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How to Remit Profits Out of the Philippines as a Foreign Investor: A 5-Step Checklist

By Joren Lex Tan March 5, 2026 6 min read
How to Remit Profits Out of the Philippines as a Foreign Investor: A 5-Step Checklist
Foreign investors can freely repatriate profits from the Philippines — but only if the right registrations and documentation are in place. Here's a step-by-step checklist covering BSP registration, tax clearances, and banking requirements.

You've incorporated in the Philippines, built your business, and now your company is turning a profit. The next question: how do you actually get those earnings back to your home country?

The good news is that the Philippines follows a liberalized foreign exchange policy. Under the BSP's Manual of Regulations on Foreign Exchange Transactions (FX Manual), investments registered with the BSP are entitled to full and immediate repatriation of capital and remittance of related earnings, using foreign exchange bought from Philippine banks, without prior BSP approval. But "entitled" and "hassle-free" are two different things. Without the right registrations, your bank may refuse to process the transfer.

Here's the five-step checklist every foreign investor should follow.

Step 1: Register Your Investment with the BSP

This is the step most foreign investors overlook — and it's the most important one.

When you first bring foreign currency into the Philippines to fund your business, that inward remittance should be registered with the Bangko Sentral ng Pilipinas (BSP). Registration is optional, but it is required if you will buy the foreign exchange for future repatriation and dividend remittances from Philippine banks. For a foreign direct investment, registration is evidenced by a Bangko Sentral Registration Document (BSRD), which the BSP now issues electronically.

Under Section 36 of the FX Manual (issued under BSP Circular No. 645, as amended, most recently for foreign investments by Circular No. 1192, Series of 2024), foreign direct investments are registered directly with the BSP's International Operations Department. (Registration through a registering Authorized Agent Bank (AAB) under Section 37 applies to other instruments, such as listed securities and government debt.) The key requirements are:

  • Proof of funding, such as the bank's Certificate of Inward Remittance of foreign exchange
  • Proof of the actual investment, such as SEC registration with the Articles of Incorporation, the latest General Information Sheet, and the applicable SEC forms under the Foreign Investments Act
  • Proof of authority, if someone other than the investor or investee company files the application
  • A transmittal letter addressed to the BSP International Operations Department

Why it matters: Without a BSRD, you can still remit profits — but you cannot purchase foreign exchange from the Philippine banking system to do so. You would be limited to using foreign currency sourced from outside the banking system, which significantly complicates the process.

Step 2: Ensure Tax Compliance Before Remitting

The Bureau of Internal Revenue (BIR) must get its share before any money leaves. Under the National Internal Revenue Code (NIRC), as amended by the CREATE Act (Republic Act No. 11534), dividend payments to foreign investors are subject to final withholding tax:

  • 25% — the general rate on dividends paid to non-resident foreign corporations (NIRC Section 28[B][5][b])
  • 15% — the reduced rate, available if the foreign investor's home country either (a) does not impose income tax on dividends, or (b) allows a credit for taxes deemed paid in the Philippines equal to the difference between the 25% regular rate and the 15% dividend rate, i.e., 10% (the "tax sparing" rule)
  • Treaty rates — may be lower if a tax treaty exists between the Philippines and the investor's home country. For example, the Philippines-Japan tax treaty reduces the rate to 10% for qualifying corporate shareholders.

Before remitting, your Philippine company should:

  • File and pay all applicable withholding taxes with the BIR
  • Obtain a tax clearance certificate confirming that all tax obligations related to the dividend declaration have been settled
  • Prepare audited financial statements confirming that retained earnings are available for distribution

Step 3: Secure a Board Resolution Declaring Dividends

Under the Revised Corporation Code (Republic Act No. 11232), dividends can only be declared out of unrestricted retained earnings — meaning profits that are not encumbered by legal restrictions, contractual obligations, or appropriations.

Your board of directors must pass a resolution that:

  • Declares the dividend amount and the record date
  • Identifies the payee (i.e., the foreign shareholder)
  • Authorizes the corporate secretary or treasurer to process the remittance

This board resolution is a standard documentary requirement that your bank will ask for when processing the outward remittance.

Step 4: Process the Remittance Through an Authorized Bank

With the BSRD, tax clearance, board resolution, and audited financials in hand, you can now approach your Authorized Agent Bank to process the outward remittance.

Under the BSP's foreign exchange regulations (originally governed by BSP Circular No. 645, Series of 2009, as amended by Circular No. 1192), the AAB will require:

  • The BSRD (issued electronically by the BSP, with its transmittal letter)
  • A duly accomplished Application to Purchase FX (Annex A of the FX Manual) and the computation of the peso amount to be converted (Annex N)
  • Board resolution declaring dividends
  • Audited financial statements
  • Proof of tax payment (BIR Form 1601-FQ or equivalent)
  • SEC Certificate of Filing of the General Information Sheet (GIS) showing ownership

The bank handles the actual purchase of foreign exchange and wire transfer. No prior BSP approval is needed — the process is bank-level, not central-bank-level.

Step 5: Keep Records for Future Remittances

This isn't a one-time exercise. If you plan to remit profits regularly (annually or quarterly), maintain an organized file of:

  • All BSRDs and amendments
  • Annual audited financial statements
  • Board resolutions for each dividend declaration
  • BIR filing confirmations and tax clearance certificates
  • Bank confirmation receipts for each remittance

Good recordkeeping speeds up future remittances and protects you in the event of a BIR or BSP audit.

What About Branch Profits?

If you operate as a branch office rather than a subsidiary, the rules differ slightly. Branch profit remittances are subject to a 15% branch profit remittance tax under NIRC Section 28(A)(4), applied to profits effectively connected with the Philippine branch's operations. This tax is withheld before remittance — no separate dividend declaration is needed since a branch is not a separate legal entity.

Key Takeaway

The Philippines does not restrict profit repatriation — but it requires proper documentation at every stage. The single most important step is registering your investment with the BSP at the time of entry. If you missed this step, consult a Philippine law firm immediately, as retroactive registration may still be possible under certain conditions.

For foreign investors planning their entry or looking to structure their first profit remittance, having legal counsel coordinate with your bank and the BIR from the outset saves significant time and cost down the line.

This article is for informational purposes only and does not constitute legal advice. For guidance specific to your situation, contact TTFC Law.

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