The Municipal Investment Code of Albuera

May 30, 2016 Excerpt from the Minutes of the 142nd Regular Session of the Sangguniang Bayan of Albuera, Leyte Held at the Session Hall on May 30, 2016. ALBUERA MUNICIPAL ORDINANCE NO. 002-16 AN ORDINANCE ADOPTING THE INVESTMENT CODE OF ALBUERA, LEYTE Sponsored by Honorable Nelson D. Pepito and Honorable Salvio A. Cantiga BOOK I General Provisions SECTION 1. Title. This ordinance shall be known as "The Municipal Investment Code of Albuera." ARTICLE I Declaration of Policy 1. It is the declared policy of the Municipality to encourage the entry, expansion, diversification and modernization of enterprises in various areas of the commercial, industrial and service sectors through the provision of appropriate incentives packages. 2. These incentives packages shall be geared towards: 2.1 Accelerating a sound development of the local economy in consonance with the principles and objectives of the national government economic development programs. 2.2 A municipal government that encourages Filipino and foreign investments as herein set out, in projects to develop agricultural, manufacturing and heavy industries, increasing the income of the Municipality at the least cost, increase exports, and bring greater economic stability. 2.3 Encouraging the inflow of domestic and foreign investments in the Municipality in order to attain inclusive economic growth as characterized by the creation of more jobs and income generating opportunities, as well as an expansion of the Municipality's revenue base, raising the standards of living of the people and of every Albueranos. 2.4 Promoting collaborative efforts with the private sector, among themselves or with government, in support of the municipal socio-economic development objectives by means of various tools and modalities such as, but not limited to, Public-Private Partnerships, Corporate Social Responsibility projects, Social Enterprises, and cooperatives. CAIHTE 2.5 Welcome and encourage foreign capital to establish pioneer enterprises that are capital intensive, utilizing a substantial amount of domestic raw materials, and employ substantial manpower. 2.6 To attract and encourage investments in priority areas; such as agri-business, light manufacturing, eco-tourism, and other activities that will significantly contribute to the socio-economic development of the town. 2.7 To promote as a favorable investment destination with adequate power and water resources. 2.8 That the "aftercare program" for investors will be open to assist and to take care of those that took the risk in investing in the Municipality of Albuera. That all municipal government agencies and/or offices concern shall immediately respond and efficiently assist any existing investors that may need help and assistance relative to their company and/or business in the Municipality of Albuera. ARTICLE II Scope, Nature and Purpose This Code applies to all direct investments in the Municipality, including domestic and foreign; and resident and non-resident, but excluding portfolio investments and ordinary trade transactions and short-term monetary operations. Provided further, that this Code shall be consistent with the standards set by the existing 1987 Philippine Omnibus Investment Code, the Regulations of the Department of Trade and Industry (DTI) and the Department of Tourism, and shall be in conformity with the 1991 Foreign Investment Act, Retail Trade Liberalization Act of 2000, Republic Act 6977, as amended by R.A. No. 8289 and further amended by R.A. No. 9501 (Magna Carta for Micro, Small and Medium Enterprises (MSMEs)), the Special Economic Zone Act of 1995 (R.A. No. 7916), the Tourism Act of 2009 (R.A. No. 9593), and other related laws. Provided finally, that this Code shall provide both the policy and implementing guidelines for the programming and prioritization of the municipal development programs and projects as reflected in the approved policy mandates included in, among others, the approved Municipality of Albuera Comprehensive Land Use Plan, the Municipality of Albuera Tourism Development Plan, and the Revised Municipality of Albuera Zoning Ordinance. It should harmonize with and take advantage of the mandate and prescriptions of national development policies, plans and programs, such as Public-Private Partnership (of PPP) and the National Investments Incentives Code and the Philippine Economic Zone Authority (PEZA). ARTICLE III Definition of Terms SECTION 1. When used in this Code, the following terms shall mean: A) "ALIPB" refers to the Albuera, Leyte Investment Promotion Board. aScITE B) "ATIPO" refers to Albuera Tourism and Investment Promotion Office. C) "Foreign Investment" shall mean an equity investment made by a non-Philippine national in the form of foreign exchange and/or other assets actually transferred to the Philippines and duly registered with the Bangko Sentral ng Pilipinas (BSP), which shall assess and appraise the value of such assets other than foreign exchange. D) "Foreign Loans" shall mean any credit facility or financial assistance other than equity investment denominated and payable in foreign currency or where the creditor has the option to demand payment in foreign exchange and registered with the Bangko Sentral ng Pilipinas (BSP) and the Board of Investments (BOI). E) "Albuera Tourism and Investment Promotion Office" means the office established in Article V of this Code. F) " MEIPO/IPO" means Municipal Economic and Investment Promotion Officer/Investment Promotion Officer. G) "Philippine National" shall mean a citizen of the Philippines; or a domestic partnership or association wholly owned by citizens of the Philippines; or a corporation organized under the laws of the Philippines of which at least sixty percent (60%) of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines. H) "Rank and File Employee" refers to any person in the employ of an employer. Such employee performs tasks that are routinary or clerical in nature, with no power to make any independent judgment in the interest of the employer. The term rank and file employee includes regular, casual seasonal, probationary, project/non-project, fixed-term, or field personnel. I) "Registered Enterprise" shall mean any individual partnership, cooperative, corporation or other entity incorporated and/or organized, duly registered with the Securities and Exchange Commission (SEC) and/or Department of Trade and Industry as the case may be, with a legitimate license to operate business. The conduct of business to be approved by the Municipality of Albuera shall conform to existing national laws and local ordinances. J) " Investment" shall mean the placing of money, capital or other resources for trade, business or industry. K) " Entrepreneur" means one who undertakes to start and conduct an enterprise or business, assuming full control and risk. L) " Capital or Capital of Investments" means the wealth or property, assets available for producing more wealth as through investment. M) " Tax Holiday" means an exemption from Business Taxes and all other taxes due to the municipal government. The share of the municipality from real property tax collections shall be waived as specified in Section 2, Book IV, Article I of this Code. N) " Registered Entrepreneur are investor/entrepreneur" who has approved application of registration in this program with the Office of the Municipal Mayor, provided that he/she has complied with all the necessary requirements of the national government and involved national agencies. O) " Start of Operation" shall mean the date when partial enterprise begins production of the products for commercial purposes. For this purpose , a written notice be furnished to the Office of the Municipal Mayor within 10 days from the start of operations. P) " Initial Capital" shall mean the amount before the start of operation which include the capital outlay. Q) " Tourism Enterprises" refers to facilities, services and attractions involved in tourism, such as, but not limited to: travel and tour services; tourist transport services, whether for land, sea or air transportation; tour guides; adventure sports services involving such sports as mountaineering, spelunking, scuba diving, and other sports activities of significant tourism potential; convention organizers; accommodation establishments, including, but not limited to, hotels, resorts, apartelles, tourist inns, motels, pension houses, and home stay operators; tourism estate management services, restaurants, shops and department stores, sports and recreational centers, spas, museums and galleries, theme parks, convention centers and zoos. R) " IPP" means Investment Priorities Plan. ARTICLE IV Albuera, Leyte Investment Promotion Board SECTION 1. Creation and Organization. The Albuera, Leyte Investment Promotion Board, herein referred to as the ALIPB shall composed of the following: Chairperson : Mayor Vice-Chairperson : Vice-Mayor Members : Chairperson, SB Member Committee on Trade; Investments Commerce and Industry Chairperson, SB Member Committee on Ways and Means Chairperson, SB Member Committee on Tourism Municipal Administrator Municipal Legal Officer Municipal Economic & Investment Promotion Officer (MEIPO) Chief, Business Permits and Licensing Office (BPLO) Municipal Treasurer Municipal Planning and Development Officer Municipal Tourism Officer Representative, Business Sector SECTION 2. Powers and Duties of ALIPB. They shall be responsible for the implementation of this Code. To achieve this end, it is tasked to promote, regulate and monitor investments in Municipality of Albuera. It shall develop policies to enhance the business climate, attract investors and support existing businesses. It shall conduct at least one meeting every quarter of the year. In addition to its regular meetings, the Chairperson of the ALIPB or upon the request of the majority of the ALIPB members, may convene a special meeting, provided further that the matters taken up in such special meetings shall cover no other matters than those provided for in the Notice of Special Meeting and its corresponding agenda. A majority of the members of the majority of the ALIPB shall constitute a quorum. The affirmative vote of the majority of the ALIPB members present at a meeting validly held shall be deemed necessary to exercise its powers and perform its duties, which shall be as follows: 1. Approve the Albuera Economic Development and Investment Plan (AEDIP) and cause its updating every three (3) years, in accordance with the Comprehensive Land Use Plan and the Comprehensive Development Plan implementation, and with consideration of economic developments and investment priorities and trends in the Philippines, in the Asian region and in the rest of the world that have an impact on Municipality of Albuera. aDSIHc 2. Approve an Investment Priorities Plan (IPP) to be drafted by the Albuera Tourism and Investment Promotions Office (ATIPO) within the guidelines of the Albuera Economic Development and Investment Plan (AEDIP) and Municipality of Albuera's Annual Investment Plan, and specifies the manner in which it shall be updated, revised or amended. 3. Review, evaluate and approve or disapprove the applications for incentives packages of prospective local/foreign businessmen/entrepreneurs who would want to avail themselves of the incentives provided by this Code. 4. Recommend, for the action of the Municipal Mayor, agreements and/or contracts that can be entered into by the Municipal Government of Albuera with other government agencies and/or private organizations for the purpose of improving the ease of doing business in Municipality of Albuera through but not limited to systems integration and simplification, technical cooperation, data sharing, and other ways of expediting and/or simplifying transactions and procedures. 5. Conduct hearings if necessary, on issues concerning possible violations committed against any provisions of this Code and likewise, invoke the proper sanctions/penalties (such as but not limited to reprimand, cancellation of business license, withholding of benefits or incentives) to all violators of any of the terms and conditions stipulated herein. 6. Periodically review, evaluate and update the operations of Business-One-Stop-Shops (BOSS), in order to ensure optimum efficiency as well as the integration of inter and intra office processes to ensure compliance with the principles and model of a business-friendly town. 7. Review annually the process for the assessment and payment of business taxes in coordination with the Business Permit and Licensing Office (BPLO) and recommend ways to improve them in the interest of speed, comfort, fairness and transparency, without sacrificing the welfare of the town and its people, taking into consideration feedback generated from the private sector. 8. Recommend to the Municipal Council any amendment, revision and/or modification to the existing Municipality of Albuera Incentives Code. ARTICLE V Albuera Tourism and Investment Promotion Office SECTION 1. The Albuera Tourism and Investment Promotion Office (ATIPO) shall be installed and will operate as a department which shall be called the Albuera Tourism and Investment Promotion Office, headed by the Tourism and Investment Promotions Head also acting as AEIPO to be appointed by the Municipal Mayor as Chairperson of the ALIPB; the MEIPO/ATIPO Head shall report directly to the ALIPB. The ATIPO HEAD/MEIPO shall have Operations, Promotions and Marketing, and Support Services staff manned by the number of personnel, necessary to fulfill its mandate; provided that the compensation of such personnel are within the capacity of the Office's allocated budget; provided further, that any increase in personnel shall be approved by the ALIPB. SECTION 2. The MEIPO/ATIPO shall be the implementing arm of the Municipality of Albuera Incentives Code. It shall also function as the Technical Secretariat of the ALIPB. Likewise, it shall coordinate the drafting of the Municipality of Albuera Investment Priorities Plan, which shall be based primarily on the development agenda set forth by the Municipality as embodied in its various national government agencies. The MEIPO/BTIPO shall ensure compliance with the IPP, and monitor and evaluate its effectiveness. SECTION 3. Immediate Staff of the MEIPO/ATIPO Head. The immediate staff shall serve the Tourism and Investment Promotions Head with staff advice and assistance on personnel information, records and statistics of arrival for tourism, communications, supplies, equipment, and disbursements, budgeting of the MEIPO/ATIPO, operational expenses and other custodial work, and such other functions as may be assigned to it by the Tourism and Investment Promotions Head. SECTION 4. Functions, Duties and Responsibilities. The ATIPO shall have the corresponding functions, duties and responsibilities, to wit: a. Operations i. Formulate annual and medium-term plans for Tourism and Investment Promotions and Development together with the ALIPB; ii. Prepare investment opportunity profiles, including but not limited to industry profiles, project profiles, and viability/feasibility studies; iii. Identify support investment activities, such as but not limited to trade agreements with other LGUs for sourcing of raw materials; cooperation agreements with other government entities to facilitate investor transactions; and Public-Private Partnership (PPP) arrangements; iv. Monitor the performance of investments; v. Continuously review the local investment climate and incentives program in order to recommend improvements in coordination with the ALIPB; ETHIDa vi. Provide advisory and other support services to new investors to facilitate their investments; vii. Provide advisory and other support services to established investors to promote investment retention and/or investment expansion; viii. Prepare presentations and materials for ALIPB when meeting with investors; ix. Advice qualified investors on the preparation of their applications for incentives packages; x. Provide and assist the "After Care Program" to all investors in the Municipality of Albuera; xi. To network with counterpart investment promotion organizations and coordinate with support agencies of government and the private sector in investment promotion efforts; and, xii. To build the competence of ATIPO staff to conduct investment and environmental management promotion functions together with the Municipal Environment and Natural Resources Office. b. Promotions and Marketing i. Promote and market Municipality of Albuera as an attractive, friendly investment/business destination; ii. Identify key investment opportunities from among those provided by the Operations unit to be highlighted in promotions and marketing efforts; iii. Disseminate information to potential investors through: trade missions, trade fairs and exhibits, for a seminars, briefings/orientations, etc.; iv. Prepare investment promotion materials ( i.e. , presentations of industry and project profiles; competitive analysis vis a vis other LGUs; competitive advantages of Municipality of Albuera; other general business information). c. Support Services i. Provide facilitation services to investors, which shall include assistance in the following requirements: 1) Registration requirements of the Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI) or Cooperative Development Authority (CDA) as the case may be; 2) Obtaining of Barangay Clearance/Certification; 3) Securing of Locational Clearance; 4) Securing of Fire Safety Inspection Certificate (FSIC); 5) Processing of Mayor's Permit; 6) Applications for Certificate of Registration (COR) and TIN at the Bureau of Internal Revenue (BIR); 7) Registration with the Social Security System (SSS); 8) Registration with the Philippine Health Insurance Corporation (PhilHealth); 9) Applications for the conduct of Department of Labor and Employment (DOLE) approved time and motion studies; and 10) Applications for Environmental Clearance Certificates (ECC) from the DENR. ii. Establish and maintain a database of investment opportunities and investors; iii. Operate an information assistance desk; iv. Recommend and/or implement improvements in systems and processes towards simplification or improved productivity; v. Coordinate access to skilled, City-based manpower resources. SECTION 6. n Reportorial Duties of ATIPO. The ATIPO shall prepare yearly reports on the status of the existing investors/industrial companies in the Municipality, including but not limited to: a. List of existing Registered Entrepreneurs/Investors before the grant of incentives packages provided hereunder; b. List of Registered Entrepreneurs/Investors that have applied from incentives packages; c. List of Registered Entrepreneurs/Investors invited by the Municipality of Albuera and/or MEIPO to invest in Albuera and the total number that have made investments in the Municipality as a consequence of the invitation; cSEDTC d. List of Registered Entrepreneurs/Investors that have ceased operations, including the reason/s for closure; e. Analysis of the increase or decrease of investments in the Municipality of Albuera vis--vis the business climate; f. Performance evaluation of the qualified INVESTORS; and g. Recommended strategies to further increase investments of INVESTORS or prevent decrease thereof based on the findings from letters a-f of this section. The term "List" in this section shall contain the name of the company or corporation, with information as to whether it is a principal or franchise, the amount of capitalization, the nature of investment, its investment strategies, and other information necessary to assist the MAIPT in carrying out its mandate. BOOK II The Albuera Economic Development and Investment Plan (AEDIP) and Investment Priorities Plan (IPP) ARTICLE I Albuera Economic Development and Investment Plan (AEDIP) SECTION 1. Albuera Economic Development and Investment Plan (AEDIP). The Albuera Tourism and Investment Promotion's Office (ATIPO), after consultation with the private sector, the national government through the appropriate offices, such as but not limited to the National Economic and Development Authority, the Department of Trade and Industry (and their affiliate Board of Investments), Department of Tourism and the Department of the Interior and Local Government (DILG) shall submit to the ALIPB the Albuera Economic Development and Investment Plan (AEDIP), which shall define and outline the economic directions and investment priorities of the Municipality. The AEDIP shall provide the Role of the Municipal Government of Albuera discussed in Article IV of this Code, relative to the needs and concerns of the qualified pioneer Investors, in order to achieve equally beneficial arrangements between both parties in consonance with the objectives provided herein. Upon evaluation and approval of the Albuera Economic Development Plan by the ALIPB, the same shall be forwarded by the Board to the Municipal Council for confirmation through a Resolution. The AEDIP shall be in effect for three (3) years, unless otherwise amended or revised earlier by the ALIPB by a three-fourths (3/4) vote of all its members in a meeting duly called for the purpose. Any amendment or revision of the AEDIP shall be made only after a comprehensive review and analysis demonstrates that the proposed amendment or revision is reasonable and necessary in terms of current investment trends, both local and international. ARTICLE II Investment Priorities Plan (IPP) and Investment Priority Areas (IPA) SECTION 1. Formulation of the IPP. The ATIPO shall annually formulate an Investment Priorities Plan (IPP) or every after two (2) years that will reflect the relative importance of investments within the guidelines of the Albuera Economic Development and Investment Plan and Municipality of Albuera's Annual Investment Plan. SECTION 2. Contents of the IPP. The IPP shall contain the following: a. List of preferred and/or mandatory activities in the identified preferred areas of investment listed in the Albuera Economic Development Investment Plan; b. Guidelines for the approval of the applications of the INVESTORS in preferred and/or mandatory activities; and c. Extent of entitlement to incentives of qualified INVESTORS engaged in the preferred and/or mandatory activities in the identified preferred areas of investment. SECTION 3. Adoption and Review of the IPP. The IPP prepared by the ATIPO/MEIPO shall be subject to the approval of the ALIPB through a majority vote, in a meeting duly called for the purpose. The IPP shall be in effect for one (1) year or (2) two years, unless otherwise amended or revised by the MAIPT, through a majority vote, in a meeting duly called for the purpose. SECTION 4. Criteria in Determining Investment Priority Areas. Economic activity that shall be included in the Investment Priorities Plan must be environmentally, socio-economically, technically and financially sound after thorough investigation and analysis by the Board. The determination of preferred areas of investment to be listed in the Investment Priorities Plan shall be based on the following: a) Long-run comparative advantage b) Economic soundness c) Extent of contribution of the activity to a specific development goal d) Market and technical considerations e) Value of social objectives SDAaTC f) Other indicators of comparative advantage. SECTION 5. Preferred Investment Areas. In the initial years of implementation, the following shall be adopted as priority investment areas by the board: Tourism/Nature Tourism/Eco-tourism Accommodation facilities Nature Parks/Mountain Resort Transportation Services Restaurants/Food Outlets Other Tourism-Related Services Agri-Business/Agriculture Post-harvest facilities High Value Crop Production Feed Mill Coconut Abaca Rice Banana Corn Manufacturing Poultry & Livestock Production Poultry Dressing Plant and Slaughterhouse Services Media/Advertising Medical Services/Facilities Information Technology Financial Services Engineering/Architectural Services Training and Sports Facilities Human Resource Development ARTICLE III Role of the Municipal Government of Albuera, Leyte SECTION 1. The Municipal Government is committed and dedicated in enhancing and maintaining a friendly business climate by way of the following support programs, among others: a. Sufficient and adequate Infrastructure and Ease of Access. The Municipal government shall enact policies and programs that will facilitate access to investment sites, whether by way of road and sidewalk infrastructure or by way of traffic and transportation policies and programs. b. Development of Information and Communications Technology (ICT) Infrastructure. The Municipal Government shall promote investments in ICT infrastructure and facilities. It shall also maximize the use of e-governance systems and mechanisms for promoting and facilitating interaction, access to information, and ease of private enterprise-local government transactions in the Municipality, with both local and international publics. c. Public Private Partnership (PPP). This Code recognizes the PPP as a potentially significant investment strategy for the Municipality being a success story in the implementation of Local Regional Economic Development approach. The Municipality may, by itself or in cooperation with the National Government, provide incentives to private sector proponents of PPP projects. Further, the Municipality may explore other forms of PPP in such a way that qualified investors and/or MLEs may be given access to and allow investment in government owned properties by means of joint venture agreements for the Establishment of factories and/or manufacturing industries and including any tourism related establishments in preferred areas of investment to be determined in the Albuera Economic Development Investment Plan. To address this, idle and forfeited lands of the Municipality may be made available for investments. Finally, private properties available for investments may also be acquired and made available for public consumption only upon payment of just compensation. d. Ease of Doing Business. It is the duty of the Municipal Government to promote an environment conducive to the entry and growth of enterprises in the Municipality, by way of clarity and transparency in tax assessment procedures, provision of express lanes in new business registration and renewals, and express lanes for the issuance of construction permits; provision of services that can act speedily on request for redress; provision of point person through ATIPO and/or direct lines to address immediate concerns of INVESTORS and existing investors also known by this city government as the "AFTER CARE PROGRAM"; and other measures to fully effect the thrust of creating a Business-Friendly Town. acEHCD e. Links to Human Resource Needs. The Municipal Government shall provide links to qualified manpower sources, such as colleges, universities and training centers, as well as to the manpower recruitment and the services of the Municipal Government's Public Employment Services Office (PESO). To this effect, the MAIPB through the PESO shall establish systems to assist and endorse qualified employees from among the bona fide residents of Albuera for employment to the qualified Investors. f. Clean and Green Environment. It is the duty of the Municipal Government to ensure a clean, green and pleasant environment to enhance its livability. To this end, it is the Town's policy to redevelop blighted and devastated areas in cooperation with private capital and assist informal settlers with their shelter needs. g. Safety and Security. Ensuring the safety of investors and taking into consideration the peculiar security needs of global enterprises that undertake their operations during irregular work hours, it is the duty of the Municipal Government to work more closely with the Philippine National Police to strengthen security and safety measures in these areas of operation as well as to further train and equip local public order and safety officers and staff as a force multiplier. h. Industrial and Labor Relations. The Municipal Government should create ways to promote industrial peace and mutual growth and benefit among the qualified investors. They should encourage and support all forms of employee participation in production. The rights of the employee to participate in policy or decision-making on matters affecting their rights, duties, benefits or welfare shall also be recognized. i. Economic Support and Safety. The Municipality may find means to help lessen the cost inputs including power and other utilities to attract more quality investments. The MAIPB may be empowered to negotiate and enter into contracts with all utility providers to such effect. Creative alternatives to reduce the costs of inputs and utilities must also be facilitated. BOOK III ARTICLE I Registered Entrepreneur/Investor SECTION 1. A registered entrepreneur/investor whose business activity or enterprise whether partnership or corporation, whose total assets, inclusive of loans but exclusive of the land on which the particular business entity's office, plant and equipment are situated shall be further categorized as follows to wit: a. SMALL ENTERPRISE Registered Entrepreneur/Investor with a minimum investment of Php30,000,000.00 but not more than Php50,000,000.00. b. MEDIUM ENTERPRISE Registered Entrepreneur/Investor with a minimum investment of Php50,000,000.00 but not more than Php100,000,000.00. c. LARGE ENTERPRISE Registered Entrepreneur/Investor with a minimum investment of over Php100,000,000.00. SECTION 2. Coordination. The MAIPB through its Chairman shall coordinate with the Micro, Small and Medium Enterprise Development (MSMED) Council, Board of Investments (BOI), Philippine Economic Zone Authority (PEZA), and other National Government Agencies by entering into a Memorandum of Agreement or Understanding (MOA or MOU), as may be necessary to ensure that the rights and benefits of the Registered Entrepreneur/Investor in the Municipality are protected and available. BOOK IV Investment Incentives to Qualified Investors ARTICLE I Incentives SECTION 1. Non-Fiscal Incentives. In addition to services to be provided by the ATIPO under Book I, Article IV, Section 4 of this Code, qualified investors shall be entitled to the following non-fiscal incentives: a) A point person or account officer shall be assigned by the ATIPO to assist pioneer or new enterprises in obtaining the requirements enumerated in Book I, Article 5, Section 4.c.1, provided that said enterprise has no previous operation in the Municipality and that the qualifications set forth in Book III, Article I, Section I have been duly complied with; b) Transparency in the process of registering and qualifying for the grant of Municipal Government incentives; c) No modifications by the Municipal Government of regulatory or contractual requirements and arrangements or interference in the internal operations of the enterprise, after the granting of local government incentives to the enterprise, unless such modifications are the result of mutual agreement between the registered enterprise and the Municipal Government; SDHTEC d) Access to comprehensive information on investing and doing business in Albuera, Leyte, including all plans and policies of the Municipal Government as they relate to economic growth and development; e) Facilitate employment of qualified foreign personnel, as may be required for the efficient operation of the enterprise or for technology transfer, provided that no Philippine national is qualified or available for the tasks or jobs they are to undertake; f) Expeditious certification, registration, licensing and permitting operations through the installation of systems and procedures that guarantee minimal red tape and express processing; g) Promotion of public safety for the enterprise and its personnel through police, fire and disaster-related public assistance services; h) Resolution of all gray areas in the interpretation of benefits and incentives granted under this Code, in favor of the investor. SECTION 2. Fiscal Incentives. Qualified Investors shall be entitled to the following fiscal benefits according to the amount of capital of investments as follows: a. Small Enterprise Registered Entrepreneur/Investor will qualify for TWO (2) years Tax Holiday on Mayor's Permit and Other Local Taxes. b. Medium Enterprise Registered Entrepreneur/Investor will qualify for THREE (3) years Tax Holiday on Mayor's Permit and Other Local Taxes. c. Large Enterprise Registered Entrepreneur/Investor will qualify for FIVE (5) years Tax Holiday on Mayor's Permit and Other Local Taxes. d. Registered Entrepreneur/Investor for any TOURISM RELATED ESTABLISHMENT will qualify for a ONE (1) year Tax Holiday on Mayor's Permit and Other Local Taxes with facilitations on marketing and promotion. SECTION 3. Board of Investments and Provincial Incentives. a. Board of Investments Incentives Income Tax Holiday (ITH) Tax and Duty Free Importation of Equipment and Raw materials b. Provincial Incentives Full Exemption from fees and charges under the Provincial Tax Ordinance Graduated tax exemption on the Transfer of Real Property Ownership, Business of Printing and Publication, Franchise Tax, Amusement Tax Real Property Tax Holiday SECTION 4. Employment of Bona Fide Residents of Albuera, Leyte. A certain percentage of the company's workforce or manpower should be a resident of Albuera, Leyte. The number of employees or workforce coming from the Municipality of Albuera will vary according to the amount of Capital of Investment and will be determined by the ALIPB. ARTICLE II Registration of Enterprises Engaged in Investments Provided in AEDIP SECTION 1. A Registration Certificate shall be granted to all qualified enterprises, whose applications for incentives packages have been approved by the ALIPB. ARTICLE III Implementing Rules and Regulations SECTION 1. Within ninety (90) days after the passage of this ordinance, the ALIPB shall adopt its Implementing Rules and Regulations (IRR). ARTICLE IV Responsibilities of Registered Enterprises/Entrepreneurs SECTION 1. Reportorial Obligations. Registered enterprises shall submit reports to the MAIPB on the operations of the enterprise twice yearly, before the end of the second and fourth quarter of the calendar year respectively, and the annual audited financial report on operations. The MEIPO/ATIPO HEAD may require other data/documents to be included in the said report. SECTION 2. Visitorial Requirements. The MAIPB, through its implementing arm (ATIPO) shall, in consultation and in coordination with the registered enterprise, undertake visits to the enterprise and request to be briefed on the status of operations, to be assured of the enterprises compliance with the grant of preferences and investment incentives, and to be alerted to any assistance or support that can be provided by the Municipal Government. ARTICLE V Appropriations SECTION 1. ALIPB. The Maintenance and Other Operating Expenses of the newly created DEPARTMENT for Calendar Year (CY) 2016 shall be taken from the balance of the budgetary allocation through the Supplemental Budget from the General Fund, or from any available funds of the Municipal Treasury. AScHCD The annual fund necessary for the maintenance and operation of the ALIPB and ATIPO shall be included in the yearly appropriations from the General Fund of the Albuera Local Government. ARTICLE VI Miscellaneous Provisions SECTION 1. Reimbursement/Return of the Fiscal Incentives. The INVESTORS shall be required to reimburse or return the equivalent amount of the fiscal incentives duly received in any of the following instances: a. The Registered Investors/Entrepreneur's failure to comply or maintain the qualifications set forth under Book III, Article I, Section 1 or 2, except otherwise provided therein; or b. The investor is found guilty of misrepresentation or fraud for the purpose of availing the incentives contained in this Code. Provided further, the Board shall determine after due notice and hearing, whether or not a reimbursement of the fiscal incentives is in order and shall make a determination of the amount to be reimbursed or returned. This section is without prejudice to the powers and functions of the Board. SECTION 2. Registration of Existing Investors/Entrepreneurs. Investors/Entrepreneurs who have been operating in the Municipality for a period of not more than ONE (1) YEAR from the effectivity of this Municipal Ordinance, SHALL be QUALIFIED to apply for registration and be entitled to the privileges and incentives granted under this Code subject however to the following conditions: a. That the Investors/Entrepreneurs are in compliance with the qualifications, requirements and conditions stipulated in this Code. b. That the privileges and incentives granted under this Code shall have no retroactive effect and does not entitle the Investor/Entrepreneur, reimbursement/refund or credits for any fees/taxes already paid to the Municipality. SECTION 3. Transitory Provisions. Within thirty (30) days after the enactment of this Ordinance, the Municipal Mayor shall convene the ALIPB. Likewise, the Municipal Mayor shall delegate the existing Tourism and Investment Promotions Head to continue performing its mandates under this Code. SECTION 4. Separability Clause. The provisions of this Code are separable. If for any reason, any section of the Code shall be declared to be unconstitutional or invalid, the validity of other provisions shall not be affected and shall continue to be in full force and effect. SECTION 5. Repealing Clause. All local legislation and executive directives inconsistent or in conflict with this Code are hereby repealed or modified accordingly. SECTION 6. Effectivity. This code shall take effect upon its approval. ENACTED: May 30, 2016. I HEREBY CERTIFY to the correctness of the foregoing ordinance which was duly adopted by the Sangguniang Panlungsod during its regular session held on May 30, 2016. (SGD.) WILFREDO F. ANDRADE Secretary to the Sanggunian ATTESTED: (SGD.) BUEN CORNELIUS G. ZALDIVAR SB Member (SGD.) RODANIMOD C. CAYANONG SB Member (SGD.) ANTONIO T. SALINAS SB Member (SGD.) SALVIO A. CANTIGA SB Member (SGD.) NELSON D. PEPITO SB Member/Floor Leader (SGD.) ATANACIO M. BARTE SB Member (SGD.) ARSENIO L. PATRICIO SB Member (SGD.) ARCELITO B. VELARDE ABC Federation President, Ex-Officio APPROVED: (SGD.) CATALINA L. TOLERO Municipal Vice Mayor/ Presiding Officer (SGD.) NORMAN S. MESINA Municipal Mayor n Note from the Publisher: Copied verbatim from the official copy. Section "6" should read as "5."