President Rodrigo Duterte during his Talk to the People. Image from PCOO / Facebook
MANILA, Philippines — President Rodrigo Duterte lowered the required paid-up capital for foreign retail enterprises, amending the Retail Trade Liberalization Act.
Duterte signed Republic Act (RA) No. 11595, amending RA No. 8762 or the Retail Trade Liberalization Act of 2000. A signed copy was released to reporters on Thursday.
Under the measure, a foreign retailer shall have at least P25 million in paid-up capital, lower than the $2.5 million which was stated in RA No. 8762.
The Department of Trade and Industry, the Securities and Exchange Commission, and the National Economic and Development Authority will review the required minimum paid-up capital every three years, the measure stated.
It added that a “‘minimum investment per store’ will include the value of the gross assets, tangible or intangible, including but not limited to buildings, leaseholds, furniture, equipment, inventory, and common use facilities.”
The act also reads: “In the case of foreign retailers engaged in retail trade through more than one physical store, the minimum investment per store must be at least ten million pesos.”
Violators will face imprisonment of at least four years to six years and a fine of P1 million to P5 million.
If the violator is not a Filipino citizen, he/she will be deported immediately after the service of sentence.