Executive Visa for Foreign Managers in the Philippines: How It Works

Foreign executives assigned to a Philippine regional or area headquarters (RHQ) or regional operating headquarters (ROHQ) of a multinational company may be issued a multiple entry special visa under Republic Act No. 8756. The visa is issued within seventy-two hours upon submission of complete documents, is valid for three years, and covers the executive's spouse and unmarried children under twenty-one. The employer must certify that the person is an executive who will work exclusively for the licensed headquarters and will receive a salary of at least US$12,000 per year, paid by the Philippine headquarters.

Who qualifies for the executive visa

The visa is not open to every foreign manager. It is tied to a specific corporate structure. Under Article 60 of the Omnibus Investments Code, as amended by Republic Act No. 8756, the foreign personnel must belong to a regional or area headquarters or a regional operating headquarters of a multinational company duly licensed to operate in the Philippines.

The RHQ or ROHQ itself must first be licensed. Under Article 58, an RHQ is an administrative branch of a multinational company engaged in international trade that supervises, communicates with, and coordinates its subsidiaries, branches, or affiliates in the Asia-Pacific Region and other foreign markets, and which does not earn or derive income in the Philippines. Under Article 59, an ROHQ may derive income in the Philippines by performing qualifying services for its own affiliates, subsidiaries, or branches.

The RHQ license is secured from the Securities and Exchange Commission upon the favorable recommendation of the Board of Investments. ROHQs of non-banking and non-financial institutions follow the same route; ROHQs of banking and financial institutions must also secure a license from the Bangko Sentral ng Pilipinas.

What the employer must certify

A responsible officer of the applicant company must submit a duly authenticated certificate stating two things: that the person seeking entry is an executive of the applicant company and will work exclusively for the applicant's RHQ or ROHQ, and that the executive will receive a salary paid by the Philippine headquarters equivalent to at least US$12,000 per annum.

This certification is the heart of the application. Without it, the Bureau of Immigration has no basis to issue the special visa.

How long the visa lasts and how it is extended

The multiple entry special visa is valid for three years to enter the Philippines. The admission and stay are coterminous with the validity of the visa.

The stay is extendible for another three years. To extend, the applicant submits to the Bureau of Immigration a sworn certification by a responsible officer of the RHQ or ROHQ confirming that its license to operate remains valid and subsisting, and that the headquarters has withheld the tax due on compensation and paid the same to the Bureau of Internal Revenue.

Exemptions enjoyed by visa holders

Non-immigrants admitted under the multiple entry special visa, together with their spouses and dependents, are exempt from the payment of all fees under the immigration and alien registration laws, from securing alien certificates of registration, and from obtaining emigration clearance certificates and all types of clearances required by any government department or agency.

Two conditions attach to departure. Upon final departure from the Philippines, the employer must advise the Bureau of Immigration in writing at least five working days before the non-immigrant leaves, and the departing employee must submit a tax clearance from the Bureau of Internal Revenue.

Tax treatment of the executive

Aliens employed by an RHQ or ROHQ are taxed at fifteen per centum (15%) of their gross income for each taxable year, covering salaries, wages, annuities, compensations, remuneration, and emoluments. The same treatment applies to Filipinos occupying the same positions, who may choose between the 15% rate on gross income or the regular rate under the National Internal Revenue Code.

An alien executive may also enjoy tax and duty free importation of personal and household effects under the Omnibus Investments Code, as amended by Republic Act No. 8756, provided the effects arrive within ninety days before or after conversion of the executive's admission category to the multiple entry visa. Personnel and their dependents joining them during the assignment are likewise exempt from the travel tax.

Frequently asked questions

How long does it take to get the executive visa? The multiple entry special visa is issued within seventy-two hours upon submission of all required documents.

Can my spouse and children come with me? Yes. The spouse and unmarried children under twenty-one years of age may be issued the same visa if accompanying the executive or following to join him after his admission into the Philippines as a non-immigrant.

What salary must the executive receive? A responsible officer of the applicant company must certify that the executive will be paid by the Philippine headquarters an amount equivalent to at least US$12,000 per annum, or its equivalent in other foreign currencies.

Practical takeaways

• The executive visa is available only to foreign personnel of a licensed RHQ or ROHQ of a multinational company, so the headquarters must be registered first.
• The employer's authenticated certification of executive status and the US$12,000 annual salary floor are mandatory.
• The visa is valid for three years, is extendible for another three years, and covers the spouse and unmarried children under twenty-one.
• Holders are exempt from immigration and alien registration fees and most clearances, but must secure a tax clearance before final departure.
• Compensation is taxed at 15% of gross income, and the employer must notify the Bureau of Immigration at least five working days before the executive's final departure.

Primary sources

The rules discussed above are drawn from the following primary sources. Where the firm's library holds the document as a PDF it is embedded here in full; the rest are cited by title.

Amendments to foreign exchange regulations covering foreign investmentsOpen in Law LibraryDownload PDF

• Commonwealth Act No. 613, August 26, 1940

• REPUBLIC ACT NO. 8756 - AN ACT PROVIDING FOR THE TERMS, CONDITIONS AND LICENSING REQUIREMENTS OF REGIONAL OR AREA HEADQUARTERS, REGIONAL OPERATING HEADQUARTERS, AND REGIONAL WAREHOUSES OF MULTINATIONAL COMPANIES, AMENDING FOR THE PURPOSE CERTAIN PROVISIONS OF EXECUTIVE ORDER NO. 226, OTHERWISE KNOWN AS THE OMNIBUS INVESTMENTS CODE OF 1987

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.