
therein shall be limited to a maximum of forty percent (40%) as prescribed by the
Constitution and other specific laws; and
List B - consists of areas of activities where foreign ownership is limited pursuant to law
such as defense or law enforcement-related activities, which have negative implications
on public health and morals, and small and medium-scale enterprises.

Equity range from:

Up to 100% foreign equity, e.g. domestic market and export market enterprises not falling
in FINL with paid-in equity capital of not less than US$200,000; explosives manufacturing
authorized to have greater foreign equity by police authorities; and all forms of gambling
covered by investment agreements with Philippine Amusement and Gaming Corporation
and operating within special economic zones administered by the Philippine Economic
Zone Authority;
Up to 60% foreign equity, e.g. financing companies; investment houses.
Up to 40% foreign equity, e.g. exploitation, development and utilization of natural
resources but full foreign participation is allowed through financial or technical assistance
agreement with the Philippine President; ownership of private lands; public utilities;
educational institutions; ownership of condominium units where the common areas in the
condominium project are co-owned by the owners of the separate units or owned by a
corporation.
Up to 30% foreign equity, e.g. advertising.
Up to 25% foreign equity, e.g. private recruitment, local and overseas employment;
construction contracts for locally funded public works.
Up to 20% foreign equity, i.e. private radio communications network.
No foreign investments, e.g. mass media; practice of all professions; retail trade with less
than US$2.5M (full foreign participation allowed with paid-up capital of US$2.5M or more
or specializing in high-end or luxury products, provided that the paid-in capital per store is
not less than US$250,000; small-scale mining; etc.

Approvals and Licensing

Philippine SEC – primary government agency for incorporation of corporate entities.
Board of Investments – grants incentives and endorsements of RHQs, ROHQs and
representative offices.
Philippine Economic Zone Authority – registers locators in special economic zones.
Local Government Units – for local license to do business.

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EXCHANGE CONTROL
Residents and non-residents may purchase foreign exchange from Authorized Agent
Banks (AABs) duly licensed by the Bangko Sentral ng Pilipinas (BSP=central bank of the
Philippines), AAB-foreign exchange corporations (AAB-forex corps.) and other non-bank
entities operating as FX dealers/money changers (FXDs/MCs) subject to specific
documentary support/requirements depending on amount involved.
Optional Registration of foreign investments (i.e., made by non-residents) with BSP or
AABs. Required registration only if FX for repatriation of capital and remittance of
dividends/profits purchased from AABs and AAB forex corps.
Foreign investments duly registered with BSP entitled to full and immediate capital
repatriation and dividends and/profit remittance privileges without prior BSP approval and
at prevailing exchange rate.

Anti-Money Laundering Act of 2001 in force.

Anti-Money Laundering Council has jurisdiction.
Bangko Sentral ng Pilipinas enacted regulations imposing the customer-identification
(Know Your Client-KYC) requirements on banks; record keeping systems; and introduces
a suspicious transaction reporting system.
"Covered transaction" defined as a single, series, or combination of transactions involving
a total amount in excess of Four million Philippine pesos (Php4,000,000.00) or an
equivalent amount in foreign currency based on prevailing exchange rate within five (5)
consecutive banking days except those between a covered institution and a person who,
at time of transaction was a properly identified client and the amount is commensurate
with business or financial capacity of client; or those with an underlying legal or trade
obligation, purpose, origin or economic justification. Also refers to a single, series or
combination or pattern of unusually large and complex transactions in excess of Four
million Philippine pesos (Php4,000,000.00) especially cash deposits and investments
having no credible purpose or origin, underlying trade obligation or contract.
If foreign investment is to be registered – bank remittance documents and proof of receipt
by investee required – BSP then issues Bangko Sentral Registration Document.

TAXATION
General:
National Internal Revenue Code of 1997 (NIRC) – general tax law administered and
implemented by Bureau of Internal Revenue.
Local Government Code – grants local government units power to tax certain activities
within their jurisdiction.

Corporate Taxation:
Domestic corporations, i.e. incorporated under laws of the Philippines – subject to tax on
worldwide taxable income (gross income less allowable deductions) at 30% corporate
income tax.
Foreign corporations subject to tax only on income derived from Philippines sources also
at 30% of taxable income, if resident, and gross income, if nonresident.
Improperly Accumulated Earnings Tax (IAET) equivalent to 10% of improperly
accumulated taxable income or profits permitted to accumulate instead of divided or
distributed to stockholders, if domestic corporation.
Minimum Corporate Income Tax (MCIT) equivalent to 2% of gross income beginning on
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4 taxable year immediately following year in which such corporation commenced
business operations, when MCIT is greater than corporate income tax. Amount carried
forward and credited against normal income tax for three immediately succeeding taxable
years.
Domestic and resident foreign corporations are allowed to claim all business deductions
under NIRC in computing taxable net income. These deductions from gross income
include business expenses, interests, taxes, losses, bad debts, depreciation and

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 charitable and other contributions. Branch may deduct only such items as are specifically
allocable or directly related to Philippine income.
Branch profit remittance tax of 15% based on total profits applied or earmarked for
remittance without any deduction for tax component thereof, further reduction subject to
tax treaty.
Dividends received by resident foreign corporation from domestic corporation are exempt
from tax. Intercorporate dividends received by non-resident foreign corporation from
domestic corporation generally subject to final withholding tax of 35%. May be reduced
to 15% tax rate if country of domicile of non-resident corporation does not impose tax on
foreign-sourced dividends, or allows credit for taxes deemed paid in the Philippines
equivalent to 17% which is the difference between regular tax (35%) on corporations and
tax (15%) on dividends. May also be reduced by tax treaty.
Regional area headquarters or regional operating headquarters of multinational
companies – 10% of taxable income.

Individual Income Taxation:

Residents citizens engaged in trade or business are taxed upon worldwide net income
(gross income less allowable deductions and personal exemptions) according to schedule
of rates ranging from 3% to 32%.
Fringe benefits tax of 32% of grossed-up monetary value of employee’s benefits, e.g.
housing, expense accounts, vehicles, household personnel, membership fees and
educational fees payable by employer, who is responsible for withholding and remitting
tax.
Resident aliens and non-resident citizens are subject to same graduated tax rates but
only for income derived from all sources within the Philippines.
Non-resident aliens are taxed at 25% of gross income from sources within the Philippines
if stay within country does not exceed 180 days in calendar year (deemed not doing
business). Otherwise, taxed on basis of graduated rates.
Aliens employed by regional or area or regional operating headquarters of multinational
corporations, representative offices, offshore banking units, petroleum service contractors
and subcontractors are subject to income tax at 15% of gross income from such
employers (e.g. salaries, annuities, honoraria and allowances).
Cash and property dividends from domestic corporations and shares from the
distributable net income of a partnership or joint venture – 10%; if non-resident alien –
20%.

Value Added Tax:

VAT equivalent to 12% of gross selling price or gross value in money of goods or
properties sold, bartered or exchanged. Any excise tax on these goods is also part of the
gross selling price.
For imported goods, VAT is based on total value of goods as determined by Bureau of
Customs plus customs duties, excise taxes and incidental charges.
An indirect tax where obligation to collect and remit rests with seller, but cost of tax may
be passed on to buyer, transferee or lessee of the goods, properties or services.
A VAT registered entity may credit VAT paid on purchases of other goods and services
against tax on its current period sales of goods or services. If amount of input tax is
greater than amount of output tax, excess may be credited against succeeding period
output VAT.
VAT registered entities are required to issue invoice or receipt for every sale and,
maintain subsidiary sales and purchase journals exclusively for VAT purposes.
VAT reports are submitted on a quarterly basis, twenty-five days after quarter’s end. VAT
payments are on a monthly basis.

Capital Gains Tax:

On shares of stock - Capital gains realized from sale, exchange or disposition of shares
of stocks in any domestic corporation not traded through local stock exchange taxed at
5% for gains not over P100,000.00 and 10% for gains over P100,000.00.

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 Capital gains presumed to have been realized from the sale, exchange or disposition of
shares listed and traded through a local stock exchange is taxed at 1/2 of 1% based on
gross selling price of the shares.
On real property (lands and buildings) – final tax of 6% on gross selling price or fair
market value, whichever is higher, if treated as a capital assets.
On other capital assets – taxed as business income.

Withholding Tax;
Domestic corporations:
Interest from foreign currency deposits with local banks – 7.5%.
Interest from deposits and yield or any other monetary benefits from deposit substitutes
and from trust funds and similar arrangements, and royalties – 20%.
Foreign corporations:
Interest income derived by offshore banking units from foreign currency loan transactions
with residents – 10%.
Interest from deposits and yield or any other monetary benefits from deposit substitutes
and from trust funds and similar arrangements, and royalties from Philippine
sources – 20%.

Nonresident foreign corporations:

Interest on foreign loans – 20%.
Citizens and resident aliens:
Interest from deposits and yield from deposit substitutes and similar arrangements, and
royalties, prizes and other winnings, from Philippine sources – 20%.
Interest from foreign currency deposits in local bank – 7.5%
Interest from long-term deposits – exempt.

Indirect Taxes:
Documentary stamp taxes levied, collected and paid for upon documents, instruments,
loan agreements, and papers, and upon assignments and transfers of obligations, rights
and property. Rates vary depending on the transaction contemplated.
Donor’s tax imposed at progressive rates from 2% to 15%. If done or beneficiary is a
stranger, the rate is 30%. Corporate donations taxes at 30%. Gifts given to government
and certain accredited institutions exempt from donor’s tax. Donor’s taxes paid to a
foreign country by a citizen or resident at the time of donation are creditable.

Double Taxation Treaties:

The Philippines has tax treaties with 35 countries in order to minimize the effects of
double taxation.
Business profits of a resident of another country with whom Philippines has tax treaty are
taxable in the Philippines only if resident has permanent establishment in the Philippines
to which profits are attributable.
Preferential tax rates and exemptions are provided for under the treaties.
Treaty provisions take precedence over domestic tax laws in instances where treaty rates
are lower.

INVESTMENT INCENTIVES:
Incentives under the Omnibus Investments Code and administered by the Board of
Investments given to export-oriented businesses, projects in less-developed industries,
and registered with Philippine Economic Zone Authority.
Incentives include both fiscal and non-fiscal incentives such as:
Tax and duty free importation of capital equipment, machinery and accompanying
spare parts.
Tax credit on domestic capital equipment.
Income tax holiday for four (4) years for new non-pioneer firms and six (6) years for
new pioneer firms.
Additional deduction for labor expenses.
Exemption from contractor’s tax.
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 Simplification of customs procedures for the importation of equipment, spare parts,
raw materials and supplies and exports of processed products.
Employment of foreign nationals.
Tax credit for taxes and duties paid on raw materials, supplies and semi-
manufactured products used in the manufacture of export products.
Access to bonded warehouse system.
Exemption from wharfage dues and any export tax, duty, impost and fees.
Unrestricted use of consigned equipment.
Tax and duty exemption of imported spare parts and supplies for export producers
with customs bonded warehouse exporting at least 70% of production.

EMPLOYMENT LAW:
General Legal Framework:
Labor Code of the Philippines is general governing law; and special laws to govern social
security, employee’s compensation and sexual harassment, disable persons, among
others.
Labor law subdivided into four parts: labor standards, labor relations, law on termination of
employment and other special laws deemed subsumed within first three classifications.

Sectoral Requirements:
Parental leave for solo parents granted to under the Solo Parents’ Welfare Act of 2000.
Leave for victims of violence against women employees and their children extended under
the Anti-Violence Against Women and Their Children Act of 2004 so that they may attend to
medical and legal concerns.

Minimum Wage Requirements:

Determined by Regional Tripartite Wages and Productivity Board constituted among
different regions in the Philippines. Wage orders issued after consultation with various
sectors. Payment of minimum wage is mandatory. Non-compliance is penalized.
Other labor standards or minimum requirements:
Holiday pay refers to payment of regular daily wage for any unworked regular holiday.
Premium pay refers to additional compensation for work performed within eight hours
on non-work days, such as rest days and special days.
Overtime pay refers to additional compensation for work performed beyond eight hours
a day.
Night shift differential refers to additional compensation of ten percent of an
employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m.
Service charges collected by establishments are apportioned between employees and
management. 85% goes to all employees in equal share, while 15% may be retained
by management to answer for losses and breakages or, depending upon its discretion,
to be distributed among managerial employees. Ordinarily, most hotels and
restaurants collect service charges.
Service incentive leave of five days with pay is given to every employee who has
rendered at least one year of service.
Maternity leave applies to all female employees, whether married or unmarried who
are SSS members at time of delivery or miscarriage. They are entitled to maternity
benefit of sixty days in case of normal delivery or miscarriage, or seventy-eight days in
case of Caesarian section delivery.
Paternity leave benefit is granted to all married male employees in private sector,
regardless of their employment status and shall apply to the first four deliveries of
employee’s lawful wife with whom he is cohabiting.
Retirement benefits are given to employees who shall have reached 60 years of age
or more but not beyond 65 years of age, and who shall have served establishment for
at least five years.
Thirteenth month pay is given to rank and file employees, regardless of nature of
employment and irrespective of methods by which wages are paid, provided they
worked for at least one month during a calendar year and should be given not later
than December 24 of every year.
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 Rules on Termination of Employment:
Termination by Employer: Employer may terminate employment for just or authorized
cause.
The just causes for termination are the following:
serious misconduct or willful disobedience by employee of lawful orders of his
employer or representative in connection with his work;
gross and habitual neglect by employee of his duties;
fraud or willful breach by employee of trust of employer or duly authorized
representative;
commission of a crime or offense by employee against employer or any immediate
member of his family or his duly authorized representatives; and
other analogous causes.
Due process required – service of notice stating causes for termination; administrative
hearing required.
The authorized causes are the following:
installation of labor-saving devices
redundancy
retrenchment to prevent losses
closure or cessation of operation of establishment or undertaking unless closing is to
circumvent law.
o One month written notice on workers and Department of Labor and Employment.
o In termination due to installation of labor-saving devices or redundancy, payment
of separation pay equivalent to at least one month pay or to at least one month
pay for every year of service, whichever is higher.
o In retrenchment to prevent losses and in cases of closures or cessation of
operations of establishment or undertaking not due to serious business losses or
financial reverses, payment of separation pay equivalent to one month pay or at
least one-half month pay for every year of service, whichever is higher. A fraction
of at least six months shall be considered one whole year.
Other authorized causes for termination: Employee disease where continued
employment is prohibited by law or is prejudicial to his health and co-employees.
Payment of separation pay of at least one month salary or to one-half month salary for
every year of service, whichever is greater, a fraction of at least six months being
considered as one whole year.
Termination by employee: Employer may terminate employment without just cause upon
one month written notice on employer. Employer upon whom no such notice was served
may hold employee liable for damages. Termination without notice by employee for any
of the following just causes:
Serious insult by employer or his representative on employee’s honor and person;
Inhuman and unbearable treatment by employer or his representative;
Commission of a crime or offense by employer or his representative against employee
or any of immediate family members; and
Other analogous causes analogous.

Trade Unions:
Labor laws set minimum standards of labor relations. Employers and employees left to
determine or enhance employment terms by collective bargaining and negotiations. Trade
unionism is both a constitutionally and statutorily guarded right. Employers required by
law to collectively bargain in good faith. Employees also have constitutional right to
participate in policy and decision-making processes that affect their rights.

Statutory Contributions:
Social security benefits are packaged under a Social Security Program administered by
the government. They include death, disability, sickness, maternity and old age.
PhilHealth benefits are given to Philippine Health Insurance Corporation members
(compulsory for private employees) and include inpatient hospital care, services of health
care professionals, diagnostic, laboratory and other medical examination services, use of
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 surgical or medical equipment facilities, prescription drugs and biologicals among others,
and outpatient care.
Home Development Mutual Fund or the Pag-Ibig Fund is extended to all Social Security
System (SSS – private employees) and Government Service Insurance System (GSIS –
government employees) members earning P4,000 and above per month.

DISPUTE RESOLUTION

General Legal Framework:

Judicial Power, or the duty of court of justice to settle actual controversies involving
legally demandable and enforceable rights, and to determine whether there has been a
grave abuse of discretion amounting to lack or excess of jurisdiction on the part of any
branch or instrumentality of government, is vested in the Philippine Supreme Court and
other lower courts established by law.
Actions, civil or criminal, and special proceedings in all courts are governed by the
Revised Rules of Court. Election cases, cadastral, naturalization and insolvency
proceedings, and alternative dispute resolution are governed by their own rules of
procedure and by analogy or of a suppletory character by the Revised Rules of Court.

Court System:
The lower courts are courts of law and in special cases, equity, under the supervision of
the Supreme Court and these are the Court of Appeals, the Regional Trial Courts and the
Municipal Trial Courts.
Special courts for cases involving government officials known as the Sandiganbayan, and
for taxation cases known as the Court of Tax Appeals are also in place.
Parties to an action or a special proceeding are represented by counsel of their choice.

Alternative Dispute Resolution:

ADR is actively promoted by the Philippine Government and the Philippine Supreme
Court through the Alternative Dispute Resolution Act of 2004 (ADR Act) and the Special
Rules of Court on ADR to encourage party autonomy in the resolution of disputes or the
freedom of parties to provide their own arrangements to resolve disputes.
Other laws in place are the Arbitration Law of the Philippines which governs domestic
arbitration, and the Construction Industry Arbitration Law of 1985 that governs
construction disputes, and the arbitration provisions of the Labor Code of the Philippines.
Organizations such as the Philippine Dispute Resolution Centre, Inc. (PDRCI), the
Construction Industry Arbitration Commission (CIAC), and the labor arbiters, provide
arbitration venues.
International commercial arbitration in the Philippines is governed by the Model Law on
International Commercial Arbitration adopted by the United Nations Commission on
International Trade Law (UNCITRAL).
Court-Annexed Mediation (CAM) and Judicial Dispute Resolution (JDR) have also been
mandated by the Philippine Supreme Court in recent times to de-clog courts and provide
for inexpensive resolutions of disputes. CAM is an enhanced pre-trail procedure for the
settlement of cases through a court appointed mediator. JDR requires the judge to
become a mediator if a settlement cannot be reached through CAM.
Voluntary mediation, whether ad hoc or institutional, and including conciliation, is also
encouraged under the ADR Act.
Foreign arbitral awards are recognized and enforced under the New York Convention to
which the Philippines is a signatory, unless the award is not covered by the New York
Convention, in which case, the Philippine courts may, on grounds of comity and
reciprocity still recognize and enforce the non-convention award as a convention award.
It entails the filing of an action before the Regional Trial Court of the Philippines, and
when so confirmed by said court is enforced in the same manner as final and executory
decisions of courts of law of the Philippines.

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 Special conciliation proceedings amongst residents of a barangay (the smallest local
government unit) or a neighborhood are also in place under the barangay justice system
provisions of the Local Government Code of 1991.

IMMIGRATION PROCEDURES

Entry into the Philippines:

Foreigners are allowed to enter the Philippines without visas for stay not exceeding 21
days, provided, holders of passports valid for at least 6 months, and valid return. Upon
arrival, immigration officer will grant/stamp necessary visa on foreigner’s passport.
Restricted nationals required to secure proper entry visa from Philippine
Embassy/Consulate prior to entry.

Visas in the Philippines:

Two kinds of visa under Philippine Immigration Act, namely: (a) Non-immigrant visa and
(b) Immigrant visa.
Non-immigrant visa. The non-immigrant visa provides for seven (7) visa categories,
namely:
Temporary visitor visa. Granted for three purposes: (a) pleasure, (b) business, and
(c) health.
Extension of temporary visitor visa. Every two months and up to 16 months
without prior approval from Bureau of Immigration and Deportation (BID).
Transient visa. Issued to person in transit to a destination outside the Philippines.
Seaman visa. Issued to seaman serving on a vessel or civilian aircraft arriving at a
Philippine port and entering temporarily and solely as a seaman.
Treaty Traders Visa. Alien entering under a treaty of commerce and navigation (1)
solely to carry on substantial trade principally between the Philippines and the alien’s
country; or (2) solely to develop and direct operations of an enterprise in which, in
accordance with Philippine Constitution and laws he has invested or will invest a
substantial amount of capital.
Diplomatic visa. Issued to an accredited official of a foreign government, his family,
attendants, servants, and employees.
Student visa. Issued to student who will study at accredited Philippine university,
seminary, academy, college or school.
Pre-arranged employment visa. Given to foreigners who will engage in any lawful
occupation as an employee. Validity of visa is usually co-terminus with duration of
employment.
Immigrant visa. Grants permanent residency status to foreigner premised on principle of
reciprocity with foreigner’s country. Immigrant visa are of two kinds, (a) quota and (b)
non-quota visa.
Quota visa. Issued only to fifty (50) foreigners annually for each nationality whose
countries accept Filipinos as immigrants on a reciprocal basis. Basic requirements
are that foreigners must
have lawfully entered Philippines and remains under a lawful admission status;
have no record of any derogatory information in any local or foreign law
enforcement agency;
have not been afflicted with any dangerous, contagious or loathsome disease;
and
has sufficient capital for a viable and sustainable investment (US$40,000.00).
Non-quota visa. Issued on basis of relationship of an applicant with Filipino citizen,
either by marriage, paternity or filiation. Not subject to any numerical limitation or
order of preference.
Special non-immigrant visa. Under Section 47(a) (2) of the Philippine
Immigration Act, the President is authorized, when public interest warrants, to
issue special non-immigrant visa subject to conditions he may prescribed. The
President, acting through the appropriate government agencies, has exercised
this authority to allow the entry of foreign personnel in the following areas:
Oil drilling companies
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 Philippine Economic Zone Authority Registered Enterprise
Board of Investment Registered Enterprises
Special kind of visas. Granted under Special Laws:
Special Visa for Employment Generation Special (SVEG) - issued to qualified
non-immigrant foreigner who actually employs at least ten (10) Filipinos in
lawful and sustainable enterprise, trade or industry.
Special Investor’s Resident Visa (SIRV) - issued to investor with at least
US$75,000.00 in the Philippines.
Special Resident Retiree Visa (SRRV) - issued to foreign retirees who seek
an easy and comfortable lifestyle with a deposit of US$75,000.00 or
US$50,000.00, depending upon retiree’s age, in any accredited Philippine
bank.

Work Permits:
Alien Employment Permit (AEP). Issued by Department of Labor and Employment
(DOLE) and a precondition to grant of pre-arranged employment visa and is co-terminus
with duration of foreigner’s employment.
Special Working Permit (SWP). For assignments not exceeding six (6) months, provided,
foreigner maintains his Temporary Visitor/Business Visa for duration of Philippine stay.

Registration of Foreigners:
All covered registered aliens are required to procure an Alien Certificate of Registration
(ACR) i-card - a microchip-based identification card. ACR i-card serves as Emigration
Clearance Certificate (ECC), Re-entry Permit (RP) and Special Return Certificate (SRC)
of foreigner upon payment of required fees.

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