Subject : Inward remittance of a RegionalOperating Headquarter may be usedas working capital

April 20, 2004 SEC OPINION NO. 29-04 Subject : Inward remittance of a Regional Operating Headquarter may be used as working capital Atty. Jean P. Padron Alba Romeo & Co. 7/F Multinational Bancorporation Centre 6805 Ayala Avenue, Makati City Dear Atty. Padron, This refers to your letter dated March 18, 2004 requesting confirmation of your opinion that the inward remittance of your client, Maitland-Smith Regional Operating Headquarters may be utilized as a working capital to finance its operations. We answer in the affirmative considering the clear provision of 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). Article 59(6), Chapter II thereof, as amended, requires Regional Operating Headquarters ("ROHQs"), for registration purposes, "to submit an undertaking that the multinational company will initially remit into the country such amount as may be necessary to cover its operations in the Philippines but which amount will not be less than Two Hundred Thousand United States dollars ($200,000.00) or its equivalent in other foreign currencies". TCEaDI Very truly yours, (SGD.) VERNETTE G. UMALI-PACO General Counsel