B. Partnerships

Partnerships: Transfer of Rights and Foreign Participation Requirements

Under Republic Act No. 8424, no share, obligation, bond, or right in any partnership organized or established in the Philippines shall be transferred to any new owner in the partnership books by way of gift inter vivos or mortis causa, legacy, or inheritance, unless a certification from the Commissioner of Internal Revenue is shown establishing that the taxes fixed and due thereon have been paid¹.

With respect to licensing and foreign participation, Republic Act No. 7042, as amended by Republic Act No. 11647, governs foreign investment in partnerships, subject to applicable foreign-equity restrictions and other current requirements.