Special InTAX: April 2026 Issue 1 | Volume 2

Office of the President

On 13 April 2026, the President issued Executive Order (EO) No. 113, series of 2026, promulgating the Thirteenth (13^th) Regular Foreign Investment Negative List (RFINL). The EO replaces the 12^th RFINL and reflects updates to Negative Lists A and List B, pursuant to existing laws and in line with the government’s policy of easing restrictions on foreign participation in certain investment areas or activities.

Most of the restrictions under the 12^th RFINL are retained in the 13^th RFINL, except for the following changes and clarifications:

• No foreign equity is allowed in the corporate practice of the profession of Architecture, expressly reserving architecture firms to Filipino ownership.  The practice of other licensed or registered professions by foreign nationals remains governed by existing laws, generally on the basis of reciprocity, and any equity participation in corporations authorized to practice such profession continues to be subject to the limitations and conditions prescribed under applicable laws and regulations.

• Retail trade enterprises with paid-up capital of less than PhP25,000,000.00 may now have up to forty percent (40%) foreign equity, consistent with the amended Retail Trade Liberalization Act.

• The forty percent (40%) foreign equity cap on the exploration, development, and utilization of natural resources is clarified to include the appropriation of water directly from natural sources, except agreements entered into with the President involving technical or financial assistance for large-scale exploration, development, and utilization of minerals, petroleum, and other mineral oils. The EO likewise clarifies that full foreign participation is allowed in renewable energy projects, such as solar, wind, hydro and ocean or tidal energy, in accordance with existing laws.

• Up to forty percent (40%) foreign equity is allowed for government procurement of goods, infrastructure projects and consulting services; provided that, for infrastructure projects requiring the application of techniques or technologies not adequately possessed by Filipino entities, foreign ownership or interest may be allowed up to seventy-five percent (75%).

• Up to one hundred percent (100%) foreign equity is allowed in the operation and management of telecommunications where the country of the foreign national grants reciprocal rights to Philippine nationals.  In the absence of such reciprocity, foreign equity is capped at fifty percent (50%). 

• The list now includes up to forty percent (40%) foreign equity for the development, production, manufacturing, assembly, servicing or operation of materiel – including military technology, weapons systems, arms, ammunition, combat clothing, armor, vehicles, and other similar military equipment- by an in-country enterprise, for reasons of national security and defense.