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Procedures for Repatriation of Capital and Remittance of Dividends, Profits or Earnings

TIEZA foreign currency guide for repatriation of capital and remittance of dividends , profits or earnings

Your Browser Doesn't Support Canvas. Showing the Text Content of the PDF Instead: APPENDIX 11
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(As amended by Circular No. 794 dated 18 April 2013 and Circular No. 815 dated 18 October 2013)

Inward Foreign Investments and Other Investments
Procedures for Repatriation of Capital and
Remittance of Dividends/Profits/Earnings
I.

Capital Repatriation/Remittance of Dividends/Profits/Earnings
The repatriation of sales/divestments proceeds, including remittance of
dividends/profits/earnings which accrued to duly BSP-registered foreign
investments, may be effected by AABs without prior BSP approval upon
presentation of the original BSRD together with the supporting documents
under Items C.1 and C.2 of Appendix 1 of the Manual.
Whenever the repatriation/remittance shall be effected through an AAB
other than the custodian bank or the selling transaction was made through a
stock broker other than the custodian broker, the custodian bank/broker,
upon request from the remitting bank or selling broker, shall issue a BSRD
Letter Advice authorizing the latter to use fully or in part the remaining
shares covered by the pertinent BSRD. The remitting AAB shall only effect the
remittance upon presentation of the supporting documents under Item C.1
and C.2 of Appendix 1 of the Manual.

II.

Investments registered under the old Central Bank Registration Documents
(Transitory Procedures)
For capital repatriation:
The repatriation of capital of Central Bank registered direct foreign
investments shall be effected through a commercial bank, without prior BSP
approval, upon presentation of the following documents:
1.
2.

Proof of Central Bank Registration; and
Proof of Sale.

For remittance of dividends/profits/earnings:
1.
2.
III.

Board Resolution declaring dividend and the amount due the foreign
investor; and
Audited financial statements covering the dividend declaration period.

Reporting Requirements
1.

All remitting AABs (whether or not they sold the foreign exchange) shall
duly accomplish and submit to the BSP-International Operations
Department (IOD) a report (Annex X) on repatriation of capital and
outward remittance of cash dividends, profits and earnings of

APPENDIX 11
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(As amended by Circular No. 794 dated 18 April 2013 and Circular No. 815 dated 18 October 2013)

BSP-registered foreign direct investments to be submitted daily
accompanied by supporting documents mentioned in Items C.1 and C.2
of Appendix 1 within two (2) banking days from date of actual
remittance.
2.

The report form shall cover all remittances pertaining to foreign direct
investments (namely, investments in kind and in cash in non-PSE listed
firms) registered directly by the BSP.

3.

The following data shall be annotated at the back of the BSRD and duly
certified as correct by the authorized officer of the remitting bank:
a. On Capital Repatriation:
Identity of investments; sale or transaction date; no. of shares sold;
net peso sales proceeds after tax; Net USD equivalent of amount
remitted; Date of actual remittance; Country to which funds were
remitted; and Name of remitting bank.
b. On Dividends/Profits/Earnings Remittance
Identity of investments; record date; number of base shares;
dividend rate; net peso amount remitted after tax; Net USD
equivalent of amount remitted; date of actual remittance; country
to which remitted; and name of remitting bank.
The data shall be reflected in one line on a per remittance basis. If the
space at the back of the BSRD is not enough, additional page/s may be
used, which page/s shall be duly marked and certified by the bank’s
authorized officer as forming part of the BSRD.

4.

1

Transactions on: (a) BSP-registered investments in PSE-listed securities
of residents, government securities, other peso-denominated debt
instruments and peso time deposits, as well as (b) non-resident
investments in PSE-listed equity securities of non-residents, shall be
reported by custodian banks in their Report on Registered Portfolio
Investments.1

Softcopy to be sent to IOD at iod-pid@bsp.gov.ph, together with hard copies of supporting
documents listed under Appendices 1, 10 and 11. The subject line of the email shall indicate the
following: Report on Registered Portfolio Investments . This format
shall likewise be the filename convention for the attached report.
 
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