What is a RHQ and what are the activities it can engage in?
Republic Act (R.A.) No. 8756 (amending the Omnibus Investments Code of 1987, and approved on November 1999), defines RHQ as an office whose purpose is to act as an administrative branch of a multinational company engaged in international trade which principally serves as a supervision, communications and coordination center for 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.
The activities of the RHQ are limited to acting as a supervisory, communications and coordinating center for its subsidiaries, affiliates and branches in the region.
It is neither allowed to derive any income from sources within the Philippines and to participate in any manner in the management of any subsidiary or branch office it might have in the Philippines nor to solicit or market goods and services whether on behalf of its mother company or its branches, affiliates, subsidiaries or any other company.