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Establishment restrictions

PHILIPPINES

Reported in 2010

Chapter Investment  |  Sub-chapter Restrictions on ownership
Discriminatory minimum capital requirements
Domestic companies are required to have not less than PHP 5,000 (approx. USD 112) capital. However, a company with more than 40% foreign equity must have a minimum capital of PHP 9,000,000 (approx. USD 200,000) if it produces goods for sale or engages in business in the Philippines. If it exports at least 60% of its output, the minimum paid-in capital required is PHP 5,000 (approx. USD 112).
Coverage Horizontal
Establishment restrictions

PHILIPPINES

Since 2000

Chapter Investment  |  Sub-chapter Restrictions on ownership
Republic Act No. 8762 (Retail Trade Liberalization Act)
The Philippines' Retail Trade Liberalization Act includes a minimum capital requirement of 2,500,000 USD for investments in retail, including E-retail. The law states that a retail enterprise with paid-up capital of less than this amount "shall be reserved exclusively for Filipino citizens and corporations wholly owned by Filipino citizens."

It has been reported that there are plans to reduce to the requirement to 200,000 USD.
Coverage Retail firms, including E-retail
Establishment restrictions

PHILIPPINES

Reported in 2015

Chapter Investment  |  Sub-chapter Restrictions on ownership
Ban on foreign e-retailing
The Securities and Exchange Commission restricts only to Philippine nationals the commercial operation of an online platform to market or sell third party products and services.
Coverage E-retailing
Establishment restrictions

PHILIPPINES

Reported in 2015

Chapter Investment  |  Sub-chapter Restrictions on ownership
Art. XVI of the 1987 Constitution of the Philippines
Under the Philippines Constitution, foreign equity ownership in public utilities, including telecommunication companies, must not exceed 40%. This also applies to value added services, which are also classified as public utilities.
Coverage Telecommunication sector (including value-added services)
Fiscal Restrictions

PHILIPPINES

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
WTO Agreement on Government Procurement
The Philippines are not a signatory to the WTO Agreement on Government Procurement.
Coverage Horizontal
Source
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
Fiscal Restrictions

PHILIPPINES

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Commonwealth Act 138 (1936) and the Constitution (sections 10 & 12)
Government procurement laws and regulations favour Philippine-controlled companies and locally produced materials and supplies. The main legislation which lays out these preferences is the Commonwealth Act 138 (1936), which allows for a 15% price preference for domestic bidders on materials and supplies for public use.

Furthermore, the Constitution (Sections 10 & 12) provides for a strong preference to procure domestically. It requires the state to give preference to qualified Filipinos when granting concessions (Section 10) and to promote the preferential use of Filipino labour, domestic materials and locally produced goods, and requires the State to adopt measures that help make them competitive (Section 12).
Coverage Horizontal
Fiscal Restrictions

PHILIPPINES

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
Republic Act 9184 (2002) / Government Procurement Reform Act (GPRA)
The Republic Act 9184 (2002) / Government Procurement Reform Act (GPRA) applies to all branches of government (including government owned and controlled corporations). For the procurement of goods and consulting services, foreign participation is limited to 40%, with consideration of reciprocity.

Exceptions exist for cases where goods are not available from local providers if necessary to prevent situations that defeat competition or restrain trade; and
and local consultants do not have the sufficient expertise/capability to render the services required under the project, or when provided under any treaty or international or executive agreement.
Coverage Horizontal
Source
  • EC Market Access Database: http://madb.europa.eu/madb/barriers_details.htm?isSps=false&barrier_id=11140
Fiscal Restrictions

PHILIPPINES

Reported in 2015

Chapter Public Procurement  |  Sub-chapter Preferential purchase schemes covering digital products and services
2003 Government Procurement Act
The 2003 Government Procurement Act sought to consolidate procurement laws, simplify prequalification procedures, introduce objective and non-discretionary criteria in the selection process and establish an electronic single portal for government procurement activities.

However, the implementation of the Act remains inconsistent and business complaints have been recorded. US companies have expressed concerns about delayed procurement decisions and payments, as well as differing interpretations of the procurement law among Philippine government agencies.

There have also been complaints by European companies which often focus on:
- tight deadlines for tender submissions;
- overly complex requirements (certifications, business licensing etc.);
- indirect discrimination through technical specifications;
- requirements to disclose confidential and sensitive business details relating to past tenders won.
Coverage Horizontal
Sources
  • USTR, 2015 National Trade Estimate Report on Foreign Trade Barriers: https://ustr.gov/sites/default/files/2015%20NTE%20Combined.pdf
  • EC Market Access Database: http://madb.europa.eu/madb/barriers_details.htm?isSps=false&barrier_id=11140
Fiscal Restrictions

PHILIPPINES

Reported in February 2016

Chapter Taxation & Subsidies  |  Sub-chapter Discriminatory tax regime on online services
Proposal for tax on foreign digital services
Since 2016 Philippines Bureau of Internal Revenue (BIR) has been drawing up plans aimed at taxing foreign-supplied digital services. One of the points of focus for the Philippine tax authorities are companies that sell services via social media sites such as Facebook and Instagram. The services covered in any potential piece of legislation would attract value-added tax (VAT), the current VAT rate in the Philippines is 12%.
Coverage Foreign digital services
Fiscal Restrictions

PHILIPPINES

ITA signatory? I II

Chapter Tariffs and Trade Defence  |  Sub-chapter Applied tariffs on digital goods
Average MFN rate
2.7%
Weighted average MFN rate
1.99%
Maximum tariff rate
30%
Coverage rate of zero-tariffs
33.86%

Coverage: Digital goods
Sources

Restrictions on data

NEW ZEALAND

Reported in 2014

Chapter Content access  |  Sub-chapter Bandwidth, net neutrality
Practice of throtlling
An Internet service provider (Orcon) has reported that the incumbent (Spark New Zealand, formerly Telecom New Zealand) throtlled broadband traffic.
Coverage Telecommunication sector
Restrictions on data

NEW ZEALAND

Since 2014

Chapter Intermediary liability  |  Sub-chapter Other restrictive practices related to intermediary liability
"Ought to have known" concept
The "ought to have known" concept applies in New Zealand. According to this concept, page hosts "ought to have known" that comments were being posted that were likely to be defamatory. This might incentivise intermediaries to monitor their services in order to locate defamatory material. Nevertheless, the Court of Appeal of New Zealand recently ruled that a third party publisher, the owner of a Facebook page that contained comments by others, was not held liable for defamation without "actual knowledge".
Coverage Internet intermediaries
Restrictions on data

NEW ZEALAND

Since 2008

Chapter Intermediary liability  |  Sub-chapter Lack of safe harbor for intermediary liability
Copyright (New Technologies) Amendment Act
In New Zealand, there is no general legal definition of internet intermediaries nor any general law on Internet intermediary liability. The official government position is that no safe harbor provision is required to protect Internet Services Providers (ISPs) providing referral or linking services from liability, because the provision of such services does not constitute copyright infringement.

Nevertheless, sections 92B, 92C and 92E of Copyright (New Technologies) Amendment Act 2008 specify in which cases an ISP does not infringe copyright laws. For example, in relation to objectionable material, “the law exempted ISPs from liability as far as they provide access to content; it did not exempt them from hosting or caching objectionable content.”
Coverage Internet intemediaries
Restrictions on data

NEW ZEALAND

Since July 1993

Chapter Data policies  |  Sub-chapter Administrative requirements on data privacy
Privacy Act of 1993
According to the Privacy Act, every public and private sector agency must have at least one data privacy officer.
Coverage Horizontal
Restrictions on data

NEW ZEALAND

Since August 2004

Chapter Data policies  |  Sub-chapter Data retention
Telecommunications Information Privacy Code 2003
The Telecommunications Information Privacy Code 2003 prohibits the retention of telecommunications information for longer than is required for the purposes for which the information may be lawfully used. The Code was enacted under the Privacy Act 1993 in order to amend the information privacy principles in the Act with regard to telecommunications agencies. The Code affects all telecommunications agencies (including telephone companies, publishers of telephone directories, Internet service providers, mobile telephone retailers and call centers) in their handling of personal customer information.
Coverage Telecommunication sector