Philippines: Foreign Employers Can Stay Forever

[euroinasia]

Philippines: foreign employers can stay forever

The Associated Press

Monday, November 17, 2008

MANILA, Philippines: Foreigners who employ at least 10 Filipinos can stay in the country indefinitely, the Philippine government said Monday in an attempt to woo more investors.

President Gloria Macapagal Arroyo signed the new rules in hopes of providing more jobs for Filipinos as the country braces for a global economic slowdown, said Immigration Commissioner Marcelino Libanan.

"We envision that if we make it easy for foreign investors to acquire a visa that allows them to stay in the country indefinitely, we encourage them to infuse their capital and provide jobs," he said.

The Philippines has been struggling to increase foreign investment because of long-standing security issues, including Muslim and communist rebellions, as well as chronic corruption.

Official figures show direct foreign investment accounts for about 15 percent of the country's gross domestic product, while comparable regional economies are attracting 20 percent or higher.

The new rules apply only to foreigners who employ 10 or more Filipinos "in viable and sustainable commercial enterprises, trade or industry," the Immigration Bureau said. The bureau, however, has not made it clear if foreigners can keep such a visa even after their business no longer employs Filipinos.

Most other visitors are allowed to stay at least 21 days, depending on their nationality. Most visas can be extended for up to a year.

[torrenova]

A great move as long as it is not just focussed on larger businesses. In addition, the costs of employing these people must not be onerous with high taxes and social insurance demands.

I have been arguing this case for Thailand for years as a way to actually transfer the cash that some small business owners use to maintain their visa status. This cash leaks out of the economy into foreign governments through visa costs (e.g. Cambodia), airfares back to the home country to obtain a new visa as well as the environmental impact of all that travel.

It will presumably mean that the government can collect some taxes from small businesses which, if not too high, is a good thing all round.

If they get it right it will be great but if they insist on incorporation and make the costs of that too high then it will have no impact. It is crazy that one can run and operate a company in the UK for a fraction of the costs of doing so in Thailand.

The thinking behind it is to be applauded. One can only hope that the implementation is equally well thought out.