The Bureau of Internal Revenue issued Revenue Memorandum Circular (RMC) No. 11-2022 on January 24, 2022, to circularize Republic Act No. 11595, titled “An Act Amending Republic Act No. 8762, Otherwise Known as the ‘Retail Trade Liberalization Act of 2000’, by Lowering the Required Paid-Up Capital for Foreign Retail Enterprises, and for Other Purposes”.
Some of the relevant amendments to the Retail Trade Liberation Act (RTLA) are as follows:
1. Removal of the requirement for a Certificate of Pre-qualification and the need to show compliance with the criteria for pre-qualification
2. Sets a single minimum paid-up capital requirement of PHP 25 Million for all foreign-owned retail trade enterprises
3. Lowers the minimum investment requirement per store to PHP 10 Million, which includes the gross assets, tangible or intangible
4. Review every three (3) years of the amount of required minimum paid-up capital of foreign retailers by the Department of Trade and Industry (DTI), Securities and Exchange Commission (SEC), and National Economic and Development Authority (NEDA).
5. Removal of the requirement for public offering of shares within eight (8) years from the start of operations.
Within ninety (90 days) from effectivity of said Act, the DTI, in coordination with the SEC and NEDA, shall formulate the Implementing Rules and Regulations (IRR). Republic Act. No. 11595 was published in the Official Gazette last January 10, 2022, and took effect fifteen (15) days after said publication.