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Paul

The Anti-Dummy Law of the Philippines

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lazydays

The effect of circa 300 years of Spanish and American colonization. They want to make darn sure that foreigners can never control major aspects of the country, economy or infrastructure here again. The only way I foresee it changing and protectionist laws being changed or repealed is if the Philippines is signatory to some sort of Pacific Rim free-trade agreement similar to NAFTA.

 

Of course we must remember,that most of the very wealthy 3% are of Spanish descent.

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A_Simple_Man

The only way I foresee it changing and protectionist laws being changed or repealed is if the Philippines is signatory to some sort of Pacific Rim free-trade agreement similar to NAFTA.

 

You have never heard of the ASEAN? Most of the laws designed against foreigners are only designed against NON ASIAN foreigners. . . IMHO only

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Jay

The only way I foresee it changing and protectionist laws being changed or repealed is if the Philippines is signatory to some sort of Pacific Rim free-trade agreement similar to NAFTA.

 

You have never heard of the ASEAN? Most of the laws designed against foreigners are only designed against NON ASIAN foreigners. . . IMHO only

 

I was including the left coast of N. America in the Pacific Rim. My Seattle mentality kicking in again, I guess. I've always considered my home neck of the woods to be a part of the Pacific Rim economy as much as that of the rest of the US.

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Alan S

 

So how does this affect a foreigner "running" a business in Phils, like a resort or an internet cafe?

 

It does affect a foreigner running a "retail establishment".

 

The "Negative list" (Sec. 5 of RA 8762), prohibit foreigners from engaging in:

Retail trade enterprises with paid-up capital of less than US$2,500,000.

 

 

The anti-dummy law prohibits, for example, your wife owning such a business and "employing" you.

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KeithAngel

That would include gulp .............bars then

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Jess Bartone

So how does this affect a foreigner "running" a business in Phils, like a resort or an internet cafe?

 

It does affect a foreigner running a "retail establishment".

 

The "Negative list" (Sec. 5 of RA 8762), prohibit foreigners from engaging in:

Retail trade enterprises with paid-up capital of less than US$2,500,000.

 

 

The anti-dummy law prohibits, for example, your wife owning such a business and "employing" you.

 

 

This could really throw the cat among the pigeons, and the consequences could be very far-reaching. So if and when we establish a family business, what if I am there (hypothetically) as an unpaid advisor only, and any income would go into my wife's bank account?

 

According to this document, many, many expats are in deep do-do. And yet, what was it? 55 billion USD in remittances from USA alone? When, oh when is a government going to stand up to the ruling class of the Philippines and threaten their power base in a meaningful way? for example... freezing private offshore remittances. I'm sure the USA economy could do with an extra 55bn over the next 12 months. That would make those Spanish decendants sit up and reconsider their position.

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broden

when i retire i kind of like the idea of it being against the law for me to work .. but then no matter where in the world i was i would claim that to be the truth

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Alan S

Like many laws in most countries, it is often ignored until....

 

I am sure that many expats fall foul of this /these laws, and "get away" with it.

The problem comes when someone with influence wants to use it, and then the expat can get hung out to dry.

 

You might run a small rural sari sari store, but try building up a chain of them, each close to a SM, and see how long you last!

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JamesMusslewhite

If the US had an anti-dummy law, half the country would be in jail.

 

Hey at least I can insult my own country freely :biggrin_01:

 

Really only 50%? Boy are you being conservative.:evan_iliadis:

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fanboat

In the past 100 years....I have never heard any kind of this Law enforced......own on brothers

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Markham

So how does this affect a foreigner "running" a business in Phils, like a resort or an internet cafe?

 

It does affect a foreigner running a "retail establishment".

 

The "Negative list" (Sec. 5 of RA 8762), prohibit foreigners from engaging in:

Retail trade enterprises with paid-up capital of less than US$2,500,000.

 

 

The anti-dummy law prohibits, for example, your wife owning such a business and "employing" you.

 

Hmmm.... I wonder if the new owner of Booze 'n' Brews knows that....

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Alan S

Perhaps it has a paid up share capital of $2.5 million. :welcome2:

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musicman666

The effect of circa 300 years of Spanish and American colonization. They want to make darn sure that foreigners can never control major aspects of the country, economy or infrastructure here again. The only way I foresee it changing and protectionist laws being changed or repealed is if the Philippines is signatory to some sort of Pacific Rim free-trade agreement similar to NAFTA.

 

Of course we must remember,that most of the very wealthy 3% are of Spanish descent.

 

are there any statistics on that.. its my impression that the chinese screwed their way in and then shut the gates against any other foreigners...and now pretty much run the show from back of house.

 

you really should look at how the chinese changed their family names so that they now sound spanish.. its quite comical.

Edited by musicman666

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retired

Non - Asians can and do own and operate various kinds of busisness in the Philippines obviously including bars . My guess is would have to be in wife or someone else's name and perhaps there is some sort of clause that does not require a $2,5000,000 investment in every type of business enterprise . Perhaps someone else that actually owns a business could speak to the particulars .

 

As a side note not related to owning a business i have seen some mobility within Philippine society regarding foreign investment . At one time Pag - Ibig , the gov. funded program for home ownership , would not accept a foreign spouses income as counting toward monthly household income but that no longer applies so maybe there is some hope for the future . :-)

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Alan S

It is true that not every type of business requires such a large investment.

 

But retail enterprises do.

 

I dont believe that particular clause covers a bar or similar establishment, but would need to wade through loads of files etc to see exactly what does cover it.

And its nearly my bed time so I aint going to! lol

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